TORONTO – Hudbay Minerals is making plans for capital expenditures of $904 million in growth initiatives next year, plus $20.4 million on exploration. The announcement comes as both the Reed copper and Lalor gold-zinc mines are expected to reach commercial production this year.
With two new mines, Hudbay expects production of contained metal in concentrates to top 2013 levels across all key metals. The guidance numbers are 41,000 to 55,000 tonnes of copper, 87,000 to 105,000 tonnes of zinc, and 101,000 to 123,000 oz of precious metals.
At the Lalor mine in northern Manitoba, Hudbay expects the new production shaft to reach commercial operation in the second half of the year. Underground project development continues, including an exploration drift. The nearby Snow Lake concentrator is undergoing a $9-million refurbishing to double capacity to 2,700 t/d by the middle of the year.
At the Reed mine, also in northern Manitoba, project development has advanced a total of 2,079 metres. Initial production was reached in September 2013, and commercial production is expected by Q2 2014.
The bulk of the this year's growth capital, $714 million, is earmarked for the Constancia copper-molybdenum mine and mill project in Peru. The development is expected to cost a total of US$1.7 billion. The pit fleet is arriving on site and is being assembled. The SAG mill is under construction, and installation of the flotation cells is nearly complete. All required construction permits have been issued to Hudbay, and the revised mine plan has been approved. Initial production is expected in late 2014.
Details of all Hudbay operations are posted at www.HudbayMinerals.com.
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