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Hudbay and Mitsubishi approve construction of Arizona copper mine

Hudbay and Mitsubishi approve construction of Arizona copper mine

Money Moves

Copper World project near Tucson gets $2.07 billion final investment decision

Today: Hudbay and Mitsubishi approve Copper World construction

Overview

Updated 1 hour ago

Hudbay Minerals and Mitsubishi Corporation approved construction of the Copper World mine in Arizona on Wednesday, committing $2.07 billion to build what they call the next major open-pit copper mine in the United States. First production is targeted for the second half of 2029.

The project, about 50 kilometers southeast of Tucson, is fully permitted for its 15-year base case on private land. It would roughly double Hudbay's annual copper output to about 250,000 tonnes, adding a new domestic source of a metal central to electrification and defense supply chains.

Why it matters

Copper World would add a major new U.S. copper source as domestic output stays flat and demand rises.

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Key Indicators

$2.07B
Initial capital
Total initial growth capital for Copper World construction, net of $230 million precious metals stream deposit.
102,000
Annual copper production (first 10 years)
Average annual copper production in the first decade, up 11% from the 2023 pre-feasibility study.
15
Base case mine life (years)
Base case operates on private land with state and local permits already in hand.
$1.65
Cash cost per pound (first 10 years)
Average cash cost positions Copper World among the lowest-cost open-pit copper mines in the U.S.
70%
Hudbay ownership stake
Hudbay owns 70% of Copper World; Mitsubishi owns the remaining 30%.

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People Involved

Organizations Involved

Timeline

2022 October 2026

8 events Latest: Today
Tap a bar to jump to that date
  1. Hudbay and Mitsubishi approve Copper World construction

    Today Decision

    Final investment decision commits $2.07 billion initial capital; first production targeted for 2029.

  2. Mitsubishi closes $600 million investment in Copper World

    Investment

    Mitsubishi completes 30% joint venture stake, contributing $420 million cash upfront.

  3. Pima County supervisors reaffirm opposition to Copper World

    Political

    County supervisors restate opposition to the project in an October 2025 resolution.

  4. Hudbay announces Mitsubishi will acquire 30% stake in Copper World

    Investment

    Mitsubishi agrees to invest $600 million for a 30% joint venture interest.

  5. Arizona issues air quality permit for Copper World

    Permit

    ADEQ approves air quality permit, completing state-level permitting for the base case.

  6. Arizona issues aquifer protection permit for Copper World

    Permit

    Arizona Department of Environmental Quality approves aquifer protection permit.

  7. Hudbay releases pre-feasibility study for Copper World

    Feasibility

    PFS outlines 92,000 tonnes annual copper production over the first 10 years.

  8. Hudbay releases preliminary economic assessment for Copper World

    Study

    Initial economic assessment outlines the project's potential on private and federal land.

Scenarios

1

Copper World reaches first production in 2029

Likely Resolves by End of 2029

Discussed by: Hudbay management, definitive feasibility study

The DFS targets first production in the second half of 2029. Construction begins immediately with $2.07 billion in initial capital. Hudbay's first capital contribution is deferred to 2028, with Mitsubishi's $600 million and Wheaton's $230 million deposit funding early work. The project's 15-year base case requires no federal permits.

2

Federal permitting for the 37-year extension case stalls

Possible Resolves by End of 2030

Discussed by: EconoTimes, Pima County officials

The base case runs 15 years on private land. The 37-year extension case would expand onto federal land in year 10, requiring federal permits. Pima County has opposed the project, and federal permitting for Arizona copper mines has historically been slow. A delay or denial would cap the project at its 15-year base case.

3

Legal challenge to air permit delays construction

Possible Resolves by End of 2027

Discussed by: EconoTimes

Pima County supervisors reaffirmed opposition in October 2025, and the air quality permit faces a legal challenge. A court ruling against the permit could delay construction or require additional environmental review. The project's construction timeline assumes the existing permits hold.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

1990s-present

Resolution Copper (1990s-present)

Rio Tinto's Resolution Copper project in Arizona has sought federal permits for decades. A 2021 court ruling blocked a land exchange needed to access one of North America's largest copper deposits. The project remains stalled.

Then

The 2021 ruling halted the land exchange and the project's timeline indefinitely.

Now

Resolution Copper became a symbol of the difficulty of permitting new mines on federal land in the U.S.

Why this matters now

Copper World's base case avoids federal land entirely, using private land with state and local permits. The 37-year extension case would require federal permits, facing the same challenges that have stalled Resolution Copper.

late 1800s-present

Morenci mine (late 1800s-present)

Freeport-McMoRan's Morenci mine in eastern Arizona has operated for over a century and is one of the largest copper mines in North America. It has expanded multiple times through open-pit mining.

Then

Morenci has been a major copper producer for over 100 years.

Now

It demonstrates the long history of copper mining in Arizona and the state's central role in U.S. copper supply.

Why this matters now

Copper World would join Morenci and other Arizona mines in supplying domestic copper, but it faces modern permitting and environmental scrutiny that earlier mines did not.

Sources

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