Mitsubishi Corp. will acquire a 30% stake in Canada’s Hudbay Minerals’ Copper World project in Arizona for $600 million, marking the Japanese trading house’s first investment in a US copper mine since 1980.
According to Nikkei, the deal structure includes $420 million at closing and $180 million within 18 months, according to Hudbay’s announcement Wednesday. The mine is expected to produce 85,000 tonnes of copper annually over a 20-year lifespan starting around 2029.
The investment comes as copper faces potential supply shortages reaching 6 million tons by 2035, driven partly by data center demand, according to BloombergNEF. AI applications require 10 times the resource requirements of traditional cloud computing, intensifying pressure on copper supplies used extensively in data center infrastructure.
Mitsubishi’s move appears calculated to capitalize on supply constraints rather than explosive growth projections. Copper futures hit record highs this year, gaining more than 25%, while established producers like Anglo American cut output guidance for 2024 and 2025.
The companies plan to complete a definitive feasibility study by mid-2026 before making a final investment decision. The transaction is expected to close in late 2025 or early 2026, pending regulatory approvals.
Despite promotional language around “Made in America” copper production, the project’s success hinges on sustained high copper prices and execution of a complex development timeline in Arizona’s challenging regulatory environment.
