Hudbay Receives Air Quality Permit for Copper World

Core Viewpoint - Hudbay Minerals Inc. has received the Air Quality Permit for the Copper World project, marking a significant milestone as it is the final major permit required for development and operation. The project is expected to produce 85,000 tonnes of copper annually over an initial 20-year mine life [1][2]. Group 1: Project Development and Economic Impact - The Copper World project is anticipated to increase Hudbay's consolidated annual copper production by over 50% from current levels, contributing significantly to the U.S. supply chain with plans to produce Made-in-America copper [2]. - Over the initial 20-year mine life, Hudbay expects to contribute more than $850 million in U.S. taxes, including approximately $170 million to the state of Arizona, and create over 400 direct jobs and up to 3,000 indirect jobs [4]. - The estimated initial capital investment for Phase I of Copper World is approximately $1.3 billion, with an additional $0.4 billion required in year four for a concentrate leach facility [12]. Group 2: Permitting and Regulatory Progress - Hudbay has completed all three key state permits required for Copper World: the Mined Land Reclamation Plan, the Aquifer Protection Permit, and the Air Quality Permit [3]. - The Air Quality Permit was received on January 2, 2025, following a robust process that included public comment periods [3]. Group 3: Financial Strategy and Planning - Hudbay has introduced a three prerequisites plan (3-P) for project sanctioning, which includes the completion of all required permits, a definitive feasibility study with an internal rate of return greater than 15%, and a prudent financing strategy [5][26]. - The company has generated $840 million in adjusted EBITDA and reduced net debt by $506 million for the twelve months ending September 30, 2024, improving its net debt to adjusted EBITDA ratio to 0.7x [6]. - A minority joint venture partner process is anticipated to commence early in 2025, which will participate in funding the definitive feasibility study activities and final project design [7]. Group 4: Project Specifications and Future Outlook - Copper World is located in Pima County, Arizona, and includes seven deposits discovered in 2021, with a new resource model completed for the preliminary economic assessment in 2022 [9]. - The project is one of the highest-grade open pit copper projects in the Americas, with proven and probable mineral reserves of 385 million tonnes at 0.54% copper [14]. - The internal rate of return for Phase I is estimated at 19% based on a copper price of $3.75 per pound, with an after-tax net present value of $1.1 billion [13].