Canadian miner Hudbay Minerals (TSX, NYSE: HBM) is seeking a permit to expand its Constancia copper mine in Peru’s Cusco region, includes upgrades at the Pampacancha satellite pit.

The $210 million project will focus on expanding the mine’s operational capacity and improving processing efficiency, as outlined in a report submitted to Peru’s environmental certifier, Senace.

The expansion plan includes enlarging the Constancia pit — operational since 2014 —, installing new processing equipment, and increasing the height of the tailings dam wall. Details of the project are contained in the fourth technical support report (ITS) tied to Constancia’s environmental impact study. Hudbay expects construction to begin in the fourth quarter of 2025.

The report outlines five key upgrades designed to optimize operations. These include the installation of a third ball mill, two crushers, and advanced ore-sorting machinery to handle harder ore currently being mined. Importantly, these upgrades will not exceed the mine’s approved daily processing capacity of 85,000 tonnes. The project will also retain Constancia’s current operational timeline, with mining activities expected to continue through 2030.

In the past two years, Constancia has faced production challenges. According to data from Peru’s Ministry of Energy and Mines, the mine produced 74,617 tonnes of copper between January and October 2024—a 5.3% decline compared to the same period in 2023.

While results for 2024 are not out yet, the company expected to produce 98,000-120,000 tonnes of copper concentrates.

The mine’s total proven and provable copper reserves sit at 527.2 million tonnes with 0.254% grades.

Source: MINING.COM – Read More