Hudbay Selects Local Firms to Advance Copper World Feasibility Study

Rhea-AI Summary

Hudbay Minerals has selected key firms to advance the feasibility study of its Copper World project in Arizona. The project team includes local companies Sundt Construction and M3 Engineering & Technology, along with Ames Construction, DRA Global, Knight Piésold, Mipac, and Stantec. Located 28 miles southeast of Tucson, this fully permitted mine is expected to operate for 20 years, generating over $850 million in U.S. taxes, including $420 million in state and local taxes. The project will create 400 direct jobs and up to 3,000 indirect jobs in Arizona. Notably, Copper World plans to build a concentrate leach processing facility in its fourth year, enabling local production of copper cathode and reducing carbon footprint. The project will be executed under an integrated project delivery model, with Hudbay also committing to provide significant opportunities to union contractors for construction.

Positive

• Project is fully permitted and ready to advance to feasibility study phase
• Expected to generate over $850 million in U.S. taxes, including $420 million in state/local taxes
• Will create 400 direct jobs and up to 3,000 indirect jobs in Arizona
• Plans to build local concentrate leach processing facility to reduce carbon footprint
• 20-year mine life provides long-term operational visibility
• Strategic partnership with experienced local firms and union contractors

Negative

• Processing facility won't be operational until fourth year of operations
• Significant capital investment will be required for project development

Insights

Mining Development Strategist

Hudbay advances Copper World with feasibility study partnerships, signaling progress toward developing this fully permitted, economically significant project.

Hudbay's selection of key engineering and construction firms for the Copper World feasibility study represents a meaningful progression in the project's development timeline. By engaging established companies like Sundt Construction and M3 Engineering (both Arizona-based), alongside specialists including Ames Construction and DRA Global, the company has assembled expertise across critical mining development disciplines.

The announcement's focus on an integrated project delivery model is particularly noteworthy. This collaborative approach typically accelerates development timelines while improving risk management - crucial for large-scale mining projects where delays and cost overruns are common challenges. The emphasis on involving local Arizona firms with regional knowledge suggests potential permitting and community relations advantages.

From a financial perspective, the projected $850 million in U.S. tax contributions (including $420 million in state/local taxes) over the mine's 20-year lifespan indicates substantial expected revenue generation. The planned concentrate leach processing facility addition in year four represents a strategic vertical integration move that should enhance margins by producing finished copper cathode rather than lower-value concentrate.

Beyond direct operational benefits, Hudbay is positioning Copper World within the broader context of domestic critical minerals supply, targeting growing demand from infrastructure development and the energy transition. This alignment with national priorities for secure supply chains could potentially provide regulatory advantages and possible government support as the project advances.

TUCSON, Ariz., June 11, 2025 /PRNewswire/ -- Copper World, Inc., a wholly-owned subsidiary of Hudbay Minerals Inc. ("Hudbay"), today announced the selection of several companies to conduct feasibility studies and drive early-stage project development for the Copper World project. This milestone marks the continued advancement of the fully permitted mine that is one of the most significant economic development projects in Southern Arizona's history.

The selected firms include Arizona-based Sundt Construction and M3 Engineering & Technology Corporation, each with extensive experience delivering complex infrastructure and mining projects across the state. They are joined by Ames Construction, DRA Global Limited, Knight Piésold, Mipac, and Stantec. Together, these firms bring a wealth of expertise in mine design, infrastructure development, mineral processing and environmental management. Several have been significantly involved in local projects, contributing to a local workforce that is already familiar with Southern Arizona and its communities.

This development is structured under an integrated project delivery model, a collaborative approach designed to align engineering, construction, and technical partners from the earliest stages. This model fosters more efficient planning, enhances risk mitigation, and streamlines execution across all phases of the project lifecycle.

"We are proud to partner with some of the most respected engineering and construction firms in the industry," said Javier Del Rio, Senior Vice President of the U.S. Business Unit for Hudbay. "These companies have a strong presence in Arizona, and their regional knowledge and technical capabilities are instrumental as we advance the Copper World project with a focus on quality, safety and local community benefit."

Building upon its commitment to providing community benefits and leveraging local expertise, Copper World Inc. and a coalition of local union building trades recently announced a letter of commitment for the construction of Copper World. The letter outlines Hudbay's commitment to providing union contractors with a significant opportunity in the construction of the Copper World mine.

Located 28 miles southeast of Tucson, Copper World is a fully permitted project that is expected to generate significant benefits for the community and local economy. Over the anticipated 20-year life of the fully permitted mine, Hudbay expects to contribute more than $850 million in U.S. taxes, including over $420 million in state and local taxes. Copper World is also projected to create over 400 direct jobs and up to 3,000 indirect jobs in Arizona. Furthermore, Copper World is expected to bolster the domestic U.S. supply chain with Arizona "Made in America" copper by building a concentrate leach processing facility in the fourth year of operation. This local production of copper cathode would significantly reduce the project's carbon footprint by eliminating overseas shipping and refining. Copper World is expected to help meet the growing demand for critical minerals in the U.S. related to increased manufacturing capacity, infrastructure development, increased energy independence, domestic battery supply chain needs and strengthening the nation's security.

About Hudbay

Hudbay (NYSE, TSX: HBM) is a copper-focused critical minerals company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining jurisdictions of Canada, Peru and the United States.

Hudbay's operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Copper is the primary metal produced by the Company, which is complemented by meaningful gold production and by-product zinc, silver and molybdenum. Hudbay's growth pipeline includes the Copper World project in Arizona (United States), the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru) and several expansion and exploration opportunities near its existing operations.

The value Hudbay creates and the impact it has is embodied in its purpose statement: "We care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities." Hudbay's mission is to create sustainable value and strong returns by leveraging its core strengths in community relations, focused exploration, mine development and efficient operations.

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SOURCE Hudbay Minerals

FAQ

What is the expected economic impact of Hudbay's Copper World project?

The project is expected to generate over $850 million in U.S. taxes, including $420 million in state and local taxes, while creating 400 direct jobs and up to 3,000 indirect jobs in Arizona over its 20-year life.

Where is HBM's Copper World project located?

The Copper World project is located 28 miles southeast of Tucson, Arizona.

How many jobs will Hudbay's Copper World project create?

The project will create over 400 direct jobs and up to 3,000 indirect jobs in Arizona.

Which companies were selected for Hudbay's Copper World feasibility study?

Hudbay selected Sundt Construction, M3 Engineering & Technology Corporation, Ames Construction, DRA Global Limited, Knight Piésold, Mipac, and Stantec.

What is the expected mine life of Hudbay's Copper World project?

The fully permitted mine has an anticipated life of 20 years.