Hudbay Minerals has received an air quality permit for its Copper World project in the US from the Arizona Department of Environmental Quality (ADEQ).
The permit marks the final major regulatory approval required for the American copper project’s development and operation.
It completes a trio of essential state-level approvals for the Copper World project. The mined land reclamation plan, approved in October 2021 and later amended for a larger project footprint, overcame legal challenges in May 2023.
The aquifer protection permit was granted in August 2024 following an extensive review and public consultation process.
Located in Pima County, Arizona, the Copper World project is expected to produce approximately 85,000 tonnes of copper annually over its initial 20-year mine life.
The development of the project will proceed in two phases. A pre-feasibility study (PFS) completed in 2023 optimised the site layout, increasing tailings and waste deposition capacity and extending the mine life by four years.
Phase I’s estimated capital investment is $1.3bn, with an additional $400m required in year four for a concentrate leach facility.
The project’s after-tax net present value (NPV) is $1.1bn, with an internal rate of return (IRR) of 19%.
Phase II, which will expand operations onto federal lands, is expected to significantly enhance project economics and extend the mine life. However, this phase is subject to federal permitting and was not included in the PFS results.
Hudbay Minerals estimates that the Copper World project will generate over $850m in US taxes during its initial 20 years, including $170m for Arizona.
The company also expects the project to create more than 400 direct jobs and up to 3,000 indirect jobs.
Hudbay Minerals intends to begin searching for a minority joint venture (JV) partner in early 2025.
The JV partner will contribute to funding the definitive feasibility studies and participate in the final design and construction phases. The company does not anticipate sanctioning the project until 2026, aligning with current timelines.
Hudbay Minerals president and CEO Peter Kukielski said: “With the receipt of the Air Quality Permit for Copper World, we firmly believe Hudbay now has the best fully permitted copper development project in the Americas.
“We have completed one of the three key prerequisites in our sanctioning plan for Copper World, and we intend to advance feasibility studies and our prudent financial strategy throughout 2025 as we work toward a sanctioning decision in 2026.”
