Contributing social and economic value at Hermosa

In FY24, we announced a US$2.16 billion investment to develop the Taylor deposit, the largest private investment in southern Arizona's history. Construction is now underway, with first production expected in FY27.

Hermosa’s development will create significant employment opportunities in Santa Cruz County, where the average unemployment rate is nearly twice as high as the average for the state of Arizona. We are committed to developing a local workforce at Hermosa and have set a goal to have at least 80 per cent of our workforce living and working in Santa Cruz County, enabling downstream economic benefits to flow to the local region.

To help residents secure skilled jobs at Hermosa, we have established a dedicated Workforce Development Taskforce. The Taskforce will identify the skills needed and the local facilities available to help train, develop and expand the region’s workforce. We are also supporting educational programs and initiatives that encourage local school students to explore science, technology, education, and mathematics (STEM) disciplines.

We continue to consult proactively with local communities, including Native American tribes that have cultural ties to the project area, on opportunities for Hermosa to contribute social and economic value. Through our donor-advised South32 Hermosa Community Fund(12), we awarded US$120,000 in FY24 to not-for-profit organisations in Santa Cruz County with a focus on health and welfare, education, the arts and recreation. Since its inception in 2019, the South32 Hermosa Community Fund has awarded more than US$1 million in grants to more than 50 local not-for-profit organisations.

Projected economic contributions from Taylor's development

Over the four-year construction period (FY24 to FY27):

• Support an annual average of 2,028 jobs in Arizona, including over 1,000 workers directly employed by the mine's construction in Santa Cruz County;
• Contribute an estimated US$678 million to Arizona's economy, including US$288 million to Santa Cruz County directly; and
• Generate US$15 million of new tax revenue for Santa Cruz County, an additional US$5.3 million for other local governments and increase the state of Arizona's tax collections by US$61 million.

During a typical year of operation:

• Support more than 2,300 jobs in Arizona, including over 1,500 jobs in Santa Cruz County directly;
• Contribute an estimated US$538 million to Arizona's overall economy, with US$410 million benefiting Santa Cruz County directly; and
• Generate an additional US$37 million of taxes annually for the state of Arizona and its local governments. Of this, almost half (US$15 million) will be received by Santa Cruz County directly.