Hudbay issues Copper World PFS

The project has a simplified flow sheet including a 60,000tpd sulphide concentrator to produce copper concentrate as a final product until the addition of a concentrate leach facility and a SX-EW plant in year five which will allow the production of copper cathodes.Copper World would produce an average of 85,300tpa of copper at a cash cost of US$1.47/lb for 20 years, including 92,000tpa of copper over the first 10 years.The project would yield an after-tax net present value of $1.1 billion at an 8% discount rate and a 19% internal rate of return using a copper price assumption of $3.75/lb following an initial capital cost of $1.3 billion or $1.1 billion net of an existing stream agreement."The PFS for phase one of Copper World significantly enhances the economics and de-risks the project through higher levels of engineering, a simplified project design, lower upfront capex and a longer mine life," said Hudbay Minerals' chief executive Peter Kukielski.The previous PEA featured a 16-year mine life and $1.9 billion initial capital cost. The new PFS sees the deferral of the construction of a concentrate leach facility to year four with the potential to be funded from operating cash flows and possible future government incentives for critical minerals processing.An increased capacity for tailings and waste deposition resulting from site layout optimisation has enabled Hudbay to expand the phase one mine life.A second phase would involve an expansion onto federal lands, subject to the federal permitting process. While this would further extend the mine life and enhance project economics, phase two has not been included in the PFS.Hudbay said it has identified opportunities to enhance project economics further, reduce environmental impacts, increase annual production and extend mine life, including increasing the concentrate leach capacity, federal funding incentives, the earlier receipt of federal permits for the phase two expansion and emission reduction opportunities including the use of autonomous or electric haul trucks.Copper World hosts proven and probable mineral reserves of 385Mt grading 0.54% copper. Its global measured and indicated mineral resources, which include reserves, are 1.2Bt grading 0.42% copper.PermittingWith phase one being on state land, Hudbay anticipates a simplified permitting process for phase one. In July 2022, it received approval from the Arizona State Mine Inspector for its amended Mined Land Reclamation Plan, the first key state permit required. This approval was challenged in state court, but this was dismissed in May as having no basis.In late 2022, Hudbay submitted the applications for an Aquifer Protection Permit and an Air Quality Permit to the Arizona Department of Environmental Quality. The company expects to receive these two outstanding state permits in mid-2024.Hudbay said the permitting scenario for the future phase two possible development has seen positive developments. In May, the US Supreme Court issued a favourable decision in the case of Sackett v EPA that clarified the definition of "Waters of the US" and rejected the "significant nexus" test that agencies had previously used to assert jurisdiction over relatively remote dry washes like those at the Copper World site.This decision strengthens Hudbay's position that no 404 Permit or other Clean Water Act approvals are required for the Copper World project.Also in May, Hudbay received a favourable ruling from the US Court of Appeals for the Ninth Circuit that reversed the US Fish and Wildlife Service's designation of the Copper World area as jaguar critical habitat.Hudbay detailed some prerequisites for an eventual Copper World financing decision. These include the completion of a feasibility study with an IRR of more than 15%, a committed minority joint venture partner, a renegotiated precious metals stream agreement, a net debt to EBITDA ratio of less than 1.2 times, a minimum cash balance of $600 million and a limited non-recourse project level debt of up to $500 million.The company intends to complete a minority JV partner process after receiving permits and prior to commencing a feasibility study.

ABOUT

SOLUTIONS

LEGAL

SOCIAL

BASE METALS

Hudbay issues Copper World PFS

Already have an account? Sign in here

MORE ON THIS TOPIC

FROM OUR PARTNERS

RESOURCE STOCKS

Forsys Metals' pipeline of catalysts to excite the market

RESOURCE STOCKS

The largest mineable measured uranium deposit in the USA

MOST POPULAR

MINERS

Anglo American shares tumble on planned production cuts

MINER'S RIGHT

Iron ore's unexpected boom rumbles on, defying experts

ESG

WATCH: What do American college students think about mining?

LATIN AMERICA

Lumina's Cangrejos a big beast

RESEARCH

Premium subscribers only

View more

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

Mining Journal Intelligence Mining Equities Report 2023

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Mining Journal Intelligence Project Pipeline Handbook 2023

THE ASPERMONT BRAND PORTFOLIO

Login

Not a Subscriber?

Subscribe Now