South32 has reached an important milestone for our Hermosa project, located in Arizona in USA, with the publication of results from the pre-feasibility study for the Taylor Deposit, the first development option at the project. The results demonstrate that Taylor has the potential to be a sustainable, highly productive zinc-lead-silver underground mine with a conventional processing plant. It is being designed as first next generation mine, using automation and technology to minimize impact on the environment and to target a carbon neutral mine in line with goal of achieving net zero operational carbon emissions by 2050.The dual shaft design for Taylor prioritises higher grade ore in the early years, while the orebody geometry enables multiple concurrent areas to be mined. The current 138Mt Mineral Resource supports an initial mine life of more than 20 years, with potential for further life extension based on the exploration target for the resource.The potential development of Taylor would be the first stage in realising Hermosa’s full potential. Beyond Taylor South32 has completed a scoping study for the Clark Deposit, which has potential to underpin a second stage of development at Hermosa with a separate, integrated mining operation producing battery-grade manganese – a critical mineral in the United States. South32 has commenced a pre-feasibility study at Clark and South32 is also reviewing the potential to pursue an integrated development with Taylor.