Mitsubishi Corp to acquire stake in US Copper Mine Project

Mitsubishi Corporation (MC) has announced an agreement to acquire a 30% interest in the Copper World copper mine project (the “Project”) owned by Hudbay Minerals Inc. (“Hudbay”). The transaction is worth USD 600 million (around JPY 87 billion). It includes USD 420 million (about JPY 61 billion) for the equity interest. Additionally, USD 180 million (nearly JPY 26 billion) will go toward development costs as a matching contribution. MC and Hudbay will jointly conduct a definitive feasibility study for the Project.

The United States is the second-largest copper consumer in the world. Demand is set to rise. This growth comes from more people, greater energy needs from generative AI, data centers expanding, and a shift toward electrification. The Project is in Arizona, which produces about 70% of U.S. copper. This location benefits from strong mining infrastructure. Development and operations permits are secured. Production is set to start around 2029. At its peak, the mine is expected to produce around 100,000 tonnes of copper each year. There’s also potential for more growth if we get extra permits for nearby concessions.

Hudbay, established in 1927, has extensive expertise in mine development and operations. The company runs three copper and gold mines. It also manages two development projects along with Copper World. MC has a long history in North America. It has also invested in mineral resources worldwide by partnering with top mining companies. MC plans to boost its yearly copper production to over 400,000 tonnes by FY2030. They will build on their experience in copper mining and trading. This acquisition marks a significant step toward that target. A final investment decision is anticipated around 2026 following the feasibility study.

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As part of its Corporate Strategy 2027, titled “Leveraging Our Integrated Strength for the Future,” announced in April 2025, MC aims to boost equity-based resource production. It aims to boost competitiveness with its value-creation framework: “Enhance, Reshape, and Create.” Copper should see steady demand growth. But declining ore grades make it harder to develop new mines. This raises concerns about supply stability. MC is investing to ensure a stable copper supply. This resource is vital for building a decarbonized society.