Óscar González Rocha President and CEO ASARCO
Can you provide an overview of Asarco’s production profile in the US?
Asarco produces at our three mines in Arizona: Ray, Mission and Silver Bell. The Hayden concentrator and the smelter in Arizona will remain inactive while we assess the situation to determine how to resume operations. Once the smelter is back online, the Amarillo refinery in Texas will also restart. This refinery supplies wire rod to the entire East Coast of the US.
Asarco's production in 2024 is seeing a small increase compared to 2023, thanks to an additional investment of around US$120 million. This boost is expected to benefit Asarco, despite challenges with staffing in the US mining sector. We have even brought in some personnel from Mexico to Arizona to support our operations. How does Asarco use its proprietary Copper Basin Railway?
Currently, the Copper Basin Railway is being used to transport production concentrates. However, as the Hayden smelter is not operational, concentrates from Mission and Ray are being handled differently. Silverbell, with its leaching plant, produces copper cathodes. These concentrates are being trucked to Guaymas, where we take advantage of our storage facilities. What are the firm’s goals to increase revenue?
Asarco is set to improve its production. Investments in 2023 hovered around US$1 billion, and the 2024 budget is slightly higher, nearing US$1.1 billion, a roughly 10% increase. We hope that increased production at Ray and Mission, whether through better ore grades or higher volumes, will boost our revenue. This would help recoup part of the US$1 billion investment. We expect Ray's production to increase slightly, while Mission's may not see as much growth. Silverbell will also contribute modestly with finished copper cathodes. Overall, these improvements should help Asarco increase its current income.
Javier Del Río Sr. Vice President, US Business Unit HUDBAY MINERALS
Can you introduce Hudbay’s US-based assets?
Hudbay has two key assets: the Copper World Complex and the Mason project. Copper World is a proposed open-pit copper mine, projected to produce an average of 85,000 t/y of copper over its 20-year lifespan, positioning it among the largest copper producers in the US. The Mason project, located in Nevada's historic Yerington district, is one of North America's largest undeveloped copper deposits. Currently in the pre-development phase, Mason is expected to have a 27-year mine life, with average copper production of 140,000 t/y during its first 10 years. What were highlights from Copper World’s enhanced PFS?
The Copper World PFS outlines a two-phase approach to responsibly extract minerals and produce finished copper on-site. Phase one is a standalone operation, requiring only state and local permits, with a 20-year mine life. During this phase, Copper World is expected to produce an average of 85,000 t/y. Phase two aims to expand operations onto federal land, which would require federal permits, and could extend the mine life beyond 20 years.
The pre-feasibility study for phase one was completed in September 2023, demonstrating strong economic potential, with a projected IRR of 19% and a NPV of US$1.1 billion. What is on the horizon for Hudbay?
With the receipt of the Aquifer Protection Permit, Hudbay is set to begin preparations for the Copper World feasibility study. The company plans to start the definitive feasibility study activities in 2025. Once the final air permit is secured, expected by the end of 2024 or early 2025, Hudbay will launch a search for a minority joint venture partner. Hudbay anticipates the project sanctioning to happen by early 2026, based on current timelines. The company is excited about the traction expected during the joint venture search and looks forward to turning Copper World into a reality.