Shares in Hudbay Minerals Inc. surged after it announced a deal with Mitsubishi Corp. to sell a 30 per cent stake in an Arizona copper project the Toronto-based miner says will support U.S. national security goals.
Hudbay's stock was trading at C$15.61 midday Wednesday, a jump of more than 15 per cent.
The rise followed news that Mitsubishi has committed to invest US$600 million in Copper World, consisting of US$420 million for a 30 per cent equity interest in the project at closing and US$180 million within 18 months of closing.
Hudbay said the deal secures a long-term strategic partner in Mitsubishi, one of the largest Japanese trading houses.
"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," Hudbay chief executive Peter Kukielski said in a news release.
Taro Abe, chief operating officer of Mitsubishi's critical minerals division, said the deal is also of strategic importance to his firm.
"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," Abe said.
The joint-venture partners say Copper World is expected to direct US$1.5 billion into the U.S. critical minerals supply chain.
The U.S. has imposed a 50 per cent tariff on imported semi-finished copper products like wires, rods and pipes, and "copper-intensive derivative products" like cables. The White House said President Donald Trump's proclamation was meant to "address the effects of copper imports on America’s national security."
Copper ores, concentrates and other inputs, as well as scrap, are not subject to the levy.
The first phase of Copper World, south of Tucson, Ariz., is expected to produce 85,000 tonnes per year of the red metal over two decades.
"Copper World’s 'Made in America' copper production will contribute to the domestic U.S. copper supply chain and strengthen manufacturing capacity, national security and energy independence," the partners said.
A detailed feasibility study is expected next year, along with an official decision to go ahead with construction.
Also Wednesday, Hudbay reported US$117.7 million in second-quarter net earnings attributable to owners, or 30 cents US per diluted share, for the quarter ended June 30 compared with a loss of US$16.5 million, or four cents US per diluted share, a year earlier.
On an adjusted basis, Hudbay earned 19 cents US per share in its latest quarter compared with an adjusted result of zero cents US per share a year ago.
Revenue totalled US$536.4 million in its latest quarter, up from US$425.5 million in the same quarter last year.
This report by The Canadian Press was first published Aug. 13, 2025.
Companies in this story: (TSX: HBM)
Lauren Krugel, The Canadian Press
