Hudbay Minerals Strikes Deal to Sell Stake in Arizona Copper Project

SEATTLE (Scrap Monster): Hudbay Minerals, Inc., a Canadian company, said that it has signed an agreement with Japanese company Mitsubhishi to sell its 30% stake in the Copper World project in Arizona. Depending on regulatory approvals, the $600 million deal is anticipated to completion in late 2025 or early 2026.

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According to the terms of the deal, Mitsubhishi will pay $180 million within 18 months of the close and $420 million at closing. Furthermore, it will finance its pro rata portion of upcoming capital expenditures, postponing Hudbay's initial capital commitment until at least 2028.

Next year, a thorough feasibility study and a formal decision to proceed with the project are anticipated.

The construction phase is expected to create more than 1,000 jobs over a three-year period. Once operational, the mine is predicted to create 400 direct jobs and about 3 000 indirect jobs in Arizona. In addition, it will contribute more than $850-million in US taxes. The initial phase of Copper World is expected to produce approximately 85,000 tonnes per year of copper over 20 years.

Mitsubhishi has increased its footprint in one of the biggest markets for copper use by investing in the Copper World.