Hudbay Minerals Inc. and Mitsubishi Corporation have officially approved the construction of the Copper World project in Arizona, marking a significant step toward developing the next major copper mine in the U.S. The project, located about 50 kilometers southeast of Tucson, is expected to begin production in the second half of 2029. Hudbay, which owns 70% of the project, and Mitsubishi, with a 30% stake, have backed the initiative following a robust definitive feasibility study (DFS).
The Copper World project is projected to produce 102,000 tonnes of copper annually over the first 10 years, an 11% increase from the 2023 pre-feasibility study. The average annual cash costs are estimated at $1.65 per pound, positioning it as one of the lowest-cost open-pit copper mines in the U.S. Hudbay's consolidated annual copper production is anticipated to double to approximately 250,000 tonnes with the project's completion.
The base case for the project outlines a 15-year mine life with an after-tax net present value (8%) of $1.2 billion and an internal rate of return of 17% at a long-term copper price of $5.00 per pound. These figures increase to $2.3 billion and 22%, respectively, at a copper price of $6.00 per pound. The project also includes an extension case that could extend the mine life to 37 years, with annual copper production of 117,000 tonnes from years 11 to 20.
The initial growth capital for the project is estimated at $2.07 billion, with Mitsubishi contributing $600 million and Wheaton Precious Metals Corp. providing a $230 million deposit. The project is expected to deliver significant benefits to stakeholders, including the creation of over 1,000 construction jobs, 500 permanent jobs, and up to 3,000 indirect jobs. The project is also expected to generate $1.1 billion to $3.7 billion in total U.S. taxes over its lifespan.