Security
Hermosa has the potential to strengthen the domestic supply chain of five minerals designated as critical by the federal government – including zinc and manganese.
PUTTING ARIZONA IN THE DRIVER’S SEAT OF SECURITY
Hermosa is home to five federally designated critical minerals – zinc, manganese, copper, silver, and lead – needed to power the nation’s energy future. The United States is currently highly reliant on imports and overseas supply chains for these resources.
Spotlight on the zinc gap
The critical mineral supply-demand discussion often overlooks the rapidly growing zinc gap. Demand will outpace production in similar magnitude to copper.
The US produces only six percent of the world’s zinc and is highly reliant on China and Peru.
Hermosa includes one of the world’s largest undeveloped zinc resources and it is the only major global zinc discovery made in the last 15 years.
The equivalent of three Hermosa zinc-sized projects would need to be developed each year until 2034 to meet projected global demand.
Recycling has an important role to play, but recycling rates are currently very low – around 34% for zinc. Experts agree: Even high rates of recycling would not create enough supply to meet global demand.
What Hermosa powers
Hermosa is one of world’s largest undeveloped zinc resources.
Zinc is best known for its ability to galvanize steel, making it an essential ingredient for infrastructure and equipment routinely exposed to the elements.
By 2030, there will be a silver supply shortfall without new capacity.
Silver’s combination of high electrical and thermal conductivity, reflectivity, and antimicrobial properties make it irreplaceable in many high-tech and energy applications.
Lead's unique physical properties, particularly its density and conductivity, secure its place in many high-tech and safety-critical applications.
Hermosa could produce enough battery-grade manganese to supply domestic demand.
Manganese is an irreplaceable ingredient in steel production. It can also lower costs, improve performance and enhance safety for high-performance lithium-ion batteries.
Hermosa also contains copper. Studies are underway, and drilling supports a continuous copper system beneath the existing deposits, creating the potential to use existing infrastructure and provide optionality.
Copper is vital for energy, construction, transport, electronics, and AI.
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