Mining Engineering’s Weekly Rundown: Episode 60

First, South32’s Hermosa project in southern Arizona cleared a major federal permitting milestone after the U.S. Forest Service issued its Final Record of Decision. The decision completes the National Environmental Policy Act, or NEPA, review for infrastructure planned on National Forest System land, allowing South32 to move forward with construction beyond its privately owned property. The approval covers infrastructure including a primary access road, a dry-stack tailings facility and a portion of a new power line. Hermosa is an advanced mining project capable of producing up to five federally designated critical minerals, including zinc, silver and manganese. The project was the first mining development accepted into the federal FAST-41 permitting program, and South32 said construction on private land is already about halfway complete. Company officials said the federal review included years of environmental studies, public comment, Tribal consultation and coordination among multiple state and federal agencies.

Next, JPMorgan lowered its outlook for gold prices this year, citing weaker-than-expected demand from key sectors and the possibility of earlier U.S. interest rate hikes if economic data remains strong. The bank now expects gold to average about $4,300 per ounce during the third quarter and rise to $4,500 per ounce in the fourth quarter. Just one month ago, JPMorgan forecast gold would reach $6,000 by the end of the year. Higher interest rates generally reduce demand for gold because the metal does not generate interest or dividend income. Despite lowering its near-term forecast, the bank maintained a bullish long-term outlook, expecting central bank purchases and physical demand to support prices in 2027. JPMorgan also projected silver to average between $60 and $65 per ounce over its forecast period, while platinum and palladium prices are expected to strengthen as supply conditions tighten.

Finally, the United States is placing greater emphasis on securing critical minerals from the Pacific. Newly appointed U.S. Ambassador Jared Novelly said seabed minerals in the Cook Islands have become one of his top priorities as Washington works to reduce its reliance on China-dominated supply chains. The Cook Islands contain significant deposits of polymetallic nodules that are rich in metals used in batteries and other advanced technologies. While the country has approved exploration activities, it has not authorized commercial mining. Earlier this year, the U.S. and the Cook Islands signed a non-binding framework to cooperate on critical minerals research and supply chain security, while the Cook Islands also maintains an exploration and research agreement with China. Novelly said he plans to introduce U.S. companies that could support future mineral development.

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