Hudbay president and CEO Peter Kukielski
The community of Chilloroya has formally approved a surface rights agreement with TSX- and NYSE-listed miner Hudbay for the Pampacancha satellite deposit, located near the Constancia mine, in Peru, paving the way for mining to commence from the deposit in late 2020.
Announcing the agreement, president and CEO Peter Kukielski said on Tuesday that Pampacancha added high-grade copper and gold ore into the Constancia mine plan, lowering future cash costs for the mine and increasing operating cash flows at Constancia.
Constancia is forecast to produce between 100 000 t to 125 000 t of copper this year and 45 000 oz to 55 000 oz of precious metals.
“Not only was Constancia one of the best project development and production ramp-up successes of recent project builds, Constancia is also one of the lowest cost openpit copper mines in South America. This could not have been achieved without our long-term commitment to, and partnership with, our local communities, and this successful agreement further validates our social acceptance to operate in Peru," said Kukielski.
The company earmarked about $70-million in capital expenditure for project development and acquiring the surface rights for Pampacancha this year.
In accordance with Peru’s Consulta Previa law, additional consultation between the Peruvian government and the local community is required before Hudbay can begin development activities.