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Hudbay and Mitsubishi approve construction of Arizona copper mine

Hudbay and Mitsubishi approve construction of Arizona copper mine

Money Moves

Copper World clears a $2.07 billion final investment decision as Pima County reviews water questions

October 21st, 2026: Hudbay and Mitsubishi approve Copper World construction

Overview

Updated Oct 25

Hudbay Minerals and Mitsubishi Corporation approved construction of the Copper World copper mine southeast of Tucson on Oct. 21, committing $2.07 billion in initial capital. First production is targeted for the second half of 2029, and Hudbay says it plans to start building by the end of 2026.

The feasibility study behind the decision drops earlier plans to refine copper into cathodes on site, now billed as a future option after that plant's cost estimate rose from $367 million to $703 million. Starting in year five, one-third of tailings will be dry-stacked to cut water use. Pima County's administrator told supervisors the same day that county staff will review the study and meet state water regulators about a pumping permit that expires in January 2028.

Why it matters

Copper World would add a major new U.S. copper source as domestic output stays flat and demand rises.

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Key Indicators

$2.07B
Initial capital
Total initial growth capital for Copper World construction; $1.84 billion net of Wheaton's $230 million stream deposit.
102,000
Annual copper production (first 10 years)
Average annual copper production in the first decade, up 11% from the 2023 pre-feasibility study.
15
Base case mine life (years)
Base case operates on private land with state and local permits already in hand.
$1.65
Cash cost per pound (first 10 years)
Average cash cost positions Copper World among the lowest-cost open-pit copper mines in the U.S.
70%
Hudbay ownership stake
Hudbay owns 70% of Copper World; Mitsubishi owns the remaining 30%.
$1.02B
Mitsubishi's total investment
Includes the 30% interest, previously agreed development funding and a $423 million additional equity contribution announced Oct. 21.
1,000+
Construction jobs
Construction positions Hudbay says the project will support, alongside 500 permanent roles.
37 years
Extension case mine life
Uses measured and indicated resources and expands onto federal land in year 10, which would require federal permits.

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People Involved

PK
Peter Kukielski
President and Chief Executive Officer, Hudbay Minerals
Leading Hudbay as Copper World moves into construction

Organizations Involved

Hudbay Minerals Inc.
Hudbay Minerals Inc.
Mining company
70% owner and operator of Copper World; construction approved

Canadian copper and zinc producer listed on the Toronto and New York stock exchanges.
Mitsubishi Corporation
Mitsubishi Corporation
Japanese trading house
30% owner of Copper World; total planned investment of about $1.02 billion

One of Japan's largest trading companies with a global mining portfolio.
CW
Copper World LLC
Joint venture entity
Holds state and local permits for the 15-year base case; federal permits would be needed for the extension case

Joint venture between Hudbay (70%) and Mitsubishi (30%) that owns the Copper World project.
WP
Wheaton Precious Metals Corp.
Precious metals streaming company
Provided $230 million deposit for precious metals stream

Vancouver-based streaming company that provides upfront payments in exchange for future precious metals production.

Timeline

2022 October 2026

12 events Latest: October 21st, 2026 · 3 weeks ago Showing 8 of 12
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  1. Hudbay and Mitsubishi approve Copper World construction

    Latest Decision

    Final investment decision commits $2.07 billion initial capital; first production targeted for 2029.

  2. Copper World study drops on-site copper cathode plant

    Study

    The definitive feasibility study prices a plant to turn concentrate into 99.99% cathode sheets at $703 million, up from $367 million in the 2023 draft, and calls on-site refining a future option instead.

  3. Pima County administrator flags water and permit questions

    Political

    County Administrator Jan Lesher told supervisors the study shows increased production, dry stack tailings and changed facility layouts. County staff will review it and meet state water regulators about Hudbay's pumping permit, which expires in January 2028.

  4. Tucson City Council adopts resolution opposing Copper World

    Political

    The council voted unanimously for a resolution opposing the mine and open-pit mining in the Santa Rita Mountains.

  5. Mitsubishi closes $600 million investment in Copper World

    Investment

    Mitsubishi completes 30% joint venture stake, contributing $420 million cash upfront.

  6. Pima County supervisors vote 3-1 to register opposition

    Political

    The board directed the county administrator to tell regulators and Hudbay of its continuing opposition to the project.

  7. Pima County supervisors reaffirm opposition to Copper World

    Political

    County supervisors restate opposition to the project in an October 2025 resolution.

