Hudbay Minerals to sell 30% stake in Arizona copper mining project for US$600 million
Hudbay Minerals said on Wednesday Mitsubishi Corp will buy a 30 per cent stake in its Copper World project in Arizona for US$600 million, boosting financing and strategic backing for the U.S. copper mine.
The deal is expected to close later this year, or early next year.
Last month, U.S. President Donald Trump imposed a 50 per cent tariff on copper pipes, wiring and other semi-finished products, but exempted refined copper cathodes and raw materials such as ores.
Hudbay said its 'Made in America' copper production will strengthen the domestic supply chain.
Copper World, which is being constructed in Pima County, Arizona, comprises four open-pit copper mines in the first phase, with more planned for later.
The mine is expected to produce 85,000 tonnes of copper per year over an initial 20-year lifetime.
Market reaction
U.S.-listed shares Hudbay rose nearly 17 per cent in the premarket trading.
Analyst Shane Nagle of National Bank Financial said the $600 million Mitsubishi joint venture is a 'significantly accretive' deal that underscores the scarcity of shovel-ready copper projects globally and the importance of investing in the U.S. critical minerals supply chain.
By the numbers
Mitsubishi will pay $420 million initially upon the closing and remaining $180 million will be paid within 18 months after the deal is complete.
Copper World will facilitate a $1.5 billion investment into the U.S. critical minerals supply chain, the company said.
(Reporting by Sumit Saha in Bengaluru; Editing by Sahal Muhammed)
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