Name of the Project
Copper World Complex.

Location
Arizona, in the US.

Project Owner/s
Base metals miner Hudbay Minerals.

Project Description
The results of a September 2023 enhanced prefeasibility study (PFS) for Phase 1 of the project has significantly enhanced the economics and derisks the project through higher levels of engineering, a simplified project design, lower upfront capital expenditure and a longer mine life.

Copper World is planned to be a traditional openpit truck-and-shovel operation, with a conventional flotation concentrator producing copper concentrate and molybdenum concentrate, with an expansion of the processing facility to include a copper concentrate leach facility in Year 5, producing copper cathode and silver/gold doré.

The overall mining operation is expected to comprise four openpits in Phase 1.

The mine plan for Phase 1 is optimised solely on the flotation of copper sulphides and oxides.

Phase 1 envisages a standalone operation with a mine life of 20 years, four years longer than the Phase 1 mine life presented in the preliminary economic assessment (PEA) that was published in June 2022. This is owing to an increase in the capacity for tailings and waste deposition, as a result of optimising the site layout. 

The first phase of the project proposes average copper production of 85 000 t/y over the life-of-mine. 

A variable cutoff-grade strategy allows for higher mill head grades in the first ten years and increases production to about 92 000 t/y of copper.

Phase 2 is expected to involve an expansion onto federal lands, with an extended mine life and enhanced project economics. Phase 2 would be subject to the federal permitting process and has not been included in the PFS results. Phase 1 is a standalone operation requiring only state and local permits.

Potential Job Creation
Hudbay expects the project to create over 400 direct jobs and up to 3 000 indirect jobs.

The project is expected to contribute more than $850-million in US taxes over its initial 20-year mine life, including about $170-million to the state of Arizona. Hudbay plans to offer competitive wages and benefits and intends to partner with local apprenticeship readiness and workforce training programs to fill skilled and technical positions.

Net Present Value/Internal Rate of Return
Phase 1 has an estimated after-tax net present value, at an 8% discount rate, of $1.1-billion and an internal rate of return of 19.2%, with a payback of 5.9 years at $3.75/lb copper.

Capital Expenditure
Total initial capital costs are estimated at $1.3-billion for Phase 1, including all costs associated with the construction of the concentrator and associated infrastructure. 

Planned Start/End Date
Not stated.

Latest Developments
Hudbay has received an aquifer protection permit from the Arizona Department of Environmental Quality (ADEQ).

The permit, issued after a thorough process involving comprehensive data submission and public consultation, brings the project closer to becoming fully permitted.

The project aims to provide “Made-in-America” copper cathode, which will be sold entirely to domestic customers, making Copper World the third-biggest cathode producer in the US.

The aquifer protection permit is the second of three essential state-level permits required for the project's sanctioning. The mined land reclamation plan was previously approved, despite a legal challenge that was dismissed in May 2023. The final key permit, the air-quality permit, is subjected to a public comment period, which is expected to conclude this month.

With the receipt of the aquifer protection permit, Hudbay plans to begin feasibility studies, with an expected increase in 2024 growth capital spending in Arizona by an additional $25-million.

Hudbay is also expanding its team, in Arizona, to support the development of Copper World, with key appointments including Javier Del Rio as senior vice president (VP) of the US business unit and Warren Flannery as VP of Copper World. The company has also hired Robert Comer as executive director, external affairs and legal, bringing more than 30 years of US permitting and mining law experience to the project.

The company expects to sanction Copper World by early 2026, contingent on the successful completion of the permitting process and the evaluation of other investment opportunities as part of the group’s capital allocation strategy.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Hudbay Minerals, tel +1 416 362 8181 or email info@hudbayminerals.com.