Hudbay plans additional Rosemont drilling as stock hits four-year low


Hudbay Minerals, Inc. announced Thursday it plans to spend an additional $10 million for exploratory drilling at its Rosemont copper prospect and another $60 million for permitting and engineering in 2015.

The company provided no details on when and where it plans this year’s drilling program or how the permitting and engineering expenses will be allocated.

“In Arizona, an additional drilling program is planned for 2015 focusing on continuing to improve our understanding of the initial years of mining as well as plant site geotechnical work,” Hudbay stated in a Jan. 15 press release.

Toronto-based Hudbay conducted an $8 million “confirmatory” drilling program late last year at the controversial Rosemont site in the Santa Rita Mountains on the Coronado National Forest southeast of Tucson. Continue reading

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Breaking News: 400 protesters occupy Hudbay’s Constancia mine site

Approximately 400 protesters from rural communities are camping on property planned for an open pit copper mine at Hudbay Mineral’s $1.7 billion Constancia project in Peru, according to a report released Thursday by Human Rights Without Frontiers.

Local residents protest Hudbay's Peruvian Constancia mine. Source: Human Rights Without Borders

Local residents protest Hudbay’s Peruvian Constancia mine. Source: Human Rights Without Borders

At least 4 women were injured in clashes with Peruvian National Police on Thursday near Hudbay’s project in a remote area in the Andes, according to the human rights group.

The occupation of the planned open pit site follows a Nov. 11 protest where 160 people from nearby villages staged a sit-in at the main entrance to one of Hudbay’s mining camps.

The day before, Nov. 10, two youths were detained and reportedly beaten by Peruvian National Police after entering Hudbay property, the human rights group states. Continue reading

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Protestors converge on Hudbay’s Constancia project

Detailed map of Hudbay's Constancia mine showing location of key infrastructure. Source: Hudbay Investor Presentation, Oct 2, 2014.

Click to Enlarge. Detailed map of Hudbay’s Constancia mine showing location of key infrastructure. Source: Hudbay Investor Presentation, Oct 2, 2014.

Two protestors were arrested Monday at Hudbay Mineral’s Constancia mine site in Peru after local residents converged on the $1.7 billion open-pit copper project to protest Hudbay’s failure to fulfill commitments to the local community, according to a news release issued by CooperAccion and distributed by MiningWatch Canada.

“According to local media, a group of residents crossed the company’s security fence,” CooperAccion stated in its media release. “Two individuals were detained by the significant police force that protects the camp.”

Hudbay's $1.7 billion Constancia project in Peru.

Hudbay’s $1.7 billion Constancia project in Peru. Source: Hudbay Minerals

Hudbay negotiated a contract to lease 635 acres from residents in Uchuccarco for its mining operations in March 2012.

According to CooperAccion, Hudbay agreed to promote community development through a series of projects concerning education, health, housing and other issues. Uchuccarco community leaders are now claiming Hudbay has failed to comply  with the agreements.

Continue reading

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Hudbay has no timeline for developing Rosemont

Rosemont Copper Company’s new owner Hudbay Minerals Inc. said Thursday it has no definitive timetable for developing its proposed massive open pit mine in the Santa Rita Mountains that still needs to obtain a key federal water permit and approval from the U.S. Forest Service before construction could begin.

The Toronto-based mining company said it must first have four other mines operating smoothly before it can turn its full attention to Rosemont, which it acquired in a C$520 million stock deal last summer from Augusta Resource Corporation.

“We really need to establish a steady state at all four of these mines before we revisit our dividend policy and invest substantial capital in Rosemont or any other opportunities,” an unidentified Hudbay executive told investment analysts Thursday during a conference call to discuss the company’s Third Quarter earnings. “It doesn’t mean we are going to slow progress on permitting at Rosemont. Once we have the permitting there, we will try to move that project forward as quickly as possible.” Continue reading

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Hudbay completes aquisition of Augusta Resource to take control of Rosemont copper project

Hudbay Minerals announced this week the completion of its $516 million (Canadian) acquisition of Augusta Resource Corporation, triggering a multimillion dollar windfall for Augusta executives and putting Hudbay in control of the controversial Rosemont copper project on the Coronado National Forest southeast of Tucson.

Following Tuesday’s announcement, Augusta Resource was delisted from the New York Stock Exchange, Toronto Stock Exchange and the Frankfort Stock Exchange. Hudbay issued .315 shares of Hudbay stock for each share of Augusta’s 145 million shares of common stock and agreed to issue .17 of a Hudbay warrant for each share of Augusta stock.

Augusta Executive Chairman Richard Warke appears to have earned more than $22 million on the the deal, based on a review of Augusta’s financial reports filed with Canadian securities regulators dating back to 2001. Continue reading

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