Published: October 21, 2026 |
Hudbay Minerals has released the results of the definitive feasibility study and related pre-feasibility studies for its 70 percent owned Copper World Project in Arizona, located approximately 50 kilometers (31 miles) southeast of Tucson. Copper World is 30 percent owned by Mitsubishi Corporation.
Supported by a 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 U.S. with first production targeted for the second half of 2029. Hudbay will be filing a technical report pursuant to National Instrument 43-101 containing the results of the DFS for Copper World.
“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.,” said Peter Kukielski, Hudbay’s chief executive officer.
“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 favorable capital intensity. This project adds more than 100,000 tonnes of annual copper production over the first ten 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,” added Kukielski.
“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,” concluded Kukielski.
“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,” said Eugene Lei, Hudbay’s president and chief financial officer, and chair of the Copper World joint venture board.
“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,” added Lei.
“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,” said Taro Abe, Mitsubishi’s Critical Minerals Division COO, Mineral Resources Group.
“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,” added Abe.
COPPER WORLD DE-RISKED AND OPTIMIZED THROUGH FEASIBILITY AND PRE-FEASIBILITY STUDIES
The Copper World project includes four deposits discovered in 2021, together with the East deposit. Copper World is planned to be a traditional open pit shovel and truck operation with a conventional flotation concentrator producing copper concentrate and molybdenum concentrate. A new resource model was completed for the 2022 PEA, which contemplated a two-phased mine plan with phase I as a stand-alone operation requiring state and local permits only and phase II expanding onto federal lands requiring federal permits. Phase I contemplated a 60,000 tons per day sulfide concentrator and phase II assumed an expansion of the concentrator to 90,000 tons per day.
In September 2023, Hudbay released the 2023 PFS for Copper World reflecting the results of further technical work on phase I of the project. Phase I had a mine life of 20 years, reflecting a 60,000 tons per day sulfide concentrator that would produce copper concentrate as a final product. The 2023 PFS also contemplated the addition of a concentrate leach facility and a solvent extraction and electrowinning plant in year five that would allow the project to produce copper cathode.
Since 2023, Hudbay has focused on metallurgical testing and progressing the engineering of the initial operation to a feasibility study level, in addition to completing related pre-feasibility studies on the mill expansion and IPCC projects listed below, trade-off studies, and de-risking activities.
Hudbay has also received all major permits required to bring the mine plan into operation under the 60,000 tons per day concentrator scenario and secured Mitsubishi as a 30 percent joint venture partner.
COPPER WORLD GENERATES SIGNIFICANT SOCIAL AND ENVIRONMENTAL BENEFITS
Global copper market fundamentals are expected to be strong with a structural deficit emerging in the near to medium term. Global mine production is expected to struggle to keep pace with metal demand from electrification and the rapid expansion of datacentres. The U.S. is expected to remain a copper metal importer during this period, and domestic supply will be required to help meet growing U.S. metal demand related to increased manufacturing capacity, infrastructure development, bolstering the country’s energy independence and national security needs.
The Copper World project is expected to generate significant benefits for the community and local economy in Arizona through significant job creation, tax revenue, economic development, and the ability to produce “Arizona Copper Made for America”.
Over the anticipated 15-year life of the operation in the base case, the company expects to contribute more than $1.1 billion in total U.S. taxes, including approximately $200 million in taxes to the state of Arizona and $362 million in local property taxes. This increases to $3.7 billion in total U.S. taxes over the 37-year mine life in the extension case. Hudbay expects Copper World to create more than 1,000 construction jobs, 500 permanent operating roles, and up to 3,000 indirect employment opportunities in Arizona.
Significant engineering work has been advanced on the concentrate leach facility, including the recent completion of a PFS that confirmed the technical viability of the facility for Copper World and the ability to produce copper cathode. Using the extension case, the concentrate leach facility adds approximately $226 million to the after-tax net present value (8 percent), which increases to $377 million at time of sanctioning the construction of the facility, assuming a 10 percent cathode premium to the long-term copper price of $5.00 per pound.
Producing copper cathode is expected to reduce the logistics costs and greenhouse gas emissions associated with overseas shipping, and smelting and refining activities related to copper concentrate The company will continue to evaluate the concentrate leach facility considering future market conditions, such as premiums for copper metal in the U.S., potential government incentives and the unique strategic opportunity it presents as one of the few fully permitted domestic copper cathode producing facilities in the U.S. Copper World’s concentrate leach facility also has the potential to unlock synergies with Hudbay’s Cactus project in Arizona.
Hudbay is a copper-focused mining company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining-friendly jurisdictions of Canada, Peru, and the United States. Hudbay’s operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and, upon completion of the arrangement with Copper Mountain Mining Corp., the Copper Mountain mine in British Columbia (Canada). Copper is the primary metal produced by the company, which is complemented by meaningful gold production. Hudbay’s growth pipeline includes the Copper World project in Arizona, the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru), and several expansion and exploration opportunities near its existing operations.
Mitsubishi is a globally integrated trading and investment company that develops and operates businesses across multiple industries. The company has 115 offices in more than 90 countries with approximately 80,000 employees on consolidated basis across the globe and a diversified business portfolio with eight business groups that operate across virtually every industry: environmental energy, material solution, mineral resources, urban development and infrastructure, mobility, food industry, smart-life creation, and power solution. Mitsubishi has a significant presence in the U.S. with offices in New York, Washington D.C., Boston, Houston, Los Angeles, Seattle, and Silicon Valley.
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2026 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)