TSX- and NYSE-listed Hudbay has received an aquifer protection permit for its Copper World project from the Arizona Department of Environmental Quality (ADEQ).

The permit, issued after a thorough process involving comprehensive data submission and public consultation, brings Copper World closer to becoming fully permitted.

Copper World is expected to produce 85 000 t/y of copper over a 20-year mine life, positioning it as a significant contributor to the US domestic copper supply chain.

The project aims to provide “Made-in-America” copper cathode, which will be sold entirely to domestic customers, making Copper World the third-biggest cathode producer in the US.

“Receiving the aquifer protection permit is a significant de-risking event for Copper World as it brings us one step closer to being fully permitted,” commented Hudbay president and CEO Peter Kukielski.

“Copper World represents Hudbay’s next significant copper growth project and is expected to increase consolidated annual copper production by more than 50% from current levels,” he said.

The aquifer protection permit is the second of three essential state-level permits required for the project's sanctioning. The mined land reclamation plan was previously approved, despite a legal challenge that was dismissed in May 2023. The final key permit, the air quality permit, is currently undergoing a public comment period, which is expected to conclude in September.

Once operational, Copper World is projected to create over 400 direct jobs and up to 3 000 indirect jobs in Arizona. The project is expected to contribute more than $850-million in US taxes over its initial 20-year mine life, including about $170-million to the state of Arizona. Hudbay plans to offer competitive wages and benefits and intends to partner with local apprenticeship readiness and workforce training programs to fill skilled and technical positions.

With the receipt of the aquifer protection permit, Hudbay plans to begin feasibility studies for Copper World, with an expected increase in 2024 growth capital spending in Arizona by an additional $25-million.

Hudbay is also expanding its team in Arizona to support the development of Copper World, with key appointments including Javier Del Rio as senior vice president (VP) of the US business unit and Warren Flannery as VP of Copper World.

The company has also hired Robert Comer as executive director, external affairs and legal, bringing over 30 years of US permitting and mining law experience to the project.

Hudbay expects to be in a position to sanction Copper World by early 2026, contingent on the successful completion of the permitting process and the evaluation of other investment opportunities as part of the group’s capital allocation strategy.