April 10, 2012 / 2:54 PM / in 6 years

HudBay eyes further growth in Peru

TORONTO, April 10 (Reuters) - Base metals miner HudBay Minerals is looking at expanding its asset base in Peru as it seeks to create a new hub that replicates the successes enjoyed at its mines in the Canadian province of Manitoba, the company’s top executive says.

HudBay, which traces its roots back more than 80 years to the Flin Flon mine in northern Manitoba, has used much of the infrastructure developed at Flin Flon for decades, moving gradually from one deposit to the next.

“We are trying to do the same thing in Peru,” said HudBay Chief Executive David Garofalo. “We are building a large 70,000 to 80,000 tonne a day concentrator there and we’ve tied up about 22,000 hectares of real estate along the trend and we’re looking to tie up more.”

“When you build a concentrator of that scale, you expect it will be operating for 50 or 60 years, not 15 or 20 years, much like the concentrators we built in Manitoba. Those were built with 10 or 12 year deposits underneath them at the time, but here they are operating many, many decades hence.”

Toronto-based HudBay made its initial foray into Peru via its C$520 million ($521 million) acquisition of miner Norsemont in 2011. That deal gave HudBay control of the Constancia copper-gold project in southern Peru, which is set to begin production around 2015.

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