Toronto, Ontario - January 9, 2009 - HudBay Minerals Inc. (TSX:HBM)
has determined that it will suspend operations at its Chisel North mine
and concentrator in Snow Lake, Manitoba due to depressed prices of base
metals, and the economic downturn. The company will place both the mine
and concentrator under care and maintenance until economic conditions
warrant re-evaluation.
"We recognize this will be difficult for Snow Lake, and we're
committed to working with the community throughout this challenging
period. We regret the impact this will have on the community and our
employees. I'd like to thank the Chisel North operations team for its
contribution to the growth of HudBay," said Allen J. Palmiere, the
company's chief executive officer. "The discovery of the Lalor deposit
illustrates the excellent exploration opportunities available in the
area, and I believe the Chisel North mine and the Snow Lake concentrator
remain important assets in the ongoing feasibility and future
productivity of the Lalor deposit."
HudBay will work closely with its employees and the unions as well as
the Province of Manitoba to assist in mitigating the impact the
suspension will have on the approximately 100 workers at the mine and
concentrator. The company expects the mine to suspend operations in late
February, with closure of the concentrator to occur by the end of May. A
small group of employees will be retained to keep the facilities on
care and maintenance.
HudBay will work to ensure a safe suspension of operations, and is
committed to continuing to maintain high environmental standards during
the care and maintenance period. The company will continue to monitor
and manage the water treatment plant, as well as monitor the tailings
management facility on an ongoing basis.
The Chisel North mine is located approximately 705 kilometres from
Winnipeg, Manitoba. In the nine months ended September 30, 2008, it
produced 243,078 tonnes of ore, and has produced approximately 2.5
million tonnes of ore between June 2000, when commercial production
began, and September 30, 2008.
ABOUT HUDBAY MINERALS INC.
HudBay is a leading base metals mining company with assets in North and
Central America. The company is focused on growing its business through
operational optimization, strategic investing, mine development and
exploration. An integrated mining company, HudBay operates zinc and
copper mines, concentrators and metal production facilities in northern
Manitoba and Saskatchewan, a zinc oxide production facility in Ontario,
the White Pine Copper Refinery in Michigan, and owns the Fenix nickel
project in Guatemala. In addition to its primary products, the company
also produces gold, silver and zinc oxide. HudBay is a member of the
S&P/TSX Composite Index and the S&P/TSX Global Mining Index.
FORWARD-LOOKING INFORMATION
This news release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, information with respect to
the closure of the Snow Lake operations, HudBay's future production,
financial results and exploration plans. 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", or "does not anticipate", or "believes" or variations of
such words and phrases or state that certain actions, events or results
"may", "could", "would", "might", or "will be taken", "occur", or "be
achieved".
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level
of activity, performance or achievements of HudBay to be materially
different from those expressed or implied by such forward-looking
information, including risks associated with the mining industry such as
economic factors, future commodity prices, results of exploration
activities, government regulation and approvals, environmental and
reclamation risks, costs, timing and amount of future production,
variations in ore grade and recovery rates, failure of plant, equipment
or processes to operate as anticipated, permitting timelines, capital
expenditures, changes in project parameters, care and maintenance costs,
as well as those factors discussed in the section entitled "Risk
Factors" in HudBay's Annual Information Form for the year ended December
31, 2007, available on www.sedar.com.
Although HudBay has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such information. Accordingly, readers should not place undue
reliance on forward-looking information. HudBay does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
This news release and the information contained herein does not
constitute an offer of securities for sale in the United States and
securities may not be offered or sold in the United States absent
registration or exemption from registration.
(HBM-G)
For further information, please contact: HudBay Minerals Inc.
Annemarie Brissenden Manager, Investor Relations (416) 362-0615 Email: annemarie.brissenden@hudbayminerals.com Website: www.hudbayminerals.com