USGS rejects request by six U.S. senators to add copper to Critical Minerals List

The U.S. Geological Survey has reaffirmed its 2022 decision to exclude copper from the nation’s Critical Minerals List (CML) after a bi-partisan group of U.S. senators urged the agency in February to reconsider its determination prior to the next triennial review of critical minerals.

“While copper is clearly an essential mineral commodity, its supply chain vulnerabilities are mitigated by domestic capacity, trade with reliable partners, and significant secondary capacity,” USGS Director David Applegate stated in an April 13 letter to Sen. Kyrsten Sinema, I-AZ. “As a result, the USGS does not believe that the available information on copper supply and demand justifies an out-of-cycle addition to the list at this time.”

Sinema, along with Mark Kelly, D-AZ, Joe Manchin, D-WV, Mike Braun, R-IN, Raphael Warnock, D-GA and Mitt Romney, R-UT used data provided by an industry trade association as justification for their Feb. 2 letter to Interior Department Secretary Deb Haaland requesting that she require the USGS to conduct the review with the goal of adding copper to the CML.

Due to copper’s major role in economic development, national security, and infrastructure, we strongly reiterate our recommendation that you direct the USGS to reopen its’ review of copper for inclusion in the USGS list of ‘critical minerals’ and reconsider the listing using the latest quantitative data and qualitative information,” the senators’ letter states.

Posted in Trade, Uncategorized | 5 Comments

Hudbay sets benchmarks to build Copper World/Rosemont mine complex

Toronto-based Hudbay Minerals Inc. has announced benchmarks it must achieve before it proceeds with construction of the Copper World/Rosemont mine complex in the Santa Rita Mountains 35 miles southwest of Tucson.

The requirements include a provision that Hudbay must find a joint venture partner willing to invest an unknown amount in the $2.8 billion project.  Hudbay bought out a previous joint venture partner in 2019.

The benchmarks also include financial targets requiring Hudbay to reduce long-term debt and increase cash reserves. Hudbay’s strategy also limits debt earmarked to the project to $500 million.

Hudbay Minerals Benchmarks for Copper World/Rosemont

In addition, Hudbay states it must renegotiate a metal streaming agreement where it receives $230 million for mine construction in exchange for long term sales of gold and silver at fixed prices.

Posted in Copper World, Economics, Hudbay, Investors | 3 Comments

Copper World’s high production of sulfuric acid poses serious pollution and water depletion threat to Santa Cruz River Valley

Hudbay Minerals’ radically revised plan to mine copper from the Santa Rita Mountains 35 miles south of Tucson increases water use and threatens to further contaminate the Santa Cruz River basin by relying on a rarely used copper ore processing technology that will generate millions of tons of sulfuric acid, according to information released by the company and previous environmental studies.

Copper World - June 22, 2022

Copper World – June 22, 2022 LightHawk overflight

Toronto-based Hudbay published a Preliminary Economic Assessment (PEA) for the Copper World Mining Complex in a June 8 press release. The PEA provides a general description of a $2.8 billion mining plan that straddles both sides of the Santa Rita Mountain range.

Hudbay’s previous plan to construct the Rosemont mine on the east side of the range was projected to cost $1.9 billion. The company said it would release a technical report providing more details as an addendum to the PEA within 45 days.

According to the PEA, Hudbay intends to blast three, relatively shallow, open-pit mines on the west flank of the Santa Ritas in the initial years of a 44-year project – more than twice as long as the former plan to develop only the Rosemont mine. Hudbay says it will begin processing copper ore from the much larger Rosemont pit, now called the East pit, starting in the third year.

Sulfide ore from primarily the East/Rosemont pit will be used partly to generate millions of tons of sulfuric acid on-site. The acid will be applied to crushed copper oxide ore found primarily on the mountain’s west side to extract a copper-laden solution. Millions of tons of unused sulfuric acid will be offered for sale. Continue reading

Posted in Copper World, Hudbay, water | 3 Comments

Hudbay says it is developing plans to build at least three open-pit copper mines on west side of Santa Rita Mountains

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Four years after stating there were substantial copper resources adjacent to the proposed Rosemont Mine on the northeast flank of the Santa Rita Mountains, Toronto-based Hudbay Minerals, Inc. is now saying it plans to develop at least three open-pit mines on the ridgeline and down the west side of the range overlooking Sahuarita and Green Valley.

The company has outlined a sprawling mining development that would destroy a section of the Santa Rita’s ridgeline and possibly connect the west side mining operations called Copper World with the proposed Rosemont Mine on the northeast flank of the mountain.

Hudbay’s preliminary plans are outlined in a mine reclamation plan submitted to the state and in a recent press release and investors’ report. Hudbay has not completed a formal economic analysis of the project nor a feasibility study required under Canadian mining laws before mining can begin. Hudbay states it expects to complete the reports next year, followed by two years of permitting, three years of construction with mining starting in 2027. Continue reading

Posted in Hudbay, Investors, Litigation, Western Claims | 7 Comments

Hudbay tells investors and analysts that it owns enough land to mine the western side of the Santa Rita Mountains

Toronto-based Hudbay Minerals executives said Tuesday there is sufficient space on its private 1,250-acre Copper World site on the west side of the Santa Rita Mountains to construct open-pit mines and processing facilities to handle recent discoveries of high-grade sulfide and oxide copper ore.

Screen Shot 2021-08-11“We have adequate land on which to deposit tailings as well as on which to deposit waste rock,” Hudbay CEO Peter Kukielski told stock analysts during the company’s Aug. 9 conference call to discuss 2nd Quarter financial results.

Kukielski said the Copper World project could proceed separately from the $1.9 billion Rosemont Mine on the northeast side of the Santa Rita Mountains, which was stopped after a 2019 federal court ruling that is now on appeal.

“Rosemont remains a priority for us,” Kukielski said, “but Copper World presents a super exciting potential alternative or addition.” Continue reading

Posted in Hudbay, Investors, Western Claims | 4 Comments