Hudbay resumes operations at Constancia mine in Peru
Hudbay Minerals Inc. [HBM-TSX, NYSE] says it has resumed operations at its Constancia copper mine Peru. The company shut down operations at the mine on September 22, 2025, due to local protests and what the company described as illegal blockades. Hudbay said it has restarted operations at Constancia and the mill is now at full production levels.
Constancia is one of the lowest cost open-pit sulphides copper mines in South America, boasting a daily mill capacity of 90,000 tonnes.
During the shutdown, the company said it performed preventative maintenance at the mill and on mining equipment. The company said it continues to expect to meet its 2025 production and cost guidance ranges.
On Tuesday, the shares eased 0.50% or 11 cents to $21.85. HudBay shares are trading in a 52-week range of $22.66 and $8.49.
Hudbay’s operating portfolio also includes the Snow Lake operations in Manitoba and the Copper Mountain mine in B.C. Copper is the primary metal produced by the company, which is complemented by meaningful amounts of gold. The company’s growth pipeline includes the Copper World project in Arizona, the Mason project in Nevada, and the Llaguen project in La Libertad, Peru.
Hudbay has said its copper production over the next three years is expected to average 153,000 tonnes, representing a 16% increase from 2023 levels. During the same period, consolidated gold production is expected to average 272,500 ounces, reflecting continued high annual gold production levels in Manitoba and a smoothing of Pampacancha high grade gold zones in Peru over the 2023 to 2025 period.
The company said copper production at the Copper Mountain mine is expected to increase by 32% in 2026 compared to 2024, reflecting operational improvements that are consistent with the Copper Mountain technical report. Hudbay aims to produce between 30,000 and 44,000 tonnes of copper from B.C. this year, rising to 44,000 to 54,000 tonnes in 2026.
Hudbay recently announced the results of an enhanced pre-feasibility (PFS) study for Phase 1 of its 100%-owned Copper World Copper World copper-molybdenum-silver deposit in Arizona,
Total initial capital costs are estimated a US$1.3 billion for Phase 1, including the cost associated with construction of a concentrator and associated infrastructure. That compares to an earlier estimate of US$1.9 billion.
Phase 1 is a standalone operation requiring state and local permits only. It envisages a mine life of 20 years, which is four years longer than the Phase 1 mine life presented in a preliminary economic assessment published in June, 2022 due to an increase in the capacity for tailings and waste disposition as a result of optimizing the site layout.
The second phase of the project is expected to involve an expansion onto federal lands with an extended mine life and enhanced project economics. Phase 11 would be subject to a federal permitting process and has not been included in the PFS results.