TSX- and NYSE-listed Hudbay Minerals on Thursday approved a $122-million early works programme for its Rosemont copper project, in Arizona, and said that it would soon start a process of bringing on board a new minority joint venture partner.
The early works programme is part of Rosemont’s total project capital cost estimate of $1.92-billion.
It will fund the construction of a water pipeline and power transmission line to site, which are critical long-lead items that are necessary to initiate heavy civil works at site, advancing critical path engineering and geotechnical work to support long-lead procurement and de-risk the project schedule and cost estimate, archaeological site work to prepare key areas for construction and spending on permit-related mitigation activities and owner’s costs.
The project recently concluded its permitting process and is now in a position to move forward.
Hudbay said it would seek board approval to start the construction of Rosemont by the end of the year, to enable first production by the end of 2022.
Rosemont is expected to produce about 127 000 t/y of copper at a cash cost of $1.14/lb pound, net of by-product credits, over the first ten years of operations.