Hudbay has announced the community of Chilloroya has formally approved a surface rights agreement with Hudbay for the Pampacancha satellite deposit located near the Constancia mine in Peru. With the completion of this agreement the company expects to be mining ore from the deposit in late 2020.
Hudbay President and CEO Peter Kukielski says Pampacancha adds high grade copper and gold ore to the Constancia mine plan lowering future cash costs for the mine and increasing operating cash flows at Constancia. He adds Constancia is one of the lowest cost open pit copper mines in South America.
Hudbay expects growth capital expenditures associated with project development and acquiring the surface rights for Pampacancha to be approximately 70 million dollars in this year. Some additional capital costs remain outstanding in recognition of current uses of the land by certain community members and the company intends to enter into agreements to address these matters prior to commencing mining activities.