TORONTO, ONTARIO, Jun 18, 2009 (Marketwire via COMTEX News Network)
-- EDITORS' NOTE: Smelter photos and media backgrounder available on
HudBay's website at www.hudbayminerals.com.
HudBay
Minerals Inc. ("HudBay" the "company") (TSX:HBM) expects to close its
copper smelter in Flin Flon, Manitoba before July 1, 2010, and its
copper refinery in White Pine, Michigan shortly thereafter.
The
financial impact of the smelter closure on the company will be minimal,
as the processing costs from the sale of concentrates are expected to be
similar. Further, the smelter is part of an integrated complex, and
reclamation costs, which have been fully accounted for on the company's
balance sheet, only occur when the entire Flin Flon metallurgical
complex ultimately shuts down. HudBay anticipates manpower reductions as
a result
of the closure to be approximately 225 in Flin Flon and 65 at the White
Pine Copper Refinery.
"The Flin Flon copper smelter has
been a great asset and one of the centerpieces of our operations for
over 80 years," said Peter R. Jones, HudBay's chief executive officer.
"Today's business realities, combined with the age of the plant and
regulatory changes, make continued operation of this plant impractical
and uneconomic. We are strongly positioned post-smelter closure with our
metallurgical facilities, the 777 and Trout Lake mines, and an
impressive project pipeline including Fenix and Lalor."
"We will
work closely with our employees, unions, and affected local, provincial
and state governments, as well as other stakeholders, to mitigate the
impact of the closures," added Tom A. Goodman, senior vice president,
operations. "After the closures, HudBay will remain a fully integrated
zinc producer with its state-of-the-art, environmentally-friendly zinc
processing facilities in Flin Flon and Brampton."
Particulate and sulphur dioxide emissions to the atmosphere will be
essentially eliminated from the Flin Flon operations once the smelter is
closed, and the integrated metals facilities will be among the most
environmentally friendly in North America in this regard. HudBay is
building a filtration plant that will enable the company to ship its
copper concentrate off-shore, if necessary. HudBay expects to have sales
arrangements for its copper concentrate in place by the time the
smelter closes.
The copper smelter processes copper concentrates
into anodes, which are then sent by rail to White Pine, Michigan, where
the anodes are refined into market standard copper cathodes. The smelter
has an annual capacity of approximately 90,000 tonnes of copper anode.
In 2008, HudBay produced approximately 82,458 tonnes of copper, of which
7,777 tonnes was produced from recycled White Pine
spent anode. Approximately 32% of the concentrate treated at the copper
smelter in 2008 was purchased concentrate.
About HudBay Minerals Inc.
HudBay
Minerals Inc. (TSX:HBM) is a Canadian integrated mining company with
assets in North and Central America principally focused on the
discovery, production and marketing of base metals. The company's
objective is to maximize shareholder value through efficient operations,
organic growth and accretive acquisitions, while maintaining its
financial strength. A member of the S&P/TSX Composite Index and the
S&P/TSX Global Mining Index, HudBay is committed to high standards
of corporate governance and sustainability.
Forward-looking Information
This
news release contains "forward-looking information" within the meaning
of applicable securities laws. Forward-looking information includes but
is not limited to the
date of the expected closure of the smelter and refinery, the impact of
the closures on HudBay and its results, the ability of the company to
sell copper concentrates produced at its mine, other information
regarding the closures, the expected environmental impact of our
metallurgical facilities after the closure, and the company's strategies
and future prospects. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as "plans",
"expects", or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", "understands" or
"does not anticipate", or "believes" or variations of such words and
phrases or statements that certain actions, events or results "will",
"may", "could", "would", "might", or "will be taken", "occur", or "be
achieved". Forward-looking information is based on the views,
opinions, intentions and estimates of management at the date the
information is made, and is based on a number of assumptions and subject
to a variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
anticipated or projected in the forward-looking information (including
the actions of other parties who have agreed to do certain things and
the approval of certain regulatory bodies).
Many of these
assumptions are based on factors and events that are not within the
control of HudBay and there is no assurance they will prove to be
correct. Factors that could cause actual results or events to vary
materially from results or events anticipated by such forward-looking
information include risks associated with the mining industry such as
economic factors (including future commodity prices, currency
fluctuations and
energy prices), failure of plant, equipment, processes and
transportation services to operate as anticipated, dependence on key
personnel and employee relations, environmental risks, government
regulation, actual results of current exploration activities, possible
variations in ore grade or recovery rates, permitting timelines, capital
expenditures, reclamation activities, land titles, and social and
political developments and other risks of the mining industry, as well
as those risk factors discussed in the company's Annual Information Form
dated March 30, 2009, which risks may cause actual results to differ
materially from any forward-looking statement.
Although HudBay
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking information, there may be other factors that cause
actions, events or results not to be anticipated, estimated or intended.
There can be no assurance that forward-looking information will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such information. HudBay undertakes
no obligation to update forward-looking information if circumstances or
management's estimates or opinions should change except as required by
applicable securities laws, or to comment on analyses, expectations or
statements made by third parties in respect of HudBay, its financial or
operating results or its securities. The reader is cautioned not to
place undue reliance on forward-looking information.
(HBM-G)
SOURCE: HudBay Minerals Inc.
Investor Relations contact:
HudBay Minerals Inc.
Annemarie Brissenden, Manager, Investor Relations
(416) 362-0615
annemarie.brissenden@hudbayminerals.com
Media contact for Manitoba and Saskatchewan:
HudBay Minerals Inc.
Tom A. Goodman, Senior Vice President, Operations
(204) 687-2380
Tom.goodman@hbms.ca
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