Hudbay, Mitsubishi Approve Construction of Big Copper Project in Arizona

By Robb M. Stewart

Hudbay Minerals and partner Mitsubishi have formally approved construction of what promises to be the next major copper mine in the U.S., with production set to begin in the back half of 2029.

The Canadian mining company said the decision to push ahead was made after it received the definitive feasibility study for the Copper World project in Arizona, which projects annual copper production of 102,000 metric tons over the first 10 years of mining. That target marks an 11% increase over the 92,000 tons proposed in Hudbay's 2023 prefeasibility study.

The development is expected to boost Hudbay's copper output each year to about 250,000 tons, double current production levels from a portfolio of operations in Canada and Peru.

Development of Copper World comes as Washington and governments around the world look to secure supplies of critical minerals needed in defense, communications, energy and other industries.

Hudbay's 70%-owned Copper World is located about 31 miles southeast of Tucson. Japanese trading house Mitsubishi secured a 30% stake in the project as part of a joint-venture agreement signed with Hudbay in January.

The companies forecast Copper World will be one of the lowest capital-intensity copper projects, with initial capital pegged at $2.07 billion. The project includes four deposits discovered in 2021, together with an East pit deposit. It is planned to be a traditional open-pit shovel and truck operation with a conventional flotation concentrator producing copper concentrate and molybdenum concentrate.

Mitsubishi has already committed $600 million as part of its initial joint-venture equity investment, and funding also includes a $230 million deposit from Wheaton Precious Metals for precious-metals supplies. Hudbay said its contributions are expected to be about $500 million, representing less than 25% of the initial growth capital, with capital not required until 2028.

Hudbay says Copper World is one of the highest-grade open-pit copper projects in the Americas, with proven and probable mineral reserves of 390 million tons. Measured and indicated resources of 1.2 billion tons have the potential to extend the mine life for decades, the company said.

The base case for Copper World project plans for an operation with a 15-year life, with net present value of $1.2 billion and internal rate of return of 17% at a long-term copper price of $5 a pound. That increases to $2.3 billion and 22% at a copper price of $6. The study suggests a possible extension case for the project that contemplates a 37-year mine life.

Write to Robb M. Stewart at robb.stewart@wsj.com

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October 21, 2026 07:53 ET (11:53 GMT)