Hudbay Minerals Plans to Invest $210 Million to Expand Its Constancia Copper Mine

According to mining.com, Canadian miner Hudbay Minerals (Toronto Stock Exchange and New York Stock Exchange: HBM) is applying for permits to expand its Constancia copper mine in the Cusco region of Peru, including upgrades to the Pampacancha satellite pit.

As outlined in the report submitted to Peru's environmental certification agency, Senace, this $210 million project will focus on increasing the mine's operational capacity and improving processing efficiency.

The expansion plan includes enlarging the Constancia pit, which has been in operation since 2014, installing new processing equipment, and raising the height of the tailings dam wall. Detailed information about the project is included in the fourth technical support report (ITS) related to the Constancia Environmental Impact Study. Hudbay expects construction to begin in Q4 2025.

The report outlines five key upgrades aimed at optimizing operations. These include the installation of a third ball mill, two crushers, and advanced ore sorting equipment to process the harder ore currently being mined. Importantly, these upgrades will not exceed the mine's approved daily processing capacity of 85,000 mt. The project will also maintain Constancia's current operational timetable, with mining activities expected to continue until 2030.

Over the past two years, Constancia has faced production challenges. According to data from Peru's Ministry of Energy and Mines, the mine's copper production from January to October 2024 was 74,617 mt, a 5.3% decrease compared to the same period in 2023.

While the full-year performance for 2024 is yet to be released, the company expects to produce 98,000-120,000 mt of copper concentrates.

The proven and probable copper reserves at the Constancia mine are 527.2 million mt, with a grade of 0.254%.