Hudbay’s Copper World project in Arizona is fully permitted

“With our acquisition of Copper World’s air quality permit, we firmly believe that Hudbay now has the best fully permitted copper development project in the Americas,” CEO Peter Kukielski said in a press release.

Obtaining the state permits means that Hudbay has completed the first part of the 3-P (three preconditions) plan to sanction the Copper World project.

The company’s focus now turns to the second P, which is completing the Definitive Feasibility Study (DFS) with an IRR of more than 15%. Activities related to the feasibility study have already begun, and are scheduled to be completed in the first half of 2026.

The third “P” is a multi-faceted financing strategy, including a committed minority partner in the joint venture. This process is also expected to begin in early 2025. Any partner is expected to participate in financing DFS activities in 2025, as well as in the final project design and construction of 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 the mine being 20 years old in its initial phase, the operation will be a major contributor to the US domestic supply chain.

According to an updated Copperworld Phase 1 feasibility study, it would have an after-tax net present value of $1.1 billion (at an 8% discount rate) and an internal rate of return of 19%, based on a copper price of 19%. $3.75/lb

Shares of Hudbay Minerals rose 5.0% to C$12.24 per share by 2 PM EST, near the high end of a 52-week range of C$6.72 to C$14.33. The Toronto-based company has a market capitalization of C$4.8 billion.