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 permits.
On Thursday, the miner announced that the Arizona Department of Environmental Quality (ADEQ) has issued its air quality permit. This, it said, combined with the earlier aquifer protection and land reclamation approvals, completes the project’s permitting process.
“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,” CEO Peter Kukielski said in a news release.
Securing the state permits means Hudbay has completed the first part of its 3-P (three prerequisites) plan for sanctioning the Copper World project.
The company’s focus now turns to the second “P”, which is the completion of a definitive feasibility study (DFS) with an internal rate of return of greater than 15%. Activities related to the feasibility study have already begun, with completion targeted for the first half of 2026.
The third “P” is a multi-faceted financing strategy, including a committed minority joint venture partner. This process is also expected to begin in early 2025. It is anticipated that any partner would participate in the funding of the DFS activities in 2025, as well as in the final project design and construction for Copper World.
According to Hudbay, Copper World is expected to increase its consolidated annual copper production by more than 50% from current levels and, with a mine life 20 years in its initial phase, the operation will be a key contributor to the domestic US supply chain.
According to an updated prefeasibility study for Phase I of Copper World, it will have an after-tax net present value at $1.1 billion (at an 8% discount rate) and an internal rate of return of 19%, based on a copper price of $3.75/lb.
Shares of Hudbay Minerals rose 5.0% to C$12.24 apiece by 2 p.m. ET, near the upper end of its 52-week range of C$6.72-C$14.33. The Toronto-based company has a market capitalization of C$4.8 billion.
