VANCOUVER (miningweekly.com) - Base metals producer Hudbay Minerals has received a positive record of decision (ROD) from the US Forest Service (USFS) for its 80%-owned Rosemont project, in Arizona.
"This decision brings us another step closer to being able to build a modern mine that will fulfil the requirements of its permits, create jobs and strengthen the local economy Hudbay's Arizona business unit VP Patrick Merrin stated on Wednesday.
AdvertisementThe USFS responsible official for the Rosemont copper project, decided to sanction Alternative 4 - Barrel Alternative' for implementation, positioning the mine three steps from being able to start construction.
The Barrel alternative for the mine is one of five scenarios studied, and relatively similar than the previous tentative selection for the mine nearly three-and-a-half years ago, before the project was delayed because an endangered ocelot was discovered near the site in April 2014.
Coronado National Forest Supervisor Kerwin Dewberry wrote in the ROD that selected action will directly disturb the fewest acres of riparian areas of any action alternative, and that with the exception of the selected action, none of the action alternatives are acceptable from an air quality perspective.
The selected action will also result in less overall impact in animal movement corridors and connectivity between wildlife habitats. Under the Barrel alternative, the sensitive McCleary Canyon will remain largely intact, which is the most physically and biologically diverse of the nearby canyons and which harbors the rare plant Coleman's coral-root.
Before construction can start, the USFS must also separately approve a detailed plan outlining the mine's day-to-day operations. Hudbay will also have to develop a reclamation plan and submit a bond guaranteeing payment for the reclamation work.
The US Army Corps of Engineers must also approve a federal Clean Water Act Section 404 permit for the project, including the final version of the habitat mitigation and monitoring plan.
The Rosemont mine's main opposition group Save the Scenic Santa Ritas (SSSR) slammed the ROD, once more saying it is "premature". "...the Rosemont decision document is a waste of taxpayers' money and is nothing more than a public relations victory for a foreign mining company and its investors," SSSR president Gayle Hartmann said in a statement.
"This mine is far from reality - SSSR will continue to fight it in every relevant arena. The stakes are too high to do otherwise," Hartmann avowed, adding that the project threatens drinking water along with critical desert aquatic habitats.
Hudbay acquired Rosemont in July of 2014 through its takeover of Augusta Resource Corp. It is an openpit copper/molybdenum/silver porphyry/skarn deposit located, in Arizona, some 50 km south-east from Tucson.
The project is located close to several large porphyry-type producing copper mines and is expected to be one of the largest copper mines in the US, accounting for about 10% of total US copper output.
A March feasibility study for Rosemont estimated the project to have a 19-year mine life and demonstrates robust economics with a projected 15.5% after-tax project internal rate of return on the estimated $1.9-billion project capital cost, based on a copper price of $3/lb.
Rosemont is expected to have average output over the first ten years of 127 000 t of copper at an average cash cost of $1.14/lb of copper and sustaining cash cost of $1.59/lb of copper.
Copper prices have fallen back from February highs of about $2.75/lb to about $2.59/lb on Thursday.