South32’s Hermosa zinc-silver project in southern Arizona received its final federal Record of Decision in early July, completing the FAST-41 permitting process. The approval covers public-land infrastructure, including a high-voltage transmission line, a second access road, tailings facilities and water-discharge points. The mine itself had already received Arizona state approval, with construction on private land about halfway complete. Hermosa hosts a major undeveloped zinc deposit, alongside a battery-grade manganese deposit and the emerging Peak copper discovery. Construction costs have risen above $2 billion amid inflation, materials, labour and contractor pressures, although South32 says most remaining work is now contracted. Both production shafts are expected to reach final depth before year-end; underground mining is scheduled for late 2027 and first production is targeted for early 2028. These remain planned milestones subject to project execution.

South32 reported that its FY2026 aluminum production exceeded previous guidance by 1%, while alumina output met expectations. Brazil aluminum production increased 4.3% YoY to 144,000 tonnes as all three potlines ramped up, while Brazil alumina production rose 5.3% YoY to 1.4 million tonnes. The company also reaffirmed its US$5.6 billion agreement to sell its aluminum business to Alcoa, with the transaction expected to close in H2 2027.

[SMM Aluminum Express News] Mozambique generated €317.3 million in aluminum export revenue during the first half of 2026 before the closure of the Mozal aluminium smelter in March, according to data from the Bank of Mozambique. Despite the shutdown, aluminum remained the country's second-largest export, accounting for 14.6% of total export earnings during the period. The suspension of Mozal, triggered by the expiry of its power supply agreement, is expected to weigh on Mozambique's export performance for the remainder of 2026. Mozal, operated by South32, is Africa's second-largest aluminum smelter with annual production capacity of around 580,000 tonnes.

South32 reported payable copper production of 16,000 tonnes from its 45% interest in the Sierra Gorda mine in Chile for the quarter ended June 30, down 9.6% year-on-year and below market expectations of 17,500 tonnes. Mining operations at the project continued to be affected by heavy rainfall, which had previously disrupted access to mining areas and temporarily suspended processing operations. The company also expects Sierra Gorda's FY2027 operating unit costs to be about 10% higher than FY2026 guidance due to a previously announced one-off workforce payment and higher diesel prices. In addition, the joint venture recently approved a fourth grinding line expansion, with approximately US$725 million of growth capital expenditure planned between 2027 and 2030 to increase processing capacity by around 25%.

The US Forest Service is expected to approve South32’s Hermosa Critical Minerals Project in Arizona. The project, which has received fast-track permitting status from the US government, is set to become the first mining project approved under the Agriculture Department’s expedited review process. Located near the US-Mexico border in southern Arizona, the Hermosa project represents an investment of approximately US$2 billion and hosts one of the world’s largest undeveloped zinc deposits, along with manganese and other critical minerals. US officials said the project will help strengthen domestic critical mineral supply chains and reduce reliance on foreign sources of processed metals. South32 expects Hermosa to reach full production by 2029, providing a significant new source of zinc supply for the US market.

Every major aluminum player made a rational bet in H1 2026, Indonesia's smelter wave, the US's Inola project, India's Adani-IHC deal, Alcoa's South32 buy, the Gulf's post-strike rebuild, none of it needing the Middle East war to justify itself, though the war's price spike (LME to $3,546, premiums to multi-year highs) accelerated all of it at once.

South32 Ltd. (S32.AU) will sell aluminum assets to Alcoa, in a deal valued at up to $5.6 billion.

On July 1, Alcoa agreed to acquire South32’s bauxite, alumina, and aluminum assets in a deal valued at up to $5.6 billion, solidifying its position as a top producer. Alcoa’s CEO said the transaction expands the scale of the company’s smelting operations and is expected to immediately increase cash flow. The deal is expected to be completed in H1 2027, subject to shareholder and regulatory approvals.

Diversified mining company South32 announced that the fourth grinding line project at the Sierra Gorda open-pit copper mine has received final investment approval following completion of a feasibility study. The study confirmed that this brownfield plant expansion project is expected to deliver attractive returns. By installing a fourth grinding line, expanding crushing and flotation capacity and associated process infrastructure, the project is expected to increase Sierra Gorda mine’s annual processing capacity from 48 million mt to 60 million mt. Sierra Gorda is a large-scale conventional open-pit copper mine located in the Antofagasta region of northern Chile. South32 holds a 45% stake in the mine, with KGHM holding the remaining 55%. The project is expected to achieve first production in FY2030 and reach full capacity in FY2031.

South32 has agreed to sell most of its aluminium assets to Alcoa for an implied enterprise value of up to US$5.6 billion, as the company shifts its focus toward copper and higher-margin base metals. Separately, its Sierra Gorda copper joint venture in Chile approved a US$725 million fourth grinding line expansion, expected to lift processing capacity by around 25% from 2027 to 2030.