Hudbay Receives Key Aquifer Protection Permit for Copper World
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Hudbay Receives Aquifer Protection Permit for Copper World
Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) is pleased to announce that it has received an Aquifer Protection Permit for the Copper World project (“Copper World”) from the Arizona Department of Environmental Quality. The company proactively engaged with the ADEQ, ensuring a transparent and thorough permitting process by providing comprehensive and detailed information. The issuance of this permit is a key milestone in the advancement of Copper World, which is a standalone operation requiring state and local permits and is expected to produce 85,000 tonnes of copper per year over a 20-year mine life.
“Receiving the Aquifer Protection Permit is a significant de-risking event for Copper World as it brings us one step closer to being fully permitted,” said Peter Kukielski, President and Chief Executive Officer. “The last key state-level permit, the Air Quality Permit, continues to progress as planned and will mark the completion of one of the three key prerequisites in the company’s prudent sanctioning plan for the project. Copper World represents Hudbay’s next significant copper growth project and is expected to increase consolidated annual copper production by more than 50% from current levels. Copper World will also be a key contributor to the domestic U.S. supply chain with our plans to produce Made-in-America copper.”
Significance of Copper World
Once in production, Copper World is expected to play a vital role in fulfilling the U.S. domestic copper supply chain, crucial for meeting the increasing metal demand stemming from enhanced manufacturing capacities, infrastructure development, energy independence, and battery supply chain needs. The “Made-in-America” copper cathode anticipated to be produced at Copper World will be sold entirely to domestic customers, positioning Copper World as the third largest producer of cathode copper in the U.S.
Copper World Permitting Progress
There are three essential state permits required for Copper World sanctioning:
- Mined Land Reclamation Plan – Completed – This plan was initially approved by the Arizona State Mine Inspector and has since been amended to reflect a larger project footprint. Approval was challenged in state court but ultimately dismissed.
- Aquifer Protection Permit – Completed – Received by Hudbay following a detailed analysis by the ADEQ, along with a public comment period that conformed to procedural standards.
- Air Quality Permit – On Track – The Air Quality Permit application is in progress, reinforcing the thorough approach to permitting.
Hudbay is encouraged by the local support received during the public comment meetings and aims to deliver substantial social and environmental benefits for the Arizona community and economy. Over the projected 20-year mine life, Hudbay anticipates contributing more than $850 million in taxes, including approximately $170 million to state authorities. Additionally, Copper World is expected to create over 400 direct jobs and up to 3,000 indirect jobs, supporting local economic growth through competitive wages and benefits.
Hudbay's Financing Strategy
In October 2022, Hudbay introduced a disciplined financial planning approach featuring three prerequisite components – permits, a detailed feasibility study with an internal rate of return exceeding 15%, and a prudent financing strategy. This strategy involves securing a committed minority joint venture partner capable of funding, alongside optimizing agreements relevant to current project needs.
Hudbay’s financial discipline reflects in its operations, as evidenced by the generation of $824 million in Adjusted EBITDA and a considerable net debt reduction of $559 million. Such measures have led to a significantly improved net debt to adjusted EBITDA ratio of 0.8x, advancing Hudbay’s progress towards project sanctioning for Copper World.
Developments in the Arizona Team
With the project’s advancement, Hudbay continues to enhance its local Arizona team, appointing capable leaders to essential roles. Hudbay’s Senior Vice President of U.S. Business Unit, Javier Del Rio, now focuses entirely on guiding the Copper World project, utilizing extensive experience from overseeing Hudbay’s operations in South America. Furthermore, Warren Flannery has transitioned to Arizona to assume the Vice President position for Copper World, leading operational readiness efforts as early feasibility work unfolds.
Hudbay’s talent expansion includes hiring Robert Comer as Executive Director for External Affairs & Legal, bringing over 30 years of experience in permitting and mining law to the team.
About Hudbay Minerals
Hudbay Minerals Inc. (TSX, NYSE: HBM) is a copper-focused mining company operating three long-life mines and boasting a world-class portfolio of growth projects located in some of the most resource-rich regions of Canada, Peru, and the U.S. The company’s initiatives and progress towards the Copper World project reflect its dedication to addressing the minerals essential for future demands, while adhering to sustainable and responsible practices.
For further information, please contact:
Candace Brûlé
Vice President, Investor Relations
(416) 814-4387
investor.relations@hudbay.com
Frequently Asked Questions
What is the significance of the Aquifer Protection Permit for Hudbay?
The Aquifer Protection Permit represents a crucial milestone in the permitting process for the Copper World project, advancing it towards full operational readiness.
How much copper is Copper World expected to produce annually?
Copper World is projected to produce approximately 85,000 tonnes of copper each year over a lifespan of 20 years.
What economic contributions are expected from Copper World?
Copper World is anticipated to contribute over $850 million in taxes to the U.S. economy, with significant job creation in Arizona.
Who is leading the Copper World project at Hudbay?
Javier Del Rio is currently leading the Copper World project, drawing upon his extensive project development experience.
When is Hudbay expected to sanction the Copper World project?
The project is not expected to be sanctioned until early 2026, subject to securing necessary permits and financing.
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