TORONTO, ONTARIO--(Marketwire - June 18, 2009)
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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)
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