Canadian base metals miner Hudbay Minerals has received key permit amendments for the New Ingerbelle expansion at its Copper Mountain mine in British Columbia, Canada, while gearing up for a potential 2026 sanction decision on its flagship Copper World project in Arizona, US.

The amended Mines Act and Environmental Management Act permits were granted through the coordinated authorisations process managed by the British Columbia Major Mines Office, enabling Hudbay to advance the New Ingerbelle expansion and extend the life of the Copper Mountain mine.

“The New Ingerbelle permit ensures that we will be able to advance this major project while extending our partnership with local communities to facilitate additional growth investments at Copper Mountain and further adds to our 99 years of successful operations in Canada,” said president and CEO Peter Kukielski.

The expansion is expected to unlock access to higher-grade gold mineralisation and improve operating efficiency, with a stripping ratio about three times lower than current mining areas. Based on current reserves, the project is projected to produce about 750 000 t of copper, 900 000 oz of gold and 5.5-million ounces of silver over the extended mine life.

Hudbay estimates the expansion could generate more than C$11.5-billion in provincial GDP, while preserving more than 800 direct jobs and sustaining economic benefits at local, regional and federal levels.

British Columbia Minister for Mining and Critical Minerals Jagrup Brar said the expansion would help retain hundreds of jobs in the Princeton community and support long-term economic activity in the province.

While the Ingerbelle permits mark a significant brownfield milestone, Hudbay had also signalled that 2026 could be a pivotal year for capital allocation, with a potential final investment decision on Copper World in the US.

Kukielski told analysts that Hudbay’s recent strategic joint venture with Mitsubishi strengthened its ability to advance its copper growth pipeline.

“Our prudent strategic financial planning and execution has enabled us to achieve our balance sheet deleveraging goals ahead of schedule and lowered our cost of capital. We now have the financial flexibility to sanction Copper World in 2026, embark on generational investments in our operating portfolio and commence increases in shareholder returns with our first-ever dividend increase as part of our holistic capital allocation framework,” he said on a conference call.

CFO Eugene Lei added that the company had executed all elements of its previously outlined “3P plan”, completing its deleveraging and delivering what he described as the strongest balance sheet in more than a decade.

“Together with the strategic investment by Mitsubishi, Hudbay is very well positioned to both sanction the Copper World project and embark on generational investments in our operating portfolio in 2026,” Lei said.

Hudbay has introduced an enhanced capital allocation framework, balancing growth capital for brownfield and greenfield projects with debt management, share buybacks and dividends. The company also announced a new quarterly dividend of $0.01 a share, doubling its prior yearly payout to $0.04 a share.

At Copper World, feasibility activities are under way, with completion of a definitive feasibility study targeted for mid-2026. Growth capital has been allocated in 2026 for detailed engineering, long-lead items and derisking activities, with a sanction decision still expected in 2026.

Kukielski said the project remained robust across pricing scenarios.

“In the prefeasibility study (PFS), this is a very robust project. It generated close to 20% internal rate of return at $3.75/lb copper. It is the highest-grade undeveloped copper deposit in the Americas. And as we update the pricing for the feasibility study, we will be moving toward consensus prices, which is today moved in the area $4.50/lb to $4.75/lb of copper,” he said.

Lei noted that while some capital cost escalation was expected owing to inflation and tariffs on certain equipment, the company did not expect material changes from the prior $1.3-billion estimate outlined in the PFS.

FY RESULTS
Hudbay on Friday also released its fourth-quarter and full-year 2025 financial results and announced 2026 annual production and cost guidance. 

The group delivered record revenue of $2.2-billion for the year and exceeded $1-billion in adjusted earnings before interest, taxes, depreciation and amortisation, underpinned by its eleventh consecutive year of meeting consolidated copper production guidance.

Hudbay delivered within its full-year consolidated copper and gold production guidance, with 118 188 t of copper and 267 934 oz of gold produced, despite mandatory wildfire evacuations in Manitoba and temporary operational interruptions in Peru resulting in production deferrals during the year.

“Our diversified operating platform demonstrated exceptional resilience, overcoming external challenges in Manitoba and Peru to generate over $380-million in free cash flow and achieving a third consecutive year of record financial performance. The fourth quarter underscored our commitment to operational excellence. We saw standout performance in Peru driven by high-grade Pampacancha ore, record throughput at the New Britannia mill in Manitoba, and the successful completion of the semiautogenous grinding mill feed system in British Columbia. We are particularly proud to have met our primary production targets for copper and gold while significantly outperforming our twice-improved cost guidance," said Kukielski.

Hudbay is targeting copper output of 124 000 t and gold production of 244 500 oz for 2026.