Hudbay and Mitsubishi approve Copper World build, targeting 2029 output

Hudbay Minerals and Mitsubishi have approved a final investment decision to build the Copper World copper project in Arizona, with production scheduled to begin in the second half of 2029, Resource World reported. The decision follows the release of a definitive feasibility study and related pre-feasibility studies for the development, which lies 50 kilometres southeast of Tucson.

Hudbay holds a 70% interest in Copper World, while Mitsubishi owns the remaining 30% through a joint venture agreement reached in January 2026. According to Resource World’s account of the study, the project is expected to produce an average of 102,000 tonnes of copper annually during its first 10 years. That is 11% above the 92,000 tonnes forecast in Hudbay’s 2023 pre-feasibility study. Estimated cash costs for the same period are US$1.65 per pound.

The base-case development uses mineral reserves to support a 15-year operating life and requires state and local permits only. Proven and probable reserves total 390 million tonnes grading 0.47% copper. Measured and indicated resources, including those reserves, stand at 1.2 billion tonnes at 0.40% copper. The report says that resource base offers potential to extend operations to a total of 37 years, rather than the reserve-based life used in the base case.

The financing plan combines Mitsubishi’s initial US$600 million joint venture equity investment with a US$230 million deposit from Wheaton Precious Metals under an existing precious metals streaming arrangement. It also anticipates approximately US$650 million of project-level debt, representing leverage below 30%. The partners’ remaining proportional equity contributions are deferred until 2028.

The operating plan includes an in-pit crushing and conveying system in year four, followed by a concentrator expansion in year five. Average annual copper output is forecast to rise from 84,000 tonnes during the first five years to 120,000 tonnes in years six to 10, a 43% increase. Hudbay expects Copper World, alongside other brownfield growth projects under way, to help lift its consolidated annual copper production to approximately 250,000 tonnes, around twice current levels.