Final Regulatory Approval Received
Hudbay Minerals has successfully secured the final crucial permit required for the Copper World project, located in Pima County, Arizona. The air quality permit granted by the Arizona Department of Environmental Quality (ADEQ) is the last major regulatory approval needed for the project’s development. This approval completes a set of essential state-level authorizations, including the mined land reclamation plan and aquifer protection permit, both of which were secured after thorough reviews and public consultation processes.
Project Overview and Economic Prospects
The Copper World project, with an estimated 20-year mine life, is expected to produce approximately 85,000 tonnes of copper annually. The first phase of the development will require an estimated capital investment of $1.3 billion, followed by an additional $400 million in the fourth year for a concentrate leach facility. The project boasts an after-tax net present value (NPV) of $1.1 billion and an internal rate of return (IRR) of 19%. Phase II, which involves expanding the project onto federal lands, could further enhance its economics, but it remains subject to federal permitting.
Economic Benefits and Job Creation
Hudbay estimates that the Copper World project will generate over $850 million in taxes over its initial 20 years of operation, with $170 million directed to Arizona. Additionally, the project is expected to create more than 400 direct jobs and up to 3,000 indirect jobs, offering significant economic benefits to the region.
Next Steps and Future Plans
Looking ahead, Hudbay plans to search for a minority joint venture (JV) partner in early 2025 to help fund definitive feasibility studies and support the final design and construction of the project. With the current regulatory approvals in place, Hudbay expects to make a final sanctioning decision in 2026, following further studies and prudent financial strategies throughout 2025.
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