South32 invests $2.2B in Patagonia for critical zinc and manganese mining projects

In a pivotal meeting held on March 5, 2025, the City of Nogales, Arizona, was abuzz with discussions surrounding the significant developments in local mining operations, particularly focusing on the manganese and zinc deposits located just south of Patagonia. The meeting highlighted a monumental commitment from South32, a mining company, to invest $2.2 billion over the next three years to bring the zinc deposit into production, marking it as one of the largest private investments in southern Arizona's history.

The zinc deposit, currently under construction, is poised to play a crucial role in addressing the United States' reliance on foreign sources for critical minerals. With the nation producing only 6% of the world's zinc, the project aims to mitigate national security risks associated with this dependency. The manganese deposit, which is still in the pre-feasibility phase, is expected to be the only fully integrated source of manganese in North America, essential for lithium-ion batteries.

As the meeting unfolded, attendees learned about the project's ambitious plans for sustainability. South32 aims to disturb 95% less land and use 90% less water than traditional mining operations, with a goal of achieving net-zero greenhouse gas emissions. This commitment to environmental stewardship is coupled with a robust workforce development strategy, ensuring that at least 80% of the long-term workforce will be local residents from Santa Cruz County. Training programs are set to begin later this year, focusing on equipping the community with the necessary skills for high-tech mining jobs.

The economic implications of the project are substantial. It is projected to create between 800 to 900 direct jobs, with an estimated total of 2,400 jobs when considering indirect and induced employment. The anticipated annual labor income generated by the project is expected to reach $200 million, significantly impacting the local economy. Additionally, the project will contribute approximately $26 million annually in taxes to Santa Cruz County, nearly doubling the current property tax intake.

Community engagement remains a priority for South32, as they work on a community protection and benefits agreement with local stakeholders. Public meetings are scheduled to gather input from residents, ensuring that their concerns and interests are addressed in the development process.

As the meeting concluded, the excitement surrounding the potential of the manganese and zinc deposits was palpable. With the promise of economic growth, job creation, and a commitment to sustainability, the future of Nogales and its surrounding communities appears bright, as they stand on the brink of a new era in mining and resource management.