The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Despite Hudbay's financial challenges, its next northern Manitoba mines remain on schedule and on budget. As of June 30, the company says it had expended about 46 per cent of total capital costs at Lalor and about 65 per cent at Reed. At Lalor that equated to $365 million of a total budget of $794 million. Hudbay has also entered into $63 million in commitments for the project. During the second quarter of this year, Hudbay hoisted 106,723 tonnes of ore from the ventilation shaft at Lalor at a copper grade of 0.83 per cent and zinc grade of 10.34 per cent. Underground project development has continued, with completion of the 910-metre level and the 955-metre level load out facility. Hudbay has also started work on the #1 ore pass and the settling cones. Commerce Construction work for the main ore and waste-handling systems, as well as the main dewatering systems, are to commence before the end of September. As of July 30, Lalor's main production shaft had been sunk to about 882 metres, making it roughly 90 per cent complete. Shaft-sinking is expected to be completed in late 2013. Upon completion of sinking, the installation of the steel sets and guides, as well as the headframe changeover, will begin. Hudbay has also started construction on the main intake fan systems and main substation, which are both scheduled to be completed by the end of the year. See '$47 M' on pg. Continued from pg. Ore production at Lalor is expected to transition from the ventilation shaft to the main production shaft by the second half of 2014, subject to regulatory approval. Meanwhile at the Reed mine, Hudbay had invested about $47 million of a total estimated project cost of $72 million as of June 30. It had also entered into $10 million worth of commitments. Also as of June 30, Reed's underground ramp had advanced some 819 metres. Reed is on track for initial production by the fourth quarter of 2013 and full production of about 1,300 tonnes of ore per day by the first quarter of 2014, subject to regulatory approval. In Peru, Hudbay now anticipates a 15 per cent increase in capital costs for its Constancia project, assuming initial production in late 2014 and full production in the second quarter of 2015. Hudbay said the biggest factor behind the cost escalation relates to heavy civil earthworks, which were affected by higher-than-estimated volumes of material to be moved, other geotechnical issues and lower-than-anticipated wet weather productivity. Work is continuing at Constancia according to plan, Hudbay said, with the project more than 40 per cent complete. _ With notes from a Hudbay news release
