Due Diligence: Constancia Mine Project
Hudbay Minerals Inc. (Hudbay) acquired the Constancia copper-molybdenum-silver-gold project near Cusco, Peru in 2011. Hudbay completed a Feasibility Study and commenced construction of an open pit mine in September 2012. The Constancia Mine reached commercial production in May 2015.
RPA/SLR provided the Due Diligence report on which the Lenders’ Group based their financing decision, monitored construction and budget, and provided post-completion and operational monitoring.
Based on RPA/SLR's Due Diligence review, the Lenders’ Group provided a Cost Overrun Facility to Hudbay for continued development of the Constancia project. Constancia’s timeline from Feasibility Study (determination of economic viability) to full production was the fastest among recent, similar-sized projects and is one of the lowest cost open pit copper sulphide mines in South America.
The Mine includes the Constancia and Pampacancha open pits, an ore processing plant, a waste rock facility, a tailings management facility, and other ancillary facilities that support the operations. As of January 2020, Constancia has an expected mine life of 16 years.