What were some of the milestones that Hudbay achieved globally?

Hudbay has achieved exceptionally positive global performance, operating in various locations such as Lalor in Manitoba, Canada, an underground mine with a processing capacity of 5,300 t/d approximately; Copper Mountain in British Columbia, Canada, an open-pit mine with a processing capacity of 45,000 t/d approximately, which features a 28 haul truck fleet and Trolley Assist system. In the US, projects like Copper World in Southern Arizona and Mason in Nevada, with around 2.2 million tons in M&I resources, complement our portfolio. The Constancia mine and projects like Caballito, Maria Reyna, and Llaguen are crucial in Peru. 

In 2023, we acquired Copper Mountain in B.C., and we completed Rockcliff's acquisition in Manitoba, providing access to Talbot's property and other satellite deposits for a promising future pipeline. Additionally, we have an exploration agreement with Marubeni in Manitoba to explore the Greenstone Belt. Lastly, Hudbay's Peruvian business unit successfully navigated socio-political complexities while mining Constancia and Pampacancha, operating within expected guidelines.

Could you elaborate on the efforts implemented at Constancia to reduce greenhouse gas emissions?

Constancia's processing plant operates at full capacity, optimizing production, while the nearby Pampacancha satellite deposit enhances the average ore grade. Hudbay's business unit has maintained production within reasonable indices, with a processing capacity of around 90,000 t/d and a recovery rate of around 84%. 

Hudbay has implemented significant efforts at Constancia to reduce greenhouse gas emissions. Thus, we engaged with ENGIE for renewable energy supply from 2026 to 2035. Additionally, energy audits have identified optimization opportunities, focusing on reducing mining waste. 

How have new technologies impacted overall operational efficiency across Hudbay's operations?

Notable investments include Magnetic Aggregation equipment for ultrafine particle filtration and a system accelerating bubble discharge to enhance copper and molybdenum recovery in the concentrator plant. We employ machine learning in throughput modeling at Constancia, Peru, achieving over 90% effectiveness in predicting mill events. This allows optimized metallurgical responses by anticipating mineral behavior from crusher discharge to the processing plant. 

What are some challenges the copper sector faces?

We are devoted believers in the promising future of copper; however, there are challenges to address. The impact of declining grades and depleting resources reduces reserves each year. From a net present value perspective, initially, operations prioritize high-grade material, resulting in decreased metal production as lower-grade deposits are processed later. This phenomenon is ubiquitous across all mining operations. Moreover, project approvals and financing now experience significant delays. This makes the outlook on the supply side less optimistic. 

Additionally, in 2024, global demand is estimated to grow by 3%, offering a contrasting perspective. Copper production has declined in the United States from around 2 million t/y in 2000 to approximately 1.3 million, echoing a similar trend at Codelco. 

Finally, the costs, in real terms, are also not easing. The operational landscape becomes more complex, challenging and expensive. As a result, profit margins tighten, necessitating a focus on increased efficiency. 

With Hudbay's global presence, what lessons can each jurisdiction you operate in learn from one another?

In Canada, specifically in BC, we are currently incorporating an electric shovel, electric drill and renewable diesel, a move incentivized by the positive impact of carbon tax credits. This encouragement promotes the adoption of new technologies and underscores our commitment to sustainability. 

Positive initiatives in Peru, such as "Obras por Impuestos" (work for taxes), stand out. This model allows local companies to play a pivotal role in addressing community requirements. Their proximity ensures a more effective and timely response than the central government, fostering a model that could be exported. 

What are Hudbay’s goals for the next 12 months?

First, securing permits for Copper World and initiating our feasibility study, followed by the construction phase. Additionally, our focus remains on stabilizing production at Copper Mountain and continuing to optimize Lalor in Manitoba. Turning to Peru, we have a significant interest in the development of Maria Reyna and Caballito. Realizing this ambition hinges on continuing our exploration program in these two deposits. In Peru, we emphasize that Constancia is not the endpoint but the starting point.