Hudbay Minerals Inc. closed a $600 million strategic investment with Mitsubishi Corporation, giving the Japanese conglomerate a 30% stake in the company’s Copper World project in Arizona. The deal was finalized on January 12 2026 and consists of an initial cash contribution of $420 million at closing, followed by a second tranche of $180 million payable within 18 months. Mitsubishi also committed to covering its pro‑rata share of any future equity capital required to build the mine.
The investment dramatically de‑risks Hudbay’s growth catalyst by reducing the company’s equity requirement to roughly $200 million and deferring its first cash contribution to 2028. The financing lifts the levered internal rate of return for the project to about 90%, up from the pre‑feasibility estimate of 19%. With Copper World expected to produce 85,000 tpa of copper over a 20‑year life, the partnership positions Hudbay to increase consolidated copper production by more than 50% once the mine becomes operational.
Copper World is fully permitted at the state level and is poised for a sanction decision in 2026. The partnership aligns with Mitsubishi’s strategy to boost its copper output to over 400,000 tpa by FY2030, while Hudbay gains a partner with deep mining expertise and a strong balance sheet. The deal also signals confidence in the U.S. critical‑minerals supply chain, as Hudbay will produce “Made in America” copper for domestic demand.
Hudbay President and CEO Peter Kukielski said the transaction “marks the beginning of a long‑term strategic partnership and an important growth milestone.” He added that the collaboration will “leverage our complementary strengths to deliver a world‑class project that will increase Hudbay’s consolidated copper production by more than 50% and create significant value for all stakeholders.” Mitsubishi’s Taro Abe noted that the investment “is of significant strategic importance for Mitsubishi’s growth strategy in copper and demonstrates our commitment to high‑return projects.”
While the deal offers substantial upside, management cautions that execution and permitting risk remain the key swing factors. Potential cost inflation, construction delays, and the appeal against the air‑quality permit could impact the project timeline and economics. Hudbay’s plan to manage water resources through recharge and recycling, and its focus on cost discipline, aim to mitigate these headwinds.
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