NEW YORK HudBay
Minerals Inc. will reduce capital investments and defer
spending on mining projects after its second-quarter net loss
jumped 78 percent to Canadian $52.69 million ($50.82 million)
from C$29.61 million a year earlier.
company blamed the deeper loss and a 31.2-percent decline in
sales to C$130.66 million ($125.97 million) on lower production
following the closure of its Trout Lake and Chisel North mines
in Manitoba in 2012, as well as a foreign currency translation
loss and lower prices.
An 11-percent drop in
ore production was offset by an increase in production at the
Lalor copper mine project in Manitoba, the company said.
Although still in development, Lalor began production in late
2012, according to the miner.
Due to the net loss,
the company plans to defer the construction of a concentrator
at Lalor, which will save the company $325 million. "We will
have enough production capacity to sustain production through
2016 while we get the new concentrator online," president and
chief executive officer David Garofalo said during a conference
call Aug. 1. The company plans to invest $9 million in its Snow
Lake concentrator in Manitoba to help meet production needs, he
The company said it
will cut an additional $100 million in spending through the end
of 2014 by reducing exploration and deferring some capital
"We remain focused on
achieving our growth objectives, meeting our production and
cost targets at our operations and managing future expenditures
prudently so we can maintain our strong liquidity position
during the execution of our construction programs," Garofalo
said in a statement.
The company is on
track to complete the Constancia copper project in Peru, with
90 percent of engineering done and 40 percent of construction
complete, Garofalo said.