Hudbay Minerals Inc. and Mitsubishi Corp.’s Copper World project in Arizona – owned 70% and 30%, respectively – is moving forward with construction and development following the results of a definitive feasibility study and related pre-feasibility studies (DFS).
With first production projected in the second half of 2029, Copper World will be the first of the next generation of long-life, low-cost copper mines in the Americas. Copper World’s DFS outlines annual copper production of 102,000 metric tons (mt) over the first 10 years, an 11% increase from 92,000 mt in Hudbay’s 2023 pre-feasibility study. Hudbay’s consolidated annual copper production is expected to increase to approximately 250,000 mt, while Mitsubishi aims to increase its annual attributable copper production from approximately 330,000 mt today to more than 400,000 mt from FY2030 onward.
Along with the final investment decision, Mitsubishi said it now expects to make an additional equity contribution of $423 million toward the initial development. This is in addition to the $420 million investment for the company’s 30% ownership interest and the $180 million contribution toward future development costs. Including the additional equity contribution, Mitsubishi’s cumulative investment in the project is expected to total $1.02 billion.
“The final investment decision for Copper World marks the beginning of a new phase for the joint venture,” said Taro Abe, Mitsubishi’s Critical Minerals Division COO, Mineral Resources Group. “We are pleased to move forward with the project and advance it toward first production in the second half of 2029. Copper World is important to our growth strategy and the U.S. copper landscape, with the potential to deliver lasting benefits to communities and stakeholders. As a committed long-term partner, we continue to leverage our broad business footprint in North America and extensive experience in mining project development and marketing to maximize the value of the Copper World joint venture.”
In September 2023, Hudbay released the 2023 PFS for Copper World reflecting the results of further technical work on Phase I of the project. Since 2023, Hudbay has focused on metallurgical testing and progressing the engineering of the initial operation to a feasibility study level, in addition to completing related pre-feasibility studies on the mill expansion and In-Pit Crushing and Conveying (IPCC) projects, trade-off studies and de-risking activities. Hudbay has also received all major permits required to bring the mine plan into operation under the 60,000 tons per day (t/d) concentrator scenario.
Hudbay’s base case for the Copper World project contemplates a 15-year mine life utilizing mineral reserves, requires only state and local permits, and contemplates a comparable total mill feed tonnage to the 2023 PFS. The base case further optimizes the 2023 PFS mine plan with an in-pit crushing and conveying system in year four and an expansion of the concentrator from 60,000 t/d to 90,000 t/d in year five. Concentrator expansion enables a 43% increase in average annual copper production to 120,000 mt in years six to 10, compared to 84,000 mt over the first five years.
The extension case for the Copper World project contemplates a 37-year mine life, utilizing only measured and indicated mineral resources and expanding mining activities onto federal lands in year 10, subject to obtaining federal permits, maintaining annual copper production of 117,000 mt from years 11 to 20. The extension case incorporates and further optimizes the second phase from Hudbay’s 2022 preliminary economic assessment with less additional growth capital.
“The approval of the development of Copper World represents a significant milestone for Hudbay, our partners at Mitsubishi, our stakeholders and the copper landscape in the USA,” said Peter Kukielski, Hudbay’s CEO. “Copper World is one of the most attractive copper growth projects in the Americas, offering some of the highest copper grades, lowest cash costs and favorable capital intensity. This project adds more than 100,000 mt of annual copper production over the first 10 years, and the DFS demonstrates the full potential of the project in the extension case, delivering higher annual copper production for more than 30 years. It also adds a fourth operating asset to our diversified operating platform and further enhances our tier one operating jurisdictions profile with the addition of the USA.”
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