 |
| Hudbay Minerals Copper World project |
Strategic Investment Signals Rising Global Demand for U.S. Copper Assets
Mitsubishi’s $600 million investment in Hudbay Minerals’ Copper World project marks a pivotal move in the global copper market. By acquiring a 30% stake in the Arizona-based project, Mitsubishi secures long-term access to U.S. copper resources. This deal includes $420 million upfront and $180 million for development, pending customary closing conditions.
Strengthening U.S. Copper Supply Chain Through Strategic Partnerships
Hudbay Minerals and Mitsubishi will jointly conduct a definitive feasibility study, signaling a path toward a final investment decision by 2026. Mitsubishi’s involvement is viewed as a strategic premium play, with the deal significantly boosting Copper World's projected internal rate of return to around 90%. As a result, Mitsubishi gains a foothold in a major U.S.-based open-pit copper mine, while Hudbay leverages Mitsubishi's global expertise in copper project development.
This joint venture aims to reinforce U.S. copper production, critical for domestic manufacturing, electrification, and energy independence. The project, located on Hudbay-owned private land, is fully permitted and designed to produce 85,000 tonnes of copper annually over 20 years. Construction is expected to support over 1,000 jobs per year, boosting local economic activity.
Additional Streaming Agreement and Tax Impact Strengthen Project Economics
In parallel, Hudbay revised its streaming agreement with Wheaton Precious Metals, introducing a potential $70 million contingent payment tied to mill expansions. Ongoing payments for precious metals are now linked to 15% of spot prices, enhancing financial flexibility. The Copper World project could contribute over $850 million in U.S. tax revenues, underscoring its fiscal and strategic value.
Mitsubishi’s Chief Operating Officer for Critical Minerals, Taro Abe, emphasized the importance of this investment in executing Mitsubishi’s copper growth strategy. Hudbay CEO Peter Kukielski noted the partnership would “deliver domestic copper to the U.S. critical minerals supply chain,” aligning with national priorities in clean energy and resource security.
ScrapInsight Commentary
Mitsubishi’s high-stakes entry into the Copper World JV confirms the rising valuation of U.S. copper assets, driven by decarbonization and EV infrastructure demand. The project, if fully realized, will reinforce U.S. supply resilience while creating a North American copper hub backed by Japanese capital. Regulatory alignment and feasibility outcomes in 2026 will be decisive for price trajectory and project scalability within the North American scrap and primary copper ecosystem.
