Hudbay Minerals Inc and its partner Mitsubishi Corporation have approved the development of what they say will be one of the largest open-pit copper mines in the US.
The news came when announcing the results of the definitive feasibility study and related prefeasibility studies (collectively referred to as ‘the DFS’) for the Copper World project, 70% owned by Hudbay and 30% owned by Mitsubishi.
With first production projected in the second half of 2029, Copper World will be the first of the next generation of long-life, low-cost copper mines in the Americas, Hudbay claims.
The DFS outlines annual copper production of 102,000 t over the first 10 years, an 11% increase when compared to 92,000 t in Hudbay’s 2023 prefeasibility study for Copper World. This could see Hudbay’s consolidated annual copper production increase to approximately 250,000 t, doubling current production levels, with other brownfield growth projects underway.
The base case for Copper World contemplates a 15-year mine life utilising mineral reserves (390 Mt at 0.47% Cu), and requires only state and local permits,
This base case further optimises the 2023 PFS mine plan with an in-pit crushing and conveying (IPCC) system in year four and an expansion of the concentrator from 54,431 t/d to 81,64t t/d in year five. Concentrator expansion enables a 43% increase in average annual copper production to 120,000 t in years six to 10 compared with 84,000 t over the first five years.
The addition of an IPCC system, starting in year four, is predicated on efficiently managing the higher mined material tonnages to match the concentrator expansion throughput in year five. The IPCC system will have a nominal design capacity of 90,718 t/d and forms a critical component of the mine plan that will convey ore from the East pit to stockpiles and the processing plant. The IPCC will enable fewer haul trucks and lower emissions and operating costs, Hudbay added.
The extension case for the Copper World project contemplates a 37-year mine life utilising only measured and indicated mineral resources and expands mining activities onto federal lands in year 10, subject to obtaining federal permits, maintaining annual copper production of 117,000 t from years 11 to 20.
The fully permitted concentrate leach facility – which would produce “Made in America” copper cathode for the US critical minerals supply chain – represents a key future upside opportunity.
“The approval of the development of Copper World represents a significant milestone for Hudbay, our partners at Mitsubishi, our stakeholders, and the copper landscape in the US,” Peter Kukielski, Hudbay’s Chief Executive Officer, said. “Copper World is one of the most attractive copper growth projects in the Americas, offering some of the highest copper grades, lowest cash costs and favourable capital intensity.”
The Copper World project includes four deposits discovered in 2021, together with the East deposit. Copper World is planned to be a traditional open-pit shovel and truck operation with a conventional flotation concentrator producing copper concentrate and molybdenum concentrate. A new resource model was completed for the 2022 PEA, which contemplated a two-phased mine plan with Phase I as a standalone operation requiring state and local permits only and Phase II expanding onto federal lands requiring federal permits. Phase I contemplated a 54,431 t/d sulphide concentrator and Phase II assumed an expansion of the concentrator to 81,64t t/d.
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