GK spoke at the Melbourne Mining Club yesterday. The AFR report...

GK spoke at the Melbourne Mining Club yesterday. The AFR report was half about 'green aluminium', then this, on Hermosa:


Mr Kerr joined BHP’s calls for the Australian government to compete with the enticements on offer from the United States under the colossal Inflation Reduction Act to attract and capitalise on global demand for metals crucial for the green transition.

He said it was ‘‘far easier to invest in the USA than Australia’’ thanks to the IRA. The new law – which favours companies from the US and allied nations to cut out China – provides grants and tax breaks to entice US-aligned battery mineral mining and green manufacturing.

Mr Kerr said South32 aims to take advantage of the grants and loans on offer to explore its Clark deposit of zinc, manganese and silver oxide in the United States.‘‘We’ll probably try and tap some of that money. Typically, it’s been about a third of the capital they’ll cover, and it’s generally been not as a loan but as the grant.’’

Mr Kerr also flagged the pool cash available under the IRA via the US Department of Energy to build processing facilities to bring battery mining and processing on-shore, but said South32 wouldn’t fully seek to tilt towards down-stream mineral processing.

‘‘We would probably look at [producing] high-purity manganese sulfate. That’s the product we’d be looking to produce. We wouldn’t go too much further than the battery chain from that.’’

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I have been rabbitting on about this potential US government assistance for ages.

A third of the capital cost of Clark - as a grant.

I am sure holders will find that very welcome. Potentially worth billions, yes billions - in capital saved, greater capacity to bear debt and in reduced risk.

Taylor might find it harder to gain government support, though Zn is on the Critical Minerals List.

Elsewhere, M&A on S32's very strong balance sheet becomes a lot easier - if S32 can find a suitable asset!

Ash