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Hudbay Minerals receives approved MPO for Rosemont project

Published by , Assistant Editor
Global Mining Review,

Wheaton Precious Metals Corp. (Wheaton) has announced that Hudbay Minerals Inc. (Hudbay) has received the approved Mine Plan of Operations (MPO) for the Rosemont project from the US Forest Service. The approval of the MPO follows the receipt of a Section 404 Water Permit from the US Army Corps of Engineers for Rosemont on 8 March 2019. Hudbay has indicated that the issuance of the MPO is the final administrative step in the permitting process.

"We applaud the hard work and patience Hudbay has put forth in order to advance the Rosemont project to this stage," said Randy Smallwood, Wheaton's President and CEO.

"With their most recent successful construction of the Constancia mine in Peru, the Hudbay team has proven themselves to be strong and responsible mine developers, and we are excited about the same team moving this project into production. Rosemont is an ideal fit for Wheaton's portfolio of high quality assets, and when it is in production, should add well over fifty thousand gold equivalent ounces to our already growing production profile."

The Rosemont project is a copper-molybdenum-silver porphyry deposit located in Pima County (Arizona). Hudbay acquired the project in July 2014 through the acquisition of Augusta Resources Corporation. Based on the 2017 Feasibility Study published by Hudbay, Rosemont is expected to produce approximately 127 000 t of copper annually at a cash cost of US$1.14/lb (net of by-product credits) over the first 10 years of operations.

As a reminder, Wheaton's wholly-owned subsidiary Wheaton Precious Metals International Ltd. (Wheaton International) has a precious metals purchase agreement with Hudbay on the Rosemont project, which in exchange for an upfront payment of US$230 million paid in two installments, entitles Wheaton International to 100% of payable silver and gold produced from Rosemont at a cash price of US$450/oz of gold and US$3.90/oz of silver, subject to an annual adjustment for inflation.

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