Name of the Project
Copper World Complex.

Location
Arizona, in the US.

Project Owner/s
Base metals miner Hudbay Minerals struck a $600-million deal with Mitsubishi on August 13, 2025, consequently giving the Japanese conglomerate a 30% stake in the project, securing a long-term partner and significantly reducing Hudbay’s upfront funding needs.

The agreement involves Mitsubishi’s paying $420-million at closing and an additional $180-million within 18 months. The company will also fund its pro-rata share of future capital costs, deferring Hudbay’s first capital contribution until at least 2028 and trimming its expected outlay to about $200-million, based on prefeasibility study (PFS) estimates.

The Mitsubishi transaction is expected to close in late 2025 or early 2026, pending regulatory approvals.

Project Description
The results of a September 2023 enhanced PFS for Phase 1 of the project has significantly enhanced the economics and derisks the project through higher levels of engineering, a simplified project design, lower upfront capital expenditure and a longer mine life.

Copper World is planned to be a traditional openpit truck-and-shovel operation, with a conventional flotation concentrator producing copper concentrate and molybdenum concentrate, with an expansion of the processing facility to include a copper concentrate leach facility in Year 5, producing copper cathode and silver/gold doré.

The overall mining operation is expected to comprise four openpits in Phase 1.

The mine plan for Phase 1 is optimised solely on the flotation of copper sulphides and oxides.

Phase 1 envisages a standalone operation with a mine life of 20 years, four years longer than the Phase 1 mine life presented in the preliminary economic assessment (PEA) that was published in June 2022. This is owing to an increase in the capacity for tailings and waste deposition, as a result of optimising the site layout. 

The first phase of the project proposes average copper production of 85 000 t/y over the life-of-mine. 

A variable cutoff-grade strategy allows for higher mill head grades in the first ten years and increases production to about 92 000 t/y of copper.

Phase 2 is expected to involve an expansion onto federal lands, with an extended mine life and enhanced project economics. Phase 2 would be subject to the federal permitting process and has not been included in the PFS results. Phase 1 is a standalone operation requiring only state and local permits.

Potential Job Creation
Hudbay expects construction to create more than 1 000 jobs a year over three years, with letters of commitment from seven US labour unions. Once operational, the mine will provide 400 direct jobs and about 3 000 indirect jobs in Arizona while contributing more than $850-million in US taxes.

Net Present Value/Internal Rate of Return
Phase 1 has an estimated after-tax net present value, at an 8% discount rate, of $1.1-billion and an internal rate of return of 19.2%, with a payback of 5.9 years at $3.75/lb copper.

Capital Expenditure
Total initial capital costs are estimated at $1.3-billion for Phase 1, including all costs associated with the construction of the concentrator and associated infrastructure. 

Planned Start/End Date
Not stated.

Latest Developments
Alongside the Mitsubishi deal on August 13, Hudbay has reached a nonbinding agreement with Wheaton Precious Metals to amend an existing streaming arrangement covering gold and silver output from Copper World. The revision includes a contingent payment of up to $70-million linked to potential mill expansion, and changes ongoing payments from fixed pricing to 15% of spot prices, offering more exposure to rising precious metals markets.

Hudbay aims to complete a definitive feasibility study by mid-2026, moving toward a final sanction decision later that year.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Hudbay Minerals, tel +1 416 362 8181 or email info@hudbayminerals.com.