Hudbay Minerals‘ (TSX, NYSE: HBM) proposed 85,000-tonne-per-year Copper World project in Arizona is now fully permitted for development after receiving all three key state-level approvals.
The Arizona Department of Environmental Quality has issued its air quality permit, the miner said on Thursday. Combined with the earlier aquifer protection and land reclamation approvals, this completes the project’s permitting process.
“We firmly believe Hudbay now has the best fully permitted copper development project in the Americas,” Hudbay CEO Peter Kukielski said in a news release.
However, Hudbay still must complete a definitive feasibility study and arrange financing for the project. Copper World’s first stage has an after-tax net present value at US$1.1 billion at an 8% discount rate and an internal rate of return of 19%, based on a copper price of US$3.75 per lb.
New study
The Toronto-based company is targeting the new study to show an internal rate of return of more than 15%. Initial work has begun, with completion planned for the first half of next year.
Hudbay is seeking a minority joint venture partner. It’s anticipated any partner would help fund the study this year as well as the final project design and construction.
According to Hudbay, Copper World is expected to increase its consolidated annual copper production by more than 50%. With a 20-year mine life in its initial stage, the operation is to be a key contributor to the domestic U.S. supply chain.
Shares of Hudbay Minerals rose 5.2% to close at $12.26 apiece on Thursday in Toronto, near the upper end of its 52-week range of $6.72-$14.33. The company has a market capitalization of $4.8 billion.
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