Hudbay Announces $600 Million Strategic Investment from Mitsubishi Corporation for 30% Joint Venture Interest in Copper World
Secures a premier long-term strategic partner in Mitsubishi, which has a long history of joint venture partnerships in the highest quality copper mines globally
Mitsubishi's strategic partnership validates the attractive long-term value of Copper World as a world-class copper asset and endorses the strong technical capabilities of Hudbay
Facilitates approximately $1.5 billion investment in the U.S. critical minerals supply chain to deliver an anticipated 85,000 tonnes of "Made in America" copper production annually for 20 yearsi
Copper World is expected to create more than 1,000 jobs during project construction with 400 direct jobs and up to 3,000 indirect jobs once in full production
Mitsubishi's initial investment of $600 million and pro-rata equity capital contributions provide significant financial flexibility by reducing Hudbay's estimated share of the remaining capital contributions to approximately $200 million based on PFS estimates
Defers Hudbay's first capital contribution to 2028 at the earliest based on PFS estimates
Increases levered project IRR to Hudbay to approximately 90% based on PFS estimatesii
Agreed on terms for an enhanced precious metals stream with Wheaton which contemplates up to $70 million contingent payment that recognizes long-term potential of Copper World in addition to initial $230 million stream deposit
Transaction would achieve the key funding elements in Hudbay's 3-P prudent financing framework for the development of Copper World
TORONTO, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. ("Hudbay" or the "Company") (TSX, (TSX, NYSE:HBM) is pleased to announce that Mitsubishi Corporation ("Mitsubishi") has agreed to acquire a 30% interest in Copper World LLC, a wholly-owned subsidiary of Hudbay which owns the fully-permitted Copper World project in Arizona ("Copper World") for an initial cash contribution of $600 million, comprising $420 million as consideration for a 30% equity interest in Copper World at closing and $180 million as a matching contribution within 18 months of closing (the "JV Transaction"). The JV Transaction is subject to the satisfaction of customary closing conditions. All dollar amounts are in U.S. dollars, unless otherwise noted.
"Securing Mitsubishi as a 30% partner in Copper World is an important milestone for Hudbay as we establish a long-term strategic partnership to advance this high-quality copper project towards sanctioning and to unlock significant value in our copper growth portfolio," said Peter Kukielski, Hudbay's President and Chief Executive Officer. "I have a long history of involvement with joint ventures over my career, including with Mitsubishi at Antamina back in the 1990s and 2000s, and I've seen how strategic joint ventures have built some of the best mines in the world. After a highly robust and competitive process, we have selected the premier partner of choice in Mitsubishi. Through this partnership we will leverage our complementary strengths to deliver our world-class Copper World project, produce domestic copper in the U.S. for the U.S. critical minerals supply chain and create value for all our stakeholders. We have also agreed to modernize the Wheaton precious metals stream, which, together with the recent achievement of our balance sheet targets, will complete the key elements of our prudent financing plan for Copper World, and we are very well positioned to build one of the next major copper mines in the U.S."
"Participation in Copper World is of significant strategic importance for Mitsubishi towards the realization of its growth strategy within the copper sector. We are pleased to collaborate with Hudbay, whose operational and development expertise is well-recognized and proven, to advance a definitive feasibility study. Drawing on our knowledge in copper mining investment developed through partnerships with global mining companies, and extensive business experience in North America developed over many years across diverse sectors including mineral resources trading, we aim to unlock the full potential of Copper World together with Hudbay," said Taro Abe, Mitsubishi's Critical Minerals Division COO, Mineral Resources Group.
Hudbay Significantly De-risks Copper World and Advances Towards a Sanction Decision in 2026
Realizes Attractive Valuation for Copper World Strategic Investment, $600 million Copper World JV Transaction with Mitsubishi for a 30% minority interest.
Implies a significant premium to consensus net asset value for Copper Worldiii.
Mitsubishi's $600 million initial investment will consist of $420 million at closing and $180 million within 18 months of closing.
Mitsubishi will also fund its pro-rata 30% share of future equity capital contributions.
Increases levered project IRR to Hudbay to approximately 90% based on pre-feasibility study ("PFS") estimatesii.
Secures The Premier Joint Venture Partner, Secures a long-term strategic partner in Mitsubishi, one of the largest Japanese trading houses with a global mining presence and a significant U.S. based business.
Mitsubishi is the strategic partner of choice with investments in a world-class portfolio of large and high-quality copper assets, including five of the top twenty copper mines globally by 2024 production.
Mitsubishi's wholly-owned U.S. subsidiary, Mitsubishi Corporation (Americas), has over 50 subsidiaries and affiliates across various business sectors, including mineral resources, oil & gas, real estate, mobility, food, power, etc., and manages the company's strategic investments with approximately $9 billion in total assets and trading businesses in North America, which encompass trading activity with a substantial volume of copper, precious metals, and aluminum in the U.S. market.
Strategic partnership validates the attractive long-term value of Copper World as a world-class copper asset and endorses the strong technical capabilities of Hudbay.
Enhances Stream, Agreed on terms with Wheaton Precious Metals Corp. ("Wheaton") to amend the existing precious metals streaming agreement.
In addition to the initial $230 million stream deposit, provides an additional contingent payment of up to $70 million on a future potential mill expansion recognizing the long-term potential at Copper World.
Ongoing payments for gold and silver amended from fixed pricing to 15% of spot prices to provide upside exposure to higher precious metals prices.
Updated structure aligns with the current development plan for Copper World and the joint venture agreement.
Achieves 3-P Plan with Significant Financial Flexibility for Development, Successfully completes key elements of Hudbay's prudent financial strategy as part of the three prerequisites ("3-P") plan for Copper World with the announcements of the JV Transaction and the enhanced Wheaton stream, together with the achievement of stated balance sheet targets.
Before accounting for proceeds from this Transaction, Hudbay has already achieved more than $600 million of cash and cash equivalents and a 0.4x net debt to adjusted EBITDA ratioiv, as of June 30, 2025, far exceeding the stated balance sheet targets.
The Mitsubishi initial investment and its pro-rata equity capital contributions, together with the amended Wheaton stream, provide significant financial flexibility by reducing Hudbay's estimated share of the remaining capital contributions to approximately $200 million based on PFS estimates, as shown in Figure 1, and defers Hudbay's first capital contribution until 2028 at the earliest.
DFS and Detailed Engineering Underway - Well positioned to advance Copper World towards a sanction decision in 2026.
Feasibility study for Copper World is underway with expected completion of a definitive feasibility study ("DFS") by mid-2026.
With this successful de-risking milestone at Copper World, Hudbay expects to accelerate detailed engineering, some key long lead items and other de-risking activities by advancing $20 million in ...
