Hudbay Minerals (TSX:HBM) has closed a US$600 million ($893.38 million) strategic investment from Mitsubishi Corporation (TYO:8058) for a 30% joint venture interest in the Copper World Project in Arizona.
On closing, Mitsubishi contributed US$420 million of cash to Copper World, owner of the Copper World Project, and will contribute an additional US$180 million in cash within 18 months.
As part of the deal, Mitsubishi will also fund its pro-rata 30% shares of future equity capital contributions required to construct Copper World.
Feasibility activities for Copper World are well underway with expected completion of the Definitive Feasibility Study in mid-2026.
Hudbay has continued to execute detailed engineering work and other de-risking activities, in preparation for a Copper World sanction decision expected in 2026.
CEO Peter Kukielski says closing the transaction with Mitsubishi marks the start of a long-term strategic partnership.
“This strategic partnership will leverage our organisations’ complementary strengths to deliver this world-class project that will increase Hudbay’s consolidated copper production by more than 50%,” Kukielski says.
Mitsubishi is one of the largest Japanese trading houses with a global mining presence and a US-based business.
Hudbay Minerals says this partnership represents the beginning of a long-term strategic partnership, and both companies are identifying other opportunities for collaboration to advance their copper growth strategies.
The Copper World Project has a 1.2 billion measured and indicated resource, as well as a 275 million inferred resource. The project has an expected 20-year mine life during phase one with an expected annual production of 85,000 tonnes of copper.
Write to Aaliyah Rogan at Mining.com.au
Images: Hudbay Minerals
