Hudbay Minerals does not disclose in its most recent financial filings that an Arizona court on March 6 revoked the air pollution permit for its proposed $1.5 billion Rosemont copper project.
Hudbay has not issued any press releases concerning the permit revocation nor did the Toronto-based company disclose the fact in its Annual Information Form released on March 30.
Instead, Hudbay’s annual financial disclosure statement submitted to Canadian and U.S. regulators makes an affirmative statement that there only two outstanding permits needed, neither of which is the air permit.
“The remaining required key permits are the final Record of Decision from the U.S. Forest Service and the Clean Water Act Section 404 Permit from the U.S. Army Corps of Engineers,” Hudbay’s AIF states.
Hudbay, however, must also obtain an Air Pollution Control Permit that was previously issued by the Arizona Department of Environmental Quality in 2013 but was rescinded last month by Maricopa County (AZ) Superior Court Judge Crane McClennen.
“This Court concludes there was not substantial evidence to support the action of the AzDEQ, and the action of the AzDEQ was contrary to law, was arbitrary and capricious, and was an abuse of discretion,” the ruling states.
McClennen’s ruling sent Rosemont’s air quality permit back to AzDEQ “for further consideration using the proper criteria.”
The proposed mile-wide, half-mile deep open pit copper mine planned for the Santa Rita Mountains on the Coronado National Forest 30 miles southeast of Tucson cannot be built without the air permit.
The court overturned the air pollution permit after it agreed with evidence presented by plaintiffs showing that the air pollution modeling used by Rosemont was flawed.
It is uncertain whether air pollution generated by the Rosemont mine will be able to meet national air quality standards if Hudbay prepares an accurate model predicting emissions.
A second lawsuit challenging the Rosemont air quality permit is also pending in Pima County Superior Court. Hudbay’s AIF did not mention this lawsuit.
The court’s ruling came a week after a report on risks facing Hudbay in developing the Rosemont mine was released by Save the Scenic Santa Ritas, a Tucson-based nonprofit citizens coalition opposed to the mine. The risk report noted that the two lawsuits posed a serious threat to developing the mine.
Hudbay’s AIF is dated March 30, 2015 and includes information that occurred after Judge McClennen’s March 6 ruling. The AIF, for example, disclosed that Hudbay increased its revolving credit line to $300 million on March 13.
Hudbay’s AIF makes general references to state and federal permits that are needed to “successfully develop the Rosemont project.” Hudbay’s AIF states, for example, that “successful resolution of administrative and legal challenges against permits that have been issued to us” is necessary for Rosemont to be built.
According to the Ontario Securities Commission, the “AIF provides material information about a company and its business in the context of its historical and possible future development. It describes the company and its operations, prospects, risks and other factors that impact its business.”
Canadian Continuous Disclosure rules require a publicly-traded company disclose “risk factors” to investors in their AIF.
THE SSSR HAS SHOW THAT ITS EFFORTS PAY DIVIDENDS . WELL DONE SSSR .
HUDBAY HAVE THEIR OWN STRATEGY IN DEALING WITH MATTERS THAT MAY GIVE IT A NEGATIVE IMAGE . THIS STRATEGY COMES FROM A TEAM OF WELL-PAID LAWYERS . DEALING WITH LAWSUITS IS A TRADEMARK OF THE MINING INDUSTRY WORLDWIDE . THE CANADIAN STOCK AND SECURITIES AGENCIES PAY VERY LITTLE ATTENTION TO THE ACTIVITIES AND REPORTING OF CANADIAN MINING COMPANIES OPERATING OUTSIDE OF CANADA . HUDBAY APPEARS TO HAVE A RELATIVELY CLEAN TRACK RECORD . A SHAREHOLDER REVOLT IS ONE OF THE BEST WAYS TO HOLD HUDBAY ACCOUNTABLE .
HUDBAY DOES NOT APPEAR TO HAVE RAISED ANY RED FLAGS WITH THE CANADIAN AUTHORITIES OVER ITS INTENTIONS TO BRING THE ROSEMONT COPPER PROJECT INTO PRODUCTION . AT LEAST NOTHING HAS APPEARED IN THE PUBLIC DOMAIN TO SUGGEST SUCH .
THE ULTIMATE DECISION ON DEVELOPING THE ROSEMONT COPPER PROJECT RESTS SQUARELY WITH THE US GOVERNMENT AGENCIES RESPONSIBLE FOR ISSUING PERMITS .
HUDBAY HAS TIME AND WIGGLE ROOM IN ITS FAVOUR WHEN METAL PRICES ARE DOWN .
IT IS TIME TO BUILD A POLITICAL CASE AGAINST THE DEVELOPMENT OF THE ROSEMONT COPPER PROSPECT . ALL TAX PAYERS/VOTERS HAVE A SAY AND A RIGHT TO OBJECT .