Copper World gets $2.07 billion construction approval, with first production targeted for 2029

Hudbay Minerals and Mitsubishi approved construction of the Copper World project in Arizona, about 50 kilometres southeast of Tucson, on October 21, 2026. Hudbay owns 70% and Mitsubishi 30%, and the companies are targeting first production in the second half of 2029.

Initial growth capital is $2.07 billion, net of $127 million in equipment financing, or $1.84 billion net of the precious metals stream deposit. Funding starts with Mitsubishi’s $600 million joint venture equity investment, Wheaton Precious Metals’ $230 million stream deposit and about $650 million of anticipated project-level debt. Hudbay expects its own contribution of about $500 million will not be required until 2028.

The definitive feasibility study (DFS) base case describes a 15-year mine averaging 102,000 tonnes of copper a year over the first 10 years, at average cash costs of $1.65 a pound. At a long-term copper price of $5.00 a pound, the DFS reports an after-tax net present value (8% discount rate) of $1.2 billion and a 17% unlevered internal rate of return, or 32% levered for Hudbay. It gives average annual EBITDA of $661 million over the first 10 years and $566 million as the base case annual average. In the 37-year extension case, mining moves onto federal land in year 10, subject to obtaining federal permits.