Hudbay Minerals Inc. (“Hudbay” or the “company”)
(TSX, NYSE: HBM) today announced the
filing of the company’s initial brief (“Hudbay Brief”) with the
U.S. Court of Appeals for the Ninth Circuit in relation to the U.S.
District Court for the District of Arizona’s (“District Court”)
decision in July 2019, which revoked the U.S. Forest Service’s
(“Forest Service”) issuance of the Final Record of Decision
(“FROD”) for the Rosemont project in Arizona. The FROD was issued
in June 2017 after a thorough process involving 17 co-operating
agencies at various levels of government. The filing of the Hudbay
Brief follows the U.S. federal government’s initial brief
(“Government Brief”) which was filed last week. The briefs explain
how both Hudbay and the government believe that the District Court
misinterpreted federal mining laws and Forest Service regulations
as they apply to Rosemont.
“Today’s filing represents the next milestone in
our efforts to correct what we believe is a misinterpretation by
the District Court of the current laws and regulations that govern
mining operations on public lands,” said Peter Kukielski, President
and Chief Executive Officer. “We believe, based on the arguments
filed by Hudbay and the government, that the appellate court will
reverse the District Court’s decision, allowing us to move forward
with constructing and operating the Rosemont project.”
Both briefs assert that current law broadly
authorizes mining-related activities, such as ore processing and
tailings storage, to be conducted on open Forest Service lands. The
District Court’s determination that the Forest Service’s mining
regulations do not apply to mining activities unless those
activities are conducted entirely on valid mining claims is
contrary to plain language readings of the general mining law, as
well as Forest Service regulations, which explicitly allow for
mining-related activity to occur on lands not covered by any mining
claim:
“All functions, work, and activities in connection with
prospecting, exploration, development, mining or processing of
mineral resources… (are authorized) regardless of whether said
operations take place on or off mining claims.” - 36 Code of
Federal Regulations §§ 228.1, 228.3 (emphasis added). |
The Hudbay Brief states, “Prior to the District
Court’s decision, no court had ever held that a mining plan of
operations may only be approved if all mining and mining-related
operations will occur exclusively on valid mining claims. The
District Court imposed this novel requirement on the Forest Service
after misreading both the relevant statutes, which provide a broad
grant of free and open access to federal lands for mining and
mining-related operations, and the relevant regulations, which
authorize the Forest Service to approve those operations on or off
of mining claims." Similarly, the Government Brief states, “The
district court’s decision … rested on a fundamental
misinterpretation of the Mining Law and the regulatory scheme
applicable to the (U.S. Forest) Service’s review of mining plans.
That decision should be reversed.”
“We believe that the brief filed today
thoroughly demonstrates that the District Court misinterpreted
federal mining laws and ignored more than 150 years of precedent,”
said Andre Lauzon, Vice President of Hudbay’s Arizona Business
Unit. “The brief also points out that this decision, if not
reversed, will disrupt the longstanding policy of the U.S. federal
government to promote mining on public lands, including within
national forests.”
Hudbay anticipates a final decision in the
appeal process in late 2021.
Once in production, the Rosemont mine is
expected to be one of the largest copper mines in the United
States, stimulating billions in new economic activity and creating
thousands of new direct and indirect, high-paying jobs. The copper
mined at Rosemont will support a cleaner, interconnected economy by
supplying critical materials according to some of the world’s most
stringent labor and environmental standards. From solar panels to
electric vehicles—copper is the key element to the green energy
future.
Related Links
The full Hudbay Brief:
https://hudbayminerals.com/files/doc_downloads/2020/06/22/Rosemont-Hudbays-Brief.pdf
The full Government Brief:
https://hudbayminerals.com/files/doc_downloads/2020/06/22/200615-Rosemont-Government's-AOB.pdf
Rosemont appeal fact sheet:
https://s23.q4cdn.com/405985100/files/doc_downloads/2020/06/22/Hudbay_Appeal_Factsheet_Final.pdf
Forward-Looking Information
This news release contains forward-looking
information within the meaning of applicable Canadian and United
States securities legislation. Forward-looking information
includes, but is not limited to, potential outcomes of the legal
challenges against Rosemont. Forward-looking information is not,
and cannot be, a guarantee of future results or events.
Forward-looking information is based on, among other things,
opinions, assumptions, estimates and analyses that, while
considered reasonable by the company at the date the
forward-looking information is provided, inherently are subject to
significant risks, uncertainties, contingencies and other factors
that may cause actual results and events to be materially different
from those expressed or implied by the forward-looking
information.
The material factors or assumptions that Hudbay
identified and were applied by the company in drawing conclusions
or making forecasts or projections set out in the forward-looking
information include, but are not limited to, the timing and
possible outcome of pending litigation related to the Rosemont
permits.
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation), as well as the risks discussed under the
heading “Risk Factors” in Hudbay’s most recent Annual Information
Form.
Should one or more risk, uncertainty,
contingency or other factor materialize or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, you should not place undue reliance on forward-looking
information. Hudbay does not assume any obligation to update or
revise any forward-looking information after the date of this news
release or to explain any material difference between subsequent
actual events and any forward-looking information, except as
required by applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a diversified mining
company primarily producing copper concentrate (containing copper,
gold and silver) and zinc metal. Directly and through its
subsidiaries, Hudbay owns three polymetallic mines, four ore
concentrators and a zinc production facility in northern Manitoba
and Saskatchewan (Canada) and Cusco (Peru), and copper projects in
Arizona and Nevada (United States). The company’s growth strategy
is focused on the exploration, development, operation and
optimization of properties it already controls, as well as other
mineral assets it may acquire that fit its strategic criteria.
Hudbay’s vision is to be a responsible, top-tier operator of
long-life, low-cost mines in the Americas. Hudbay’s mission is to
create sustainable value through the acquisition, development and
operation of high-quality, long-life deposits with exploration
potential in jurisdictions that support responsible mining, and to
see the regions and communities in which the company operates
benefit from its presence. The company is governed by the Canada
Business Corporations Act and its shares are listed under the
symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange
and Bolsa de Valores de Lima. Further information about Hudbay can
be found on www.hudbay.com.
For further information, please contact:
Candace BrûléDirector, Investor Relations(416)
814-4387candace.brule@hudbay.com
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