A zinc mine in Arizona became the proof of concept for a new permitting shortcut in the US
The US Forest Service approved South32's mine plan for the Hermosa project — one of the world's largest undeveloped zinc deposits — under the federal FAST-41 program, created to coordinate and speed up permitting for critical infrastructure projects.
- The US Forest Service approved South32's mine plan for the Hermosa project in Arizona on September 2, 2026 — a zinc, manganese, lead and silver deposit valued at over US$3 billion.
- Hermosa was the first mining project included in the federal FAST-41 program, created in 2023 to coordinate permitting among agencies for infrastructure projects considered strategic for the country.
- The approval came about two months ahead of the legal deadline and covered infrastructure crossing public land: a high-voltage transmission line, a second access road, a tailings storage facility and water discharge points.
- Underground zinc production is expected in 2027, with the processing plant starting up in early 2028 — while half the construction on private land was already complete even before this federal approval.
The US Forest Service approved South32's mine plan for the Hermosa project on September 2, 2026, in the Patagonia Mountains of southern Arizona. Hermosa hosts one of the world's largest undeveloped zinc deposits, plus a battery-grade manganese deposit and the emerging Peak copper discovery — all five minerals in the project (zinc, manganese, silver, lead and copper) are on the US federal critical minerals list. The approval covered infrastructure crossing federally managed public land: a high-voltage transmission line, a second access road, a tailings storage facility and water discharge points — and came about two months ahead of the deadline set by federal environmental law, under an expedited review process.
What makes Hermosa a case study isn't geological, it's regulatory: the project was the first mining venture included in FAST-41, a federal program created in 2023 to coordinate permitting for infrastructure projects deemed strategic among the various agencies that need to weigh in. It's important to understand what FAST-41 doesn't do: it doesn't eliminate any step of the legally required environmental review, nor does it waive impact studies. What it does is create a public, coordinated timeline with defined deadlines among the federal agencies involved — reducing uncertainty about when the decision comes out, not about whether it comes out. That difference matters because timeline uncertainty is itself a cost: projects that don't know when they'll be approved carry a higher risk premium in their cost of capital, making financing more expensive even before the first shovel hits the ground. South32 also used a phasing strategy to reduce its exposure to that risk: the half of construction that occurs on private land was already complete even before federal approval of the portion crossing public land, letting the company advance its timeline without depending entirely on the more uncertain regulatory outcome.
Hermosa becomes the practical reference that coordinated permitting — without cutting any environmental review steps — can significantly shorten the time between the discovery of a critical deposit and its entry into production, at a moment when the United States is trying to reduce dependence on supply chains controlled by China for battery minerals and energy-transition electronics. For anyone assessing regulatory risk in mining projects, the case shows that the variable that most affects cost of capital isn't always uncertainty over whether a permit will be approved, but over when — and that coordination mechanisms with a public timeline, like FAST-41, are a replicable public policy tool for other countries competing for the same critical minerals investment capital.
What did we learn?
- FAST-41 doesn't eliminate any step of US environmental permitting — it creates a public, coordinated timeline among federal agencies, reducing uncertainty about when the decision comes out, not whether it does.
- Hermosa already had half of its private-land construction complete even before federal approval of the public-land portion — a phasing approach that reduces exposure to regulatory risk.
- A predictable permitting timeline lowers the risk premium built into the cost of capital for critical minerals projects, making them easier to finance.
Skills Radar
- Permitting and compliance★★★★★
- Project risk management★★★★★
- Critical minerals policy★★★★★
Skills Developed
- Mining environmental permitting
- Regulatory risk management
- Critical minerals
Upward trend
With geopolitical competition over critical minerals intensifying, more countries are likely to create coordinated, timeline-bound permitting mechanisms to attract domestic mining investment without giving up environmental review.
Who is this content useful for?
- Managers
- Executives
- Engineers
- Researchers
- Companies
To go deeper on this topic
Worth pursuing training in:
- Environmental engineering
- Mining law
- Public administration
- Mining engineering


