Hudbay Minerals and Mitsubishi have approved the final investment decision to proceed with construction of the Copper World project in Arizona, advancing what is expected to become one of the largest open-pit copper mines in the U.S. toward first production in the second half of 2029. Hudbay owns 70% of the project, while Mitsubishi holds the remaining 30% through a joint venture established in January 2026.
Copper World requires approximately $2.07 billion of initial growth capital, or approximately $1.84 billion after accounting for a precious metals stream deposit. The project is located about 31 miles southeast of Tucson and is expected to produce an average of 102,000 tonnes of copper annually during its first 10 years.
The definitive feasibility study outlines a 15-year base-case mine life using proven and probable reserves of approximately 390 million tonnes grading 0.47% copper. Hudbay estimates average cash costs of $1.65 per pound during the first 10 years.
At a long-term copper price of $5 per pound, the base case has an estimated after-tax net present value of approximately $1.2 billion and an internal rate of return of roughly 17%. At $6 per pound copper, the estimated NPV increases to approximately $2.3 billion with an IRR of about 22%.
The development plan initially includes a 60,000-ton-per-day concentrator. Hudbay plans to add an in-pit crushing and conveying system and increase concentrator capacity to 90,000 tons per day beginning in year five. The expansion is expected to increase average annual copper production to approximately 120,000 tonnes during years six through 10.
Hudbay also outlined an extension case that would expand mining activity onto federal lands beginning in year 10, subject to additional permitting. That scenario could extend Copper World’s mine life to 37 years and support average production of approximately 117,000 tonnes of copper annually during years 11 through 20.
The project’s financing plan includes Mitsubishi’s $600 million initial joint venture investment, a $230 million precious metals stream deposit from Wheaton Precious Metals, approximately $650 million of anticipated project-level debt financing, equipment financing, and additional equity contributions from Hudbay and Mitsubishi. Hudbay expects its own capital contributions to total approximately $500 million, with its first contribution deferred until 2028.
Once operational, Copper World is expected to help increase Hudbay’s consolidated annual copper production to approximately 250,000 tonnes, roughly doubling its current production levels.
The project is also expected to create more than 1,000 construction jobs, approximately 500 permanent operating positions, and as many as 3,000 indirect jobs in Arizona. Hudbay estimates Copper World could generate more than $1.1 billion in total U.S. taxes over the 15-year base-case mine life, increasing to approximately $3.7 billion under the 37-year extension scenario.
KEY QUOTES:
“The approval of the development of Copper World represents a significant milestone for Hudbay, our partners at Mitsubishi, our stakeholders, and the copper landscape in the U.S. Copper World is one of the most attractive copper growth projects in the Americas, offering some of the highest copper grades, lowest cash costs and favourable capital intensity. This project adds more than 100,000 tonnes of annual copper production over the first 10 years, and the DFS demonstrates the full potential of the project in the Extension Case, delivering higher annual copper production for more than 30 years. It also adds a fourth operating asset to our diversified operating platform and further enhances our tier one operating jurisdictions profile with the addition of the U.S. We are continuing to set the new gold standard in copper as we embark on building a leading copper district in Arizona.”
Peter Kukielski, Chief Executive Officer Of Hudbay
“The robust Copper World DFS and our joint final investment decision paves the road to production in the second half of 2029, establishing a low-capital intensity, high-margin operation that will generate strong long-term returns for Hudbay, Mitsubishi and our stakeholders. We successfully executed a disciplined capital allocation strategy and ideal funding plan that only requires Hudbay to fund one-quarter of the project capital cost and defers Hudbay’s first capital contribution to 2028, resulting in superior IRRs. We are well-positioned to fund our share of the Copper World project capital and make generational investments in our operating mines with existing cash on hand and strong free cash flow from our diversified operations to double our copper production per share.”
Eugene Lei, President And Chief Financial Officer Of Hudbay And Chair Of The Copper World Joint Venture Board
“The final investment decision for Copper World marks the beginning of a new phase for the joint venture. We are pleased to move forward with the project and advance it toward first production in the second half of 2029. Copper World is important to our growth strategy and the U.S. copper landscape, with the potential to deliver lasting benefits to communities and stakeholders. As a committed long-term partner, we continue to leverage our broad business footprint in North America and extensive experience in mining project development and marketing to maximize the value of the Copper World joint venture.”
Taro Abe, Critical Minerals Division COO, Mineral Resources Group At Mitsubishi
