Toronto-based Hudbay Minerals Inc. continues to cut spending on its Rosemont copper project and is now emphasizing developing major projects in Manitoba and Peru before it turns its attention to constructing the $1.5 billion open pit mine in the Santa Rita Mountains on the Coronado National Forest southeast of Tucson, according to company information released last week.
Hudbay’s deemphasis on Rosemont comes at the same time the U.S. Army Corps of Engineers Los Angeles district office in July recommended denial of a federal Clean Water Act permit needed to construct the mine. The Army Corps regional office in San Francisco is reviewing the recommendation and is expected to make a decision later this winter.
Hudbay CEO Alan Hair told investment analysts in a Nov. 3 conference call the company expects to issue an updated Rosemont technical report in the 1st Quarter of 2017 “outlining the feasibility work completed to date and an updated reserve and resource estimate.”
Investment analysts appear to have written off any possibility of Rosemont being developed in the next two years. Mathew Fields of Bank of America Merrill Lynch stated “we can get forget about Rosemont for while” when he asked about Hudbay’s capital expenditure plans for 2017 and 2018, according to a transcript of the conference call published by Yahoo Finance. Continue reading