Hudbay closes US$600 million Mitsubishi investment
HudBay Minerals Inc. [HBM-TSX, NYSE] has announced the closing of a US$600 million strategic investment from Mitsubishi Corp. for a 30% joint venture interest in the Copper World copper-molybdenum-silver deposit in Arizona.
On closing, Mitsubishi contributed US$420 million of cash to Copper World LLC, which owns the fully permitted Copper World Project, and will contribute an additional $180 million in cash to complete its initial investment within 18 months in accordance with the terms of the definitive subscription agreement as described in a Hudbay press release dated August 13, 2025.
Mitsubishi will also fund its pro-rate 30% share of future equity capital contributions required to construct Copper World. “Closing of the JV transaction with Mitsubishi marks the beginning of a long-term strategic partnership, an exciting new chapter for Copper World and an important growth milestone for Hudbay,’’ said Peter Kukielski, Hudbay’s President and CEO.
Feasibility activities for Copper World are underway, with completion expected in mid-2026.
“This strategic partnership will leverage our organization’s complementary strengths to deliver this world-class project that will increase Hudbay’s consolidated copper production by more than 50% and create significant value for all our shareholders,’’ he said. “We are ideally positioned to build one of the next major copper mines in the U.S. and produce “Made in America” copper for the U.S. critical minerals supply chain.’’
On Monday, Hudbay shares rose 2.30% or 69 cents to $30.69. The shares trade in a 52-week range of $30.50 and $8.49.
Hudbay’s operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba and the Copper Mountain mine in B.C. Copper is the primary metal produced by the company, which is complemented by meaningful amounts of gold. The company’s growth pipeline includes the Copper World project in Arizona, the Mason project in Nevada, and the Llaguen project in La Libertad, Peru.
Hudbay has already announced the results of an enhanced pre-feasibility (PFS) study for Phase 1 of its 100%-owned Copper World Copper World copper-molybdenum-silver deposit.
Total initial capital costs are estimated a US$1.3 billion for Phase 1, including the cost associated with construction of a concentrator and associated infrastructure. That compares to an earlier estimate of US$1.9 billion.
“The PFS for Phase 1 of Copper World significantly enhances the economics and de-risks the project through higher levels of engineering, a simplified project design, lower upfront capex and a longer mine life,’’ said Hudbay President and CEO Peter Kukielski.
Phase 1 is a standalone operation requiring state and local permits only. It envisages a mine life of 20 years, which is four years longer than the Phase 1 mine life presented in a preliminary economic assessment published in June, 2022 due to an increase in the capacity for tailings and waste disposition as a result of optimizing the site layout.
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