Hudbay and Mitsubishi approved Copper World construction. The 17% IRR is the study’s, at $5.00 copper

Hudbay Minerals said on October 21 that it and Mitsubishi Corporation had formally approved the final investment decision to proceed with construction and development of the Copper World project in Arizona, about 50 kilometres southeast of Tucson. Copper World is 70% owned by Hudbay and 30% by Mitsubishi under a joint venture Hudbay dated to January 2026. First production is targeted for the second half of 2029. Hudbay said it will file a technical report under National Instrument 43-101 containing the definitive feasibility study. That report was still to be filed when the release went out.

Initial growth capital is $2.07 billion in 2026 dollars, or $1.84 billion net of a precious-metals stream deposit. Hudbay said its own capital contributions are expected to be about $500 million, less than 25% of the initial growth capital, and not required until 2028. Mitsubishi, in its own October 21 release, said it expects an additional equity contribution of $423 million toward initial development, bringing its cumulative investment to $1.02 billion. Mitsubishi said the project has secured all major permits required for development and initial operation. That is Mitsubishi’s statement.

The base case is a 15-year mine life using mineral reserves and, Hudbay said, requiring only state and local permits. After-tax net present value at 8% is $1.2 billion and the internal rate of return is 17% at a long-term copper price of $5.00 a pound, or $2.3 billion and 22% at $6.00 a pound. Those are the study’s prices. Average annual copper production is 102,000 tonnes over the first 10 years, with average cash costs of $1.65 a pound over that period, as defined in the release. The 37-year extension case uses measured and indicated resources, expands onto federal lands in year 10, and is subject to obtaining federal permits. Its after-tax NPV at 8% is $2.5 billion and the IRR is 19% at $5.00 copper. The extension case is not the permitted mine that was sanctioned.

Hudbay’s funding plan lists Mitsubishi’s $600 million initial joint-venture equity investment, Wheaton’s $230 million stream deposit, and about $650 million in anticipated project-level debt, which the company said represents less than 30% leverage. Anticipated debt is not committed debt. A $2.9 billion figure that appeared in a later industry recap is not the initial-capital line in Hudbay’s release and is not used here. This desk does not tell anyone to buy, sell or hold the shares.