The projected construction cost for Hudbay Mineral’s Rosemont copper prospect has jumped another $300 million to $1.5 billion, according to Hudbay CEO David Garofalo.
The projected cost of the mile-wide, half-mile deep open pit copper mine planned for the Santa Rita Mountains on the Coronado National Forest 30 miles southeast of Tucson has increased $600 million since 2009.
The previous owner of the Rosemont prospect, Vancouver, B.C.-based Augusta Resource Corp., projected the mine would cost $897 million in 2009. Augusta raised the estimate to $1.2 billion in 2012. Hudbay purchased Augusta last summer to acquire rights to Rosemont.
In comments to investment analysts during a Feb. 20 conference call, Garofalo said Hudbay expects to fund Rosemont through cash flow generated from its three Manitoba mines, the Constancia copper project in Peru and existing debt capacity. Continue reading