Mitsubishi Corporation Approves Development of the Copper World Project in the U.S.
Mitsubishi Corporation (“MC”) has approved the construction and development of the Copper World project in Arizona, the United States (the “Project”), which is being jointly advanced with Hudbay Minerals Inc. (“Hudbay”). In conjunction with the final investment decision, MC now expects to make an additional equity contribution of $423 million* (approximately ¥65.6 billion) toward the initial development of the Project. This is in addition to the $420 million (approximately ¥61 billion) investment for MC’s 30% ownership interest and the $180 million (approximately ¥26 billion) contribution toward future development costs approved when MC acquired its interest in the Project in August 2025. Including the additional equity contribution, MC’s cumulative investment in the Project is expected to total $1.02 billion (approximately ¥152.6 billion**).
The U.S. is the world's second-largest consumer of copper, and steady demand growth is expected to continue, driven by population growth, increased power demand from generative AI and data center expansion, and the shift toward electrification. In addition, the U.S. government has identified strengthening domestic supply chains for critical minerals, including copper, as a strategic priority. Against this backdrop, the Project was included in the “Joint Fact Sheet for Japan-U.S. Critical Minerals Project Cooperation,” released by the Governments of Japan and the United States in March 2026, for its potential to strengthen U.S., Japanese, and global critical mineral supply chains.
The Project has secured all major permits required for development and initial operation. Production is expected to commence in the second half of 2029, with life-of-mine average annual copper production of approximately 100,000 tonnes. The Project also offers additional opportunities, including the potential development of a concentrate leach facility that would enable the production of “Made in America” copper cathodes for the U.S. critical minerals supply chain. In addition, the Project retains significant extension potential through the future development of adjacent federal lands, which could further extend the mine life by approximately 25 years. These opportunities are expected to further strengthen the Project’s long-term value and growth profile.
Copper is an essential resource for advancing electrification and the transition to a low-carbon society, with demand expected to grow over the medium to long term. At the same time, declining ore grades and other factors are making the development of new copper mines increasingly challenging, highlighting the importance of securing a stable supply of this critical resource. Leveraging its expertise in copper mining investments and global trading activities, MC aims to increase its annual attributable copper production from approximately 330,000 tonnes today to more than 400,000 tonnes from FY2030 onward. The final investment decision for the Project represents an important step toward achieving this objective and contributing to meet growing global demand for copper.
*MC’sexpected additional equity contribution is calculated as 30% of the Project’sremaining development capital requirement of $1.41 billion. This amount isderived from the $2.07 billion initial growth capital, less: (i) the $230million precious metals stream deposit, (ii) $52 million of Arizona municipalbonds, (iii) $198 million of the remaining equity interest consideration (netof $222million study costs and other expenditures), and (iv) MC’s $180 milliondevelopment funding commitment made upon acquiring its 30% interest in theProject. The actual contribution amount may be adjusted depending on the levelof additional external financing secured in the future.
**Regarding the exchange rates used for conversion, a rate of ¥145 per U.S. dollar has been applied to the ¥87 billion in total contributions announced in August 2025, while a rate of ¥155 per U.S. dollar has been applied to the additional ¥65.6 billion announced today.
Copper World Project Overview | |
|---|---|
| Location | Tucson, Arizona, U.S.A. |
| Ownership | Hudbay Minerals Inc. 70%; MC 30% |
| Mining Method / Products | Open-pitmining / Copper concentrate (with gold and silver by-products), molybdenumconcentrate |
| Mineral Reserves / Mineral Resorces*** | Approximately 2 Mt Cu eq. / Approximately 5 Mt Cu eq. |
| Annual Copper Production (Life-of-mine average) | Approximately 100,000 tonnes |
| First Production | Targeted for second half of 2029 |
| Initial Growth Capital | $2.07 billion |
| MC's Total Expected Investment | $1.02 billion (including $420 million as consideration for the equity interest) |
| Operating Cash Cost (Life-of-mine average) | $1.70/lb |
| Life of Mine | 15years (potential to extend the mine life by approximately 25 years, subject tofederal permitting) |
***Mineral Reserves: Economically mineable portion of Mineral Resources / Mineral Resources: The total quantity of minerals identified through geological surveys
Hudbay Overview | |
|---|---|
| Company Name | Hudbay Minerals Inc. |
| Headquarters | Toronto, Ontario, Canada |
| Established | 1927 |
| CEO | Peter Kukielski |
| Listings | Toronto Stock Exchange, New York Stock Exchange |
| Business Activities | Development and operation of copper and gold mines in Canada, Peru, and theUnited States |
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