Hudbay and Mitsubishi Approve $2.07B Copper World Mine Near Tucson

Hudbay Minerals and Mitsubishi Corp. approved construction of the Copper World project in southern Arizona on October 21, 2026, committing to a $2.07 billion initial construction program for an open-pit copper mine about 31 miles southeast of Tucson. First production is targeted for the second half of 2029, and the project is expected to employ more than 1,000 construction workers (Engineering News-Record).

Hudbay owns 70 percent of the joint venture and Mitsubishi owns 30 percent (Engineering News-Record). The project, formerly known as Rosemont Copper (Engineering News-Record), is expected to help roughly double Hudbay's annual copper production to about 250,000 tonnes (Canadian Mining Journal).

What Happened

The approval follows completion of a definitive feasibility study. Capital costs have risen sharply since a 2023 prefeasibility study estimated about $1.3 billion. Canadian Mining Journal reported that construction costs rose 59 percent and that scope changes added about $200 million (Canadian Mining Journal).

The financing plan limits Hudbay's own cash outlay. ENR reported that the package includes Mitsubishi's initial $600 million investment for its stake, a $230 million precious metals stream deposit from Wheaton, about $127 million in equipment financing and about $650 million in project-level debt. Mitsubishi would contribute additional equity of up to $423 million, or about $218 million if the project-level debt is secured, and Wheaton would pay another $70 million to help fund the later expansion (Engineering News-Record).

Hudbay executive Eugene Lei said the structure "only requires Hudbay to fund one-quarter of the project capital cost and defers Hudbay's first capital contribution to 2028" (Engineering News-Record). Canadian Mining Journal put Hudbay's expected contribution at about $500 million (Canadian Mining Journal).

Scale of the Build

• Concentrator: 60,000 tons per day at start, expanding to 90,000 tons per day in year five.
• In-pit crushing and conveying: Up to 100,000 tons per day.
• Copper output: About 92,600 tons a year in years one through five and about 132,300 tons a year in years six through ten.
• Workforce: More than 1,000 construction workers and about 500 permanent operating jobs.
• Mine life: 15 to 37 years, with a possible expansion onto federal land around year ten.

(Engineering News-Record)

ENR did not name an engineering, procurement and construction management contractor for the project.

Permits and Opposition

Hudbay says it has obtained all major permits for the base project, which requires only state and local approvals. The Arizona Department of Environmental Quality issued the project's aquifer protection permit in August 2024, and a separate aquifer water pumping permit expires in January 2028 (Engineering News-Record).

Pima County is reviewing the feasibility study and continues to oppose the mine. County Administrator Jan Lesher cited "increased production, the apparent use of dry stack or filtered tailings, and changes in mine facility configurations." ADEQ responded that design changes "are common and must be addressed through the established permitting process." Tohono O'odham Nation Chairman Verlon Jose said, "We have a collective responsibility to protect the Santa Rita Mountains for future generations" (Engineering News-Record).

Market Reaction

Hudbay shares rose 0.2 percent in Toronto on the day of the announcement. RBC Capital Markets analyst Sam Crittenden said the reaction may be limited because the scope and initial capital cost were largely as expected (Canadian Mining Journal).

Implications for Owners, Developers, Contractors and Subs

For heavy civil and industrial contractors: A greenfield mine with a 60,000 ton per day concentrator, crushing and conveying systems, tailings facilities and support buildings is a large and varied industrial construction program. With more than 1,000 construction workers needed between now and first production in 2029, the project will compete for craft labor across southern Arizona.

For owners watching costs: The jump from a $1.3 billion estimate in 2023 to $2.07 billion now, with a reported 59 percent rise in construction costs, is a clear marker of how much industrial construction pricing has moved in three years. It is consistent with the materials trends in our report on September construction input prices.

For the broader market: First copper from the mine is still about three years away, so it offers no near-term relief on wire, cable and pipe costs, but it adds to the critical minerals buildout that is also driving projects such as Phoenix Tailings' rare earth plant in Rochester.

What to Watch

• Award of EPCM and major construction contracts.
• Pima County's response to the feasibility study and any legal challenges.
• Whether the project-level debt is secured, which affects Mitsubishi's additional equity.
• Renewal of the water pumping permit ahead of its January 2028 expiration.

Bottom Line

Copper World is now a sanctioned $2.07 billion construction project, backed by Mitsubishi equity, a Wheaton stream and project debt. It will need more than 1,000 construction workers ahead of first copper in late 2029, while local opposition and a 2028 permit deadline remain open issues.

Related Coverage

• Update: Construction Input Prices Up 11.2% in September, Most in Nearly 4 Years
• Phoenix Tailings Picks Rochester for $375M Rare Earth Separation Plant
• Megaprojects Hold One in Four Nonresidential Construction Dollars as August Sets Record
• Senate Permitting Bill Sets 150-Day Lawsuit Window and Permit Certainty Rules

Image credit: Hudbay Minerals, via Canadian Mining Journal. Image from the source article.

Sources

• Engineering News-Record, "Hudbay, Mitsubishi Approve $2.07B Arizona Copper Mine Construction": https://www.enr.com/articles/64075-hudbay-mitsubishi-approve-207b-arizona-copper-mine-construction
• Canadian Mining Journal, "Hudbay, Mitsubishi approve Copper World construction": https://canadianminingjournal.com/news/hudbay-mitsubishi-approve-copper-world-construction