The U.S. Department of Justice and Hudbay Receive Rosemont 9th Circuit Court Ruling; Hudbay Continues to Advance Copper World

Rhea-AI Summary

The U.S. Court of Appeals for the Ninth Circuit has issued a split decision regarding the Rosemont copper project, affirming a prior ruling that found the U.S. Forest Service made incorrect assumptions in its environmental impact assessment. Hudbay Minerals will continue to pursue its Copper World project, which has identified additional copper deposits and involves a Preliminary Economic Assessment (PEA). The PEA is expected to reveal positive economics for this project, focusing on a two-phase mine plan, with the results due in Q2 2022.

Positive

• Copper World project has discovered additional copper deposits.
• Hudbay has acquired 4,500 acres of private land to support operations.
• Preliminary Economic Assessment (PEA) expected to demonstrate positive economics.
• First phase of mine plan anticipated to be a standalone operation with an approximate 15-year mine life.

Negative

• Split decision delays the Rosemont project, relying on incorrect assumptions.

TORONTO, May 12, 2022 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM) and the U.S. Department of Justice today received a split decision from the U.S. Court of Appeals for the Ninth Circuit (the “Decision”), which affirmed the U.S. District Court for the District of Arizona’s (“District Court”) decision in July 2019 relating to the Rosemont copper project in Arizona. In the Decision, the Court of Appeals agreed with the District Court’s ruling that the U.S. Forest Service relied on incorrect assumptions regarding its legal authority and the validity of Rosemont’s unpatented mining claims in the issuance of Rosemont’s Final Environmental Impact Statement. While Hudbay reviews the Decision, in any event, the company will continue to pursue its alternative plan to advance its Copper World project.

Since 2019, Hudbay has successfully discovered the Copper World deposits located on patented mining claims adjacent to Rosemont. The company has also acquired a private land package totaling approximately 4,500 acres to support an operation on private lands. The initial technical studies for Copper World have been completed and the results are being incorporated into a Preliminary Economic Assessment (“PEA”) contemplating the development of the Copper World deposits in conjunction with an alternative plan for the Rosemont deposit. The PEA is expected to incorporate a two-phase mine plan with the first phase reflecting a standalone operation utilizing Hudbay’s private land for processing infrastructure and contemplating mining portions of Copper World and Rosemont located on patented mining claims. The first phase is expected to require only state and local permits and is expected to reflect an approximate 15-year mine life. The second phase of the mine plan is expected to extend the mine life and incorporate an expansion onto federal lands to mine the entire Rosemont and Copper World deposits. The second phase of the mine plan would be subject to the federal permitting process and the company expects it will be able to pursue the federal permits within the constraints imposed by the Decision, if any subsequent appeals are not successful. Hudbay expects the PEA to demonstrate positive economics for this low-cost, long-life copper project and the company is on track to publish the results in a NI 43-101 Technical Report in the second quarter of 2022.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, Hudbay’s expectations regarding the impacts of the decision of the U.S. Court of Appeals for the Ninth Circuit, Hudbay’s expectations regarding the preliminary economic assessment of the Copper World project and a potential alternative development plan for the Rosemont deposit and Hudbay’s expectations regarding the economics and permitting requirements for the Copper World project. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by the company at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information.

Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.

About Hudbay

Hudbay (TSX, NYSE: HBM) is a diversified mining company primarily producing copper concentrate (containing copper, gold and silver), zinc metal and silver/gold doré. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper projects in Arizona and Nevada (United States). The company’s growth strategy is focused on the exploration, development, operation and optimization of properties it already controls, as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay’s mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining, and to see the regions and communities in which the company operates benefit from its presence. The company is governed by the Canada Business Corporations Act and its shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima. Further information about Hudbay can be found on www.hudbay.com. 

For investor and media inquiries, please contact:

Candace Brûlé
Vice President, Investor Relations
(416) 814-4387
candace.brule@hudbay.com

FAQ

What was the decision by the U.S. Court of Appeals regarding Hudbay Minerals and the Rosemont project?

The U.S. Court of Appeals affirmed the District Court's ruling that the U.S. Forest Service relied on incorrect assumptions in issuing the environmental impact assessment for the Rosemont project.

How does the Court's decision impact Hudbay's plans for the Copper World project?

Despite the Court's decision, Hudbay will continue to advance its Copper World project, which includes an alternative plan for the Rosemont deposit.

What are the expected outcomes of the Preliminary Economic Assessment for the Copper World project?

The PEA is expected to show positive economics and will incorporate a two-phase mine plan for the Copper World project.

When will Hudbay publish the results of the Preliminary Economic Assessment?

Hudbay expects to publish the results of the Preliminary Economic Assessment in the second quarter of 2022.

What is the significance of the land acquired by Hudbay for the Copper World project?

The acquisition of approximately 4,500 acres of private land will support operations and allow for a standalone mining operation as part of the project's first phase.