Can you give us an overview of the Copper World Complex in Arizona and tell us about the results of the PEA you recently announced?

The Copper World Complex is a traditional open pit operation that includes a copper sulfide ore processing plant and an oxide leach plant. That is, we will produce copper concentrates and cathodes with some molybdenum. Although not an operation the size of Constancia in Peru, it will produce approximately 86,000 t/y of copper on average over its 16-year life in phase 1. The project in this phase has an after-tax net present value, at a 10% rate, of US$741 million, which makes it quite attractive. And, combining phase 1 with phase 2 will have an after-tax net present value of US$1.3 billion.

The first phase for the Copper World Complex only requires state and local permits because it is exclusively on private land. We have already acquired the surface rights and purchased 4,500 acres of land. However, the second phase, Rosemont, will extend the total life of the operation to approximately 44 years, and for this project, we need federal permits because it is on Forest Service and BLM lands. We are currently in full pre-feasibility of the project and plan to complete the engineering this year, and next year we will continue with feasibility studies for the project.

What impact could Rosemont have on the region and how could you replicate the virtuous circle already created in Canada or Peru?

Among the positive impacts, we can highlight tax revenues and the generation of many local jobs and local procurement. In addition, it would result in copper being produced in the US, which in turn would reduce decarbonization. If we want a green world, we need copper, and producing cathode locally in the US allows us to avoid shipping the concentrate across the ocean and we can process it locally. This would eliminate the carbon footprint we generate by shipping the concentrate.

What is your outlook for copper fundamentals?

I think we are seeing a temporary slowdown in the global economy. However, copper in the long term will follow an upward trend. Its price will rise considerably due to high demand. Today there are not many new mining projects and much more copper is needed for electric cars, power grids, and the green economy in general, which is where the world is heading. In Europe, for example, big steps are being taken to support the green economy.

What is Hudbay Minerals’ growth strategy in the coming years?

We are always on the lookout for opportunities that add value to our shareholders and stakeholders, so we are constantly doing due diligence. We are also aggressively exploring in different parts of the world; we have new projects in Manitoba (Canada) and opportunities to grow and optimize our operations. We want to crystallize opportunities around our operations. We have several opportunities at Constancia that could be satellite pits and we are seeing if it makes sense to develop them so that they can bring in more metal production. The same is true in Manitoba, Nevada, and at the Copper World Complex in Arizona, where we have high expectations.