Mitsubishi Corporation (TYO:8058) has reached an agreement to acquire a 30% interest in the Copper World copper mine project in the US from Hudbay Minerals (NYSE:HBM) for US$600 million ($916.34 million).
The deal consists of a US$420 million equity interest and US$180 million as matching contribution, which will be allocated toward development costs.
Both companies will jointly conduct a Definitive Feasibility Study (DFS) for the Copper World project. The company is aiming for a final investment decision around 2026.
Mitsubishi notes the US is the world’s second-largest consumer of copper, and steady demand growth is expected to continue.
This is expected to be driven by population growth, increased power demand from generative AI and data center expansion, and the shift toward electrification, as reported by this news service.
Arizona, where the project is located, accounts for some 70% of domestic copper mine production and is a leading mining region with strong access to key infrastructure.
The project has already secured the permits required for development and commencement of operations, and is expected to start around 2029.
Copper World’s anticipated output of about 100,000 tonnes of copper per year at its peak. There is also potential for future mine expansion by securing permits to access adjacent mining concessions.
Hudbay has cultivated extensive experience in mine development and operations since its establishment in 1927. The company currently operates three copper and gold mines and holds two other development projects in addition to the Project.
Mitsubishi has long been engaged in a wide range of businesses in North America, primarily in the US, and has invested in various mineral resources through partnerships with mining companies globally.
Regarding copper, the company aims to expand its annual equity production to over 400,000 tonnes from FY2030 onwards, leveraging its expertise in global copper mining investments and trading activities.
The company says this investment is part of Mitsubishi’s efforts to achieve that target.
Write to Adam Orlando at Mining.com.au
Images: Mitsubishi
