Hudbay Minerals and Mitsubishi (30% owner) have formally approved construction of the Copper World project in Arizona (Hudbay owns 70%), with first production targeted for the second half of 2029. The definitive feasibility study projects annual copper output of 102,000 tonnes over the first 10 years, an 11% increase from the 2023 study, at average cash costs of $1.65 per pound. The 15-year base case yields an after-tax NPV (8%) of $1.2 billion and an IRR of 17% at a long-term copper price of $5.00 per pound. Initial growth capital is about $2.07 billion, funded by Mitsubishi's $600 million equity, Wheaton's $230 million precious metals stream deposit and roughly $650 million in project debt.
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- Hudbay and Mitsubishi Approve Copper World Project Construction ; Advancing Next Major U . S . Copper Mine Towards First Production in 2029
Hudbay and Mitsubishi, which holds 30% of the project, have approved the final investment decision to build Copper World, a 70%-owned open-pit copper mine in Arizona, with first production targeted for the second half of 2029. The feasibility study projects annual output of 102,000 tonnes of copper over the first 10 years, 11% above the 2023 pre-feasibility study, with average cash costs of $1.65 per pound. In the base case, after-tax NPV (8%) is $1.2 billion with a 17% IRR at $5.00 per pound copper, rising to $2.3 billion and 22% at $6.00 per pound. Initial growth capital of $2.07 billion will be funded by Mitsubishi's $600 million equity, Wheaton's $230 million stream deposit and about $650 million of project debt, with leverage below 30% and remaining equity deferred to 2028. Hudbay's consolidated annual copper output is expected to rise to about 250,000 tonnes, roughly doubling current levels.
- Hudbay Minerals and Mitsubishi Approve Copper World Project Construction ; Advancing Next Major U . S . Copper Mine Towards First Production in 2029
- Press Release
Hudbay Minerals announced the results of the definitive feasibility study for Copper World, its 70%-owned project in Arizona, in which Mitsubishi holds 30%. The partners have approved a final investment decision to build the mine, with first production targeted for the second half of 2029. The project is expected to add more than 100,000 tonnes of annual copper production over its first 10 years, and the Extension Case would deliver higher output for more than 30 years. Hudbay will fund only one-quarter of the project capital cost, with its first capital contribution deferred to 2028. CEO Peter Kukielski said the project would double Hudbay's copper production.
- Hudbay and Mitsubishi Approve Copper World Project Construction ; Advancing Next Major U . S . Copper Mine Towards First Production in 2029
Hudbay and Mitsubishi have formally approved the final investment decision to build Copper World in Arizona, with first production targeted for the second half of 2029. Hudbay owns 70% and Mitsubishi 30% under a joint venture agreed in January 2026. The definitive feasibility study projects annual copper output of 102,000 tonnes over the first 10 years, at average cash costs of $1.65 per pound. In the base case, after-tax NPV (8%) is $1.2 billion with a 17% IRR at a $5.00 per pound copper price. Initial growth capital of $2.07 billion will be funded by Mitsubishi's $600 million equity, Wheaton's $230 million deposit and roughly $650 million in project debt.
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About 1,020 workers at BHP's Escondida, the world's largest copper mine, plan to strike after government-led mediation failed, following a walkout at Centinela. Chile's August copper output fell 12.8% to 369,500 tons, its lowest monthly level since February 2011, and a landslide at Codelco's El Teniente killed two contractors. S&P Global projects copper demand will rise from 28 million tons in 2025 to 42 million tons by 2040, while supply could fall 10 million tons short. Peru is targeting at least $33 billion in mining investment over five years, while Argentina's Vicuña project, with a $7.1 billion first phase, aims for a final investment decision by year-end. Chile's leached copper output of about 1.1 million tons could be exposed to a possible Chinese ban on sulphuric acid exports.
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The article argues that copper demand will outstrip supply, with the gap widening after 2030 according to an S&P Global report, and that supply could start declining from around 2035 due to falling ore grades, rising energy and labor costs, mining complexity and permitting difficulties. Chile, which accounts for almost a quarter of global copper production, is seeing deteriorating ore grades. Freeport-McMoRan's management believes its leaching initiative could ultimately recover 800 million pounds of copper a year from existing stockpiles, compared with its 2028 sales expectation of 4.1 billion pounds. More than 60% of incremental demand from 2024 to 2040 is expected to come from AI, data centers and the energy transition, which may prove relatively inelastic. The author remains more bullish than bearish on copper over the long term, while acknowledging that permitting and declining grades are real problems.
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