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 Minerals has reached an agreement with a coalition of union building trades to support the construction of the mine.

The agreement, formalised through a letter of commitment, gives union contractors a substantial role in the building of the project. 

The letter was signed by seven union organisations, including the International Brotherhood of Boilermakers Local 627, IBEW Local 570 and the Western States Regional Council of Carpenters, on April 11.

“The expertise and dedication of our local trade unions are vital to the success of large-scale projects . . . and we are pleased to have their highly skilled workforce as a key component of our construction team,” senior VP of Hudbay’s US business unit Javier Del Rio has said. 

 “The timely and efficient construction . . . will require a substantial number of employees from construction and supporting crafts, and the unions look forward to working together to furnish a highly skilled workforce of our members to this critical project,” Boilermakers Local 627 business manager Jacob Evenson has indicated.

Hudbay plans to construct a concentrate leach processing facility during the fourth year of operations. This will enable the mine to produce copper cathode on site, eliminating the need for overseas shipping and refining and lowering its carbon footprint. Hudbay markets this initiative as "Arizona Copper Made For America".

The Copper World project also aligns with broader US priorities to bolster domestic supply chains, enhance national security and support the country’s transition to a low-carbon economy.

Key Contracts, Suppliers and Consultants
None stated.

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