Copper-focused mining company Hudbay Minerals has secured an aquifer protection permit for its Copper World project in the US from the Arizona Department of Environmental Quality (ADEQ).
The permit marks a significant step in the development of the Copper World project.
Located in Pima County, the Copper World project is a standalone operation expected to produce 85,000 tonnes of copper annually over a 20-year mine life. It encompasses seven deposits discovered in 2021, along with the East deposit.
A preliminary economic assessment (PEA) released in 2022 contemplated a two-phased mine plan for the Copper World project. Phase 1 of the project will require an estimated total initial funding of around $1.1bn.
Upon achieving production, the Copper World project is expected to become a major contributor to the US domestic copper supply chain. It will address the growing demand for metal driven by increased manufacturing capacity, infrastructure development, and energy independence.
The copper cathode produced at the Copper World project will be sold exclusively to customers within the US.
The project requires three key state permits for its advancement. The mined land reclamation plan was initially approved by the Arizona State Mine Inspector in October 2021.
With the aquifer protection permit, the air quality permit is the final permit required for the Copper World project. The application for the latter was submitted in late 2022.
Over its mine life, the Copper World project is anticipated to contribute over $850m in US taxes, including approximately $170m to the state of Arizona.
Besides, the project is expected to generate over 400 direct jobs and up to 3,000 indirect jobs in the state.
Hudbay Minerals president and CEO Peter Kukielski said: “The last key state-level permit, the Air Quality Permit, continues to progress as planned and will mark the completion of one of the three key prerequisites in the company’s prudent sanctioning plan for the project.
“Copper World represents Hudbay’s next significant copper growth project and is expected to increase consolidated annual copper production by more than 50% from current levels. Copper World will also be a key contributor to the domestic US supply chain with our plans to produce Made-in-America copper.”
Following the receipt of the final permit, Hudbay Minerals intends to initiate a process to secure a minority joint venture partner.
The potential partner would participate in the funding of definitive feasibility study activities in 2025 and the final project design and construction.
The decision to sanction the Copper World project is anticipated in early 2026 and will be evaluated against other investment opportunities as part of the company’s capital allocation process.
