The US Forest Service has issued the final record of decision for South32 (ASX:S32) unit South32 Hermosa's proposed $2.16 billion Hermosa Critical Mineral Project in Arizona's Santa Cruz County, marking a major regulatory milestone for the planned mining and processing operation, the agency said Tuesday.

The project supports the Trump administration's efforts to expand domestic critical mineral production by advancing one of the world's largest undeveloped zinc resources alongside significant manganese deposits.

The project is expected to create up to 900 direct jobs and thousands of indirect jobs while strengthening US supply chains, enhancing energy security, and boosting domestic manufacturing, the agency said.

The decision completes the National Environmental Policy Act review, with final authorization for the project anticipated on Sept. 4, pending submission of the required financial assurance and the final mine plan of operations.