Hudbay Secures Aquifer Protection Permit for Copper World
Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) is excited to share that it has obtained an Aquifer Protection Permit for the Copper World project (“Copper World”) from the Arizona Department of Environmental Quality. The company took proactive steps to engage with the ADEQ, ensuring a clear and thorough permitting process by providing detailed and comprehensive information. This permit marks a significant milestone in the progress of Copper World, which is a standalone operation that requires both state and local permits, and is anticipated to produce 85,000 tonnes of copper annually over a mine life of 20 years.
“Receiving the Aquifer Protection Permit is a major step in de-risking Copper World as it brings us closer to being fully permitted,” stated Peter Kukielski, President and Chief Executive Officer. “The final state-level permit we need, the Air Quality Permit, is moving forward as expected and will complete one of the three key prerequisites in our careful sanctioning plan for the project. Copper World is a pivotal copper growth initiative for Hudbay and is projected to boost our consolidated annual copper output by over 50% from current levels. Additionally, Copper World will significantly contribute to the domestic U.S. supply chain with our plans to produce Made-in-America copper.”
The Importance of Copper World
Once operational, Copper World is set to play a crucial role in meeting the U.S. domestic copper supply needs, which are increasingly important due to rising metal demand from enhanced manufacturing capabilities, infrastructure projects, energy independence, and the battery supply chain. The “Made-in-America” copper cathode expected to be produced at Copper World will be sold exclusively to domestic customers, positioning it as the third-largest producer of cathode copper in the U.S.
Permitting Progress for Copper World
There are three critical state permits necessary for the sanctioning of Copper World:
- Mined Land Reclamation Plan – Completed – Initially approved by the Arizona State Mine Inspector, this plan has been amended to reflect an expanded project footprint. Although approval was challenged in state court, the challenge was ultimately dismissed.
- Aquifer Protection Permit – Completed – This permit was granted to Hudbay following a thorough review by the ADEQ, which included a public comment period that adhered to all procedural standards.
- Air Quality Permit – On Track – The application for the Air Quality Permit is progressing, reinforcing our commitment to a comprehensive permitting process.
Hudbay is heartened by the local support received during the public comment meetings and is dedicated to providing significant social and environmental benefits to the Arizona community and economy. Over the anticipated 20-year mine life, Hudbay expects to contribute more than $850 million in taxes, including around $170 million to state authorities. Furthermore, Copper World is projected to create over 400 direct jobs and up to 3,000 indirect jobs, fostering local economic growth through competitive wages and benefits.
Hudbay's Financial Strategy
In October 2022, Hudbay implemented a disciplined financial planning strategy that includes three essential components: securing permits, conducting a detailed feasibility study with an internal rate of return exceeding 15%, and establishing a prudent financing strategy. This approach focuses on finding a committed minority joint venture partner capable of providing funding, while also optimizing agreements related to current project needs.
Hudbay’s financial discipline is evident in its operations, highlighted by the generation of $824 million in Adjusted EBITDA and a substantial reduction in net debt of $559 million. These efforts have resulted in a significantly improved net debt to adjusted EBITDA ratio of 0.8x, furthering Hudbay’s progress toward project sanctioning for Copper World.
Updates on the Arizona Team
As the project advances, Hudbay is enhancing its local Arizona team by appointing skilled leaders to key positions. Javier Del Rio, Hudbay’s Senior Vice President of U.S. Business Unit, is now fully dedicated to guiding the Copper World project, leveraging his extensive experience from overseeing Hudbay’s operations in South America. Additionally, Warren Flannery has relocated to Arizona to take on the role of Vice President for Copper World, where he will lead operational readiness efforts as early feasibility work begins.
Hudbay’s talent expansion also includes the hiring of Robert Comer as Executive Director for External Affairs & Legal, who brings over 30 years of experience in permitting and mining law to the team.
About Hudbay Minerals
Hudbay Minerals Inc. (TSX, NYSE: HBM) is a mining company focused on copper, operating three long-life mines and boasting a world-class portfolio of growth projects in some of the most resource-rich areas of Canada, Peru, and the U.S. The company’s initiatives and progress toward the Copper World project reflect its commitment to addressing the minerals essential for future demands while adhering to sustainable and responsible practices.
For more 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 is a key milestone in the permitting process for the Copper World project, moving it closer to full operational readiness.
How much copper is Copper World expected to produce annually?
Copper World is projected to produce around 85,000 tonnes of copper each year over its 20-year lifespan.
What economic contributions are expected from Copper World?
Copper World is anticipated to generate over $850 million in taxes for the U.S. economy, along with significant job creation in Arizona.
Who is leading the Copper World project at Hudbay?
Javier Del Rio is currently at the helm of the Copper World project, utilizing his extensive experience in project development.
When is Hudbay expected to sanction the Copper World project?
The project is not expected to be sanctioned until early 2026, contingent upon securing the necessary permits and financing.
