Hudbay Minerals Inc. and Mitsubishi Corporation approved construction of Arizona’s Copper World project Wednesday, advancing a $2.07 billion initial capital plan while debt funding and later expansion permits remain pending.
The site is about 31 miles southeast of Tucson. Hudbay owns 70% of the venture and Mitsubishi 30%. The partners aim to begin production in the second half of 2029.
Hudbay’s new study forecasts average copper output of 102,000 metric tons a year during the first 10 operating years, up from 92,000 metric tons in its 2023 study. The initial mine plan covers 15 years, compared with 20 years in the earlier study.
The $2.07 billion estimate is stated in 2026 U.S. dollars and excludes $127 million in anticipated equipment financing. Hudbay’s plan also lists later capital spending for a molybdenum plant, an in-pit conveying system and a concentrator expansion. The company expects a $230 million deposit from Wheaton Precious Metals Corp. under a precious-metals agreement and plans to arrange about $650 million in project debt.
Mitsubishi estimates it may contribute a further $423 million in equity, subject to adjustment if external financing is secured. Under Hudbay’s assumption that the planned debt is raised, Mitsubishi’s additional contribution would be about $218 million. Hudbay expects its own contributions to total about $500 million, beginning in 2028.
Mitsubishi cited expected copper demand from electrification, data centers and generative AI as reasons for its investment. Hudbay forecasts jobs and tax revenue from Copper World, while Pima County has raised the possibility of costs for local groundwater users.
Hudbay says its existing approvals allow it to build the mine and begin operating on private land. Expansions within its 15-year plan will require permit amendments. The Arizona Department of Environmental Quality (ADEQ) issued an aquifer protection permit in 2024 and an air quality permit in 2025. A separate scenario extending the mine’s life to 37 years would reach federal land and require federal permits.
Pima County supervisors reaffirmed their opposition to the project in October 2025. In an April 2026 memorandum, the county said the air permit was under legal appeal and the project’s groundwater withdrawal permit expires Jan. 17, 2028.
