Hudbay is working to complete a feasibility study for Copper World next year, with a construction decision to follow in 2026.
The “Made-in-America” copper cathode produced at Copper World would be sold to domestic U.S. customers and would make Copper World the third largest cathode producer in the country.
“As the world moves towards a renewable energy future, copper plays a critical role of the green revolution,” said Hudbay president and CEO Peter Kukielski. “At Hudbay, we’re committed to contributing to a low-carbon future, and our vision for sustainable, responsible mining spans all our operations.”
Kukielski noted he is optimistic about copper prices and demand.
“Hudbay’s expanded copper production, mainly through Copper World, will help meet soaring global demand for copper while simultaneously supporting U.S. energy independence and reducing environmental impact,” he said.
What sets Hudbay apart from other companies telling a similar story is its strategic position with a solid operating base of three long-life producing mines in tier-one jurisdictions and a robust project pipeline in the Americas, Kukielski said. “Our portfolio generates the highest increase in net asset value with rising copper prices amongst our peers as a result of our unique copper growth pipeline.”
Copper World, located in the Santa Rita Mountains 45 km southeast of Tucson, is a skarn and porphyry hosted deposit associated with Laramide-age intrusions in the Arizona Copper Belt. The project is well located, with nearby infrastructure that includes major transportation corridors and power lines.
With reserves of 385 million tonnes grading 0.54% copper, it is the highest-grade copper deposit in the Americas at the prefeasibility or feasibility stage, Kukielski said. Gold and silver byproducts will fortify Copper World’s economics.
Not just about EVs
“The transition to green energy, including wind and solar power, requires substantial amounts of copper,” Kukielski said.
“We’re also seeing increased demand in infrastructure development, manufacturing and from the significant use of copper in artificial intelligence data centres. It’s not just about electric vehicles, but an entire ecosystem of technologies and infrastructure needed for a sustainable future.”
All Hudbay assets are located in tier-one jurisdictions in the Americas with strong rule of law aligned with high sustainability standards, he said.
“Our current design for Copper World contemplates the production of on-site copper cathode, which will reduce energy consumption and downstream GHG emissions by eliminating overseas shipping, smelting and refining,” Kukielski said, noting Copper World is expected to increase Hudbay’s consolidated copper production by more than 50% from current levels.
The company, which has recently commissioned several pieces of electric equipment at its Copper Mountain mine in B.C. and its Snow Lake operations in Manitoba, is also exploring the potential use of autonomous or electric haul trucks in the operations at Copper World.
Arizona remains one of the most favourable jurisdictions for mining in the U.S., with a strong history of mineral extraction, a highly skilled workforce, and a well-established regulatory framework, said Javier Del Rio, Hudbay’s U.S. business unit senior vice-president.
The company expects Copper World will create 400 direct jobs once the mine is operational, and up to 3,000 more indirect jobs in supporting industries.
Del Rio said Hudbay has received positive feedback from local government, unions and many local residents about those benefits.
“That said, we remain committed to ongoing, open dialogue with all stakeholders,” he added.
Hudbay has been completing significant test work on concentrate leach technology over the past several years, a technology used in its Manitoba operations for 25 years on zinc concentrate.
“Given Copper World will produce copper concentrate, the test work was an important step in our engineering work and has yielded positive results,” Del Rio said, noting the resulting product from the concentrate leach facility is copper cathode.
Copper World is subject to Arizona’s state permitting process, which includes the requirement that mines meet the state’s water quality standards, Del Rio said.
“Our goal for Copper World is to be a net-neutral water user by recharging 100% of the water we pump from the aquifer during production.”
In August, Hudbay received the Aquifer Protection Permit from the Arizona Department of Environmental Quality. The miner is on track to obtain the Air Quality Permit by the end of 2024, the final key state-level permit for the project.
Based on current timelines, Hudbay could sanction the development of Copper World in 2026.
Kukielski noted the company’s taken steps to strengthen its balance sheet and reduce its net debt position.
“Our current financing strategy will allow us to prudently fund the development of Copper World, and will set up the foundation for a long-life, low-cost operation that will generate significant value for our shareholders and the local community,” he said.
The preceding Joint Venture Article is PROMOTED CONTENT sponsored by Hudbay Minerals and produced in co-operation with The Northern Miner. Visit: www.hudbayminerals.com for more information.
