Hudbay, Mitsubishi approve Copper World construction
Hudbay Minerals Inc. [HBM-TSX, NYSE] has announced the results of a definitive feasibility study (DFS) and related pre-feasibility studies for its 70%-owned Copper World Project in Arizona. Located 50 kilometres southeast of Tucson, Copper World is 30%-owned by Mitsubishi Corp. under a joint venture agreement reached in January, 2026.
Supported by robust DFS, Hudbay and Mitsubishi have formally approved the final investment decision to proceed with the construction and development of Copper World as the next major copper mine in the Unites States, with first production targeted for the second half of 2029.
The company said Copper World will be one of the largest open-pit copper mines in the U.S., and is expected to double Hudbay’s annual copper production levels.
The DFS outlines annual copper production of 102,000 tonnes over the first 10 years, an 11% increase when compared to 92,000 tonnes in Hudbay’s 2023 pre-feasibility study. The study envisages annual cash costs of US$1.65 a pound over the first 10 years, positioning the stie as one of the lowest cost open-pit copper mines in the U.S. Hudbay’s consolidated annual copper production is expected to increase to approximately 250,000 tonnes, doubling current production levels, with other brownfield growth projects underway.
The base case for the Copper World project contemplates a 15-year mine life utilizing mineral reserves, requires only state and local permits and contemplates a comparable total mill feed tonnage to the 2023 pre-feasibility study (PFS).
The project ranks as one of the highest-grade open pit copper projects in the Americas with proven and probable reserves of 390 million tonnes at 0.47% copper. Measured and indicated resources of 1.2 billion tonnes (inclusive of reserves) at 0.40% copper have the potential to extend the mine life for decades to a total of 37 years.
The funding plan for the project includes Mitsubishi’s US$600 million initial joint venture equity investment, Wheaton Precious Metals Corp.’s (WPM-TSX, WPM-NYSE) US$230 million deposit for the existing precious metals stream, followed by approximately US$650 million in anticipated project-level debt financing, representing less than 30% leverage. The balance of funding from Hudbay and Mitsubishi’s pro-rate equity capital contributions is deferred to 2028.
On Wednesday, Hudbay shares rose 0.04% or 12 cents to $33.15. The shares trade in a 52-week range of $44.48 and $20.26.
The base case further optimizes the 2023 PFS mine plan with an in-pit crushing and conveying system in year four and an expansion of the concentrator from 60,000 tons per day to 90,000 tones per day in year five. The concentrator expansion enables a 43% increase in average annual copper production to 120,000 tonnes in years six to 10, compared to 84,000 tonnes in the first five years.