REG - South32 Limited - US DOE Grant for Clark Battery-Grade Manganese

South32Announcement

23/09/2024 07:00

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RNS Number : 1413F  South32 Limited  23 September 2024

 

20 September 2024

 

 

South32 Limited

(Incorporated in Australia under the Corporations Act 2001 (Cth))

(ACN 093 732 597)

ASX / LSE / JSE Share Code: S32; ADR: SOUHY

ISIN: AU000000S320

south32.net

 

 

US DEPARTMENT OF ENERGY GRANT FOR CLARK BATTERY-GRADE MANGANESE

South32 Limited (ASX / LSE / JSE: S32; ADR: SOUHY) (South32) advises that our
Hermosa project located in Arizona, United States, has been selected for a
US$166M award negotiation from the US Department of Energy (DOE).

Hermosa's Clark deposit is currently the only advanced project in the United
States with a clear pathway to produce battery-grade manganese from locally
sourced ore for the North American electric vehicle battery market.

The grant from the DOE's Battery Materials Processing and Battery
Manufacturing program will support the potential development of a
commercial-scale manganese production facility. On a cost-share basis and
subject to final negotiation, the DOE will provide 30 per cent of the cost of
the manganese production facility, up to the grant award of US$166M.

While subject to further study, construction of the facility and the
development of Clark represents a significant opportunity to establish a North
American supply chain of battery-grade manganese in a phased approach in line
with market development.

We are engaging potential customers to advance product qualifications for
battery manufacturing, including potential agreements for future supply
following the signing of multiple non-binding Memorandums of Understanding.

Construction of a decline at Clark to enable bulk sampling through a
demonstration plant and further underground exploration is underway, with
decline access scheduled for the end of CY25. The US Department of Defense is
supporting this work through a US$20M grant from the Defense Production Act
Investment Program.

South32 Chief Executive Office Graham Kerr said, "We welcome this grant from
the US Department of Energy, which recognises Clark's potential to supply
battery-grade manganese to the emerging North American market.

"Hermosa represents a regional scale project with the potential to produce
commodities critical to a low-carbon future across multiple deposits for
decades to come.

"Following final investment approval earlier in the year, construction of our
large-scale, long-life Taylor zinc-lead-silver project is progressing as
planned.

"Our investment in Taylor will unlock value for future growth options,
including Clark, by establishing significant shared infrastructure.

"In addition to Taylor and Clark, we are continuing further exploration
programs at Peake to test the potential for a continuous copper system
connecting Peake and Taylor."

About us

South32 is a globally diversified mining and metals company. Our purpose is to
make a difference by developing natural resources, improving people's lives
now and for generations to come. We are trusted by our owners and partners to
realise the potential of their resources. We produce commodities including
bauxite, alumina, aluminium, copper, zinc, lead, silver, nickel and manganese
from our operations in Australia, Southern Africa and South America. We also
have a portfolio of high-quality development projects and options, and
exploration prospects, consistent with our strategy to reshape our portfolio
toward commodities that are critical for a low-carbon future.

 Investor Relations                                                         Media Relations
 Ben Baker                                                                  Jamie Macdonald

T          +61 8 9324 9363
T          +61 8 9324 9000

M        +61 403 763 086
M        +61 408 925 140
 E          Ben.Baker@south32.net (mailto:Ben.Baker@south32.net)
E          Jamie.Macdonald@south32.net
                                                                            (mailto:Jamie.Macdonald@south32.net)

Further information on South32 can be found at www.south32.net
(http://www.south32.net) .

Approved for release to the market by Graham Kerr, Chief Executive Officer

JSE Sponsor: The Standard Bank of South Africa Limited

20 September 2024

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