  8. Hudbay announces Mitsubishi will acquire 30% stake in Copper World

    Investment

    Mitsubishi agrees to invest $600 million for a 30% joint venture interest.

  9. Arizona issues air quality permit for Copper World

    Permit

    ADEQ approves air quality permit, completing state-level permitting for the base case.

  10. Arizona issues aquifer protection permit for Copper World

    Permit

    Arizona Department of Environmental Quality approves aquifer protection permit.

  11. Hudbay releases pre-feasibility study for Copper World

    Feasibility

    PFS outlines 92,000 tonnes annual copper production over the first 10 years.

  12. Hudbay releases preliminary economic assessment for Copper World

    Study

    Initial economic assessment outlines the project's potential on private and federal land.

Scenarios

1

Copper World reaches first production in 2029

Likely Resolves by End of 2029

Discussed by: Hudbay management, definitive feasibility study

The DFS targets first production in the second half of 2029. Construction begins immediately with $2.07 billion in initial capital. Hudbay's first capital contribution is deferred to 2028, with Mitsubishi's $600 million and Wheaton's $230 million deposit funding early work. The project's 15-year base case requires no federal permits.

2

Federal permitting for the 37-year extension case stalls

Possible Resolves by End of 2030

Discussed by: EconoTimes, Pima County officials

The base case runs 15 years on private land. The 37-year extension case would expand onto federal land in year 10, requiring federal permits. Pima County has opposed the project, and federal permitting for Arizona copper mines has historically been slow. A delay or denial would cap the project at its 15-year base case.

3

Legal challenge to air permit delays construction

Possible Resolves by End of 2027

Discussed by: EconoTimes

Pima County supervisors reaffirmed opposition in October 2025, and the air quality permit faces a legal challenge. A court ruling against the permit could delay construction or require additional environmental review. The project's construction timeline assumes the existing permits hold.

4

Groundwater permit expiry forces a new water review

Possible Resolves by Jan 17, 2028

Discussed by: Pima County officials, Arizona Department of Environmental Quality

A Pima County memorandum says metals have been detected in water near Davidson Canyon and that the project's groundwater withdrawal permit expires Jan. 17, 2028. The county wants to meet ADEQ about how its monitoring data should be used. Construction can start on existing permits, but a lapse or stricter renewal terms would affect water supply for operations.

5

Hudbay builds a copper cathode plant at Copper World

Unlikely Resolves by End of 2030

Discussed by: Hudbay's 2026 definitive feasibility study

The study puts a $703 million price on an on-site plant that would turn concentrate into 99.99% pure cathode sheets, up from $367 million in the 2023 draft, and labels it a future option rather than part of the mine plan. Building it would take a separate board approval and funding.

6

Pima County's water objections reach the 2028 permit renewal

Possible Resolves by Jan 31, 2028

Discussed by: Pima County Administrator Jan Lesher, Arizona Department of Environmental Quality

Lesher said county staff will review the feasibility study and meet state water regulators about Hudbay's water-pumping permit, which expires in January 2028. The county has cited declining aquifer levels and subsidence. Construction can proceed on existing permits, but stricter renewal terms would affect the mine's water supply.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

1990s-present

Resolution Copper (1990s-present)

Rio Tinto's Resolution Copper project in Arizona has sought federal permits for decades. A 2021 court ruling blocked a land exchange needed to access one of North America's largest copper deposits. The project remains stalled.

Then

The 2021 ruling halted the land exchange and the project's timeline indefinitely.

Now

Resolution Copper became a symbol of the difficulty of permitting new mines on federal land in the U.S.

Why this matters now

Copper World's base case avoids federal land entirely, using private land with state and local permits. The 37-year extension case would require federal permits, facing the same challenges that have stalled Resolution Copper.

late 1800s-present

Morenci mine (late 1800s-present)

Freeport-McMoRan's Morenci mine in eastern Arizona has operated for over a century and is one of the largest copper mines in North America. It has expanded multiple times through open-pit mining.

Then

Morenci has been a major copper producer for over 100 years.

Now

It demonstrates the long history of copper mining in Arizona and the state's central role in U.S. copper supply.

Why this matters now

Copper World would join Morenci and other Arizona mines in supplying domestic copper, but it faces modern permitting and environmental scrutiny that earlier mines did not.

Sources

(13)
+7
Hudbay Minerals Inc. Construction Review Mitsubishi Corporation EconoTimes StockTitan MarketScreener Mining Weekly KVOA Arizona Globe MarketWatch Engineering News-Record Arizona Daily Star Hudbay Minerals Inc.