20 September 2024
South32
Limited
(Incorporated in Australia under the Corporations Act 2001
(Cth))
(ACN 093
732 597)
ASX / LSE
/ JSE Share Code: S32; ADR: SOUHY
ISIN:
AU000000S320
south32.net
US DEPARTMENT OF ENERGY GRANT
FOR CLARK BATTERY-GRADE MANGANESE
South32
Limited (ASX / LSE / JSE: S32; ADR: SOUHY) (South32)
advises that our Hermosa project located in Arizona, United
States, has been selected for a US$166M award negotiation from the
US Department of Energy (DOE).
Hermosa's Clark deposit is currently the only
advanced project in the United States with a clear pathway to
produce battery-grade manganese from locally sourced ore for the
North American electric vehicle battery market.
The grant from the DOE's Battery Materials
Processing and Battery Manufacturing program will support the
potential development of a commercial-scale manganese production
facility. On a cost-share basis and subject to final negotiation,
the DOE will provide 30 per cent of the cost of the manganese
production facility, up to the grant award of US$166M.
While subject to further study, construction of
the facility and the development of Clark represents a significant
opportunity to establish a North American supply chain of
battery-grade manganese in a phased approach in line with market
development.
We are engaging potential customers to advance
product qualifications for battery manufacturing, including
potential agreements for future supply following the signing of
multiple non-binding Memorandums of Understanding.
Construction of a decline at Clark to enable
bulk sampling through a demonstration plant and further underground
exploration is underway, with decline access scheduled for the end
of CY25. The US Department of Defense is supporting
this work through a US$20M grant from the Defense
Production Act Investment Program.
South32 Chief
Executive Office Graham Kerr said, "We welcome
this grant from the US Department of Energy, which recognises
Clark's potential to supply battery-grade manganese to the emerging
North American market.
"Hermosa represents a regional scale project
with the potential to produce commodities critical to a low-carbon
future across multiple deposits for decades to come.
"Following final investment approval earlier in
the year, construction of our large-scale, long-life Taylor
zinc-lead-silver project is progressing as planned.
"Our investment in Taylor will unlock value for
future growth options, including Clark, by establishing significant
shared infrastructure.
"In addition to Taylor and Clark, we are
continuing further exploration programs at Peake to test the
potential for a continuous copper system connecting Peake and
Taylor."
About us
South32 is a globally diversified mining and
metals company. Our purpose is to make a difference by developing
natural resources, improving people's lives now and for generations
to come. We are trusted by our owners and partners to realise the
potential of their resources. We produce commodities including
bauxite, alumina, aluminium, copper, zinc, lead, silver, nickel and
manganese from our operations in Australia, Southern Africa and
South America. We also have a portfolio of high-quality development
projects and options, and exploration prospects, consistent with
our strategy to reshape our portfolio toward commodities that are
critical for a low-carbon future.
Further information on South32 can be found
at www.south32.net.
Approved for release
to the market by Graham Kerr, Chief Executive Officer
JSE Sponsor: The Standard Bank of South Africa Limited
20 September 2024
