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Strategic Investment Talks Underway for Arizona’s Copper World
Canadian miner Hudbay Minerals (TSX, NYSE: HBM) is in discussions with investors from the Middle East and Japan regarding the sale of a minority stake in its flagship Copper World project in Arizona. According to Bloomberg, CEO Peter Kukielski met with key interested parties in Saudi Arabia in November 2023.
Among the potential investors is Manara Minerals Investment Co., though no confirmation has been provided. Japanese trading houses and UAE investors have also expressed interest. Hudbay plans to sell up to 30% of the project, with the sale process expected to conclude within six months.
By 11 a.m. ET, Hudbay Minerals’ shares had risen 0.8% to C$12.04, giving the Toronto-based company a market capitalization of C$4.75 billion ($3.31 billion).
Copper Market Trends and U.S. Policy Impact
The U.S. copper market is experiencing a surge following former President Donald Trump’s directive for the Commerce Department to investigate foreign copper imports. This move has prompted traders to ship metal to the U.S. ahead of potential tariffs.
On Thursday, copper prices on the London Metal Exchange rose 0.6% to $10,046.50 per tonne, while New York’s Comex prices neared record highs.
Hudbay’s Copper World Advances with Full Permits
Hudbay’s proposed 85,000-tonne-per-year Copper World project in Arizona is now fully permitted. In January, the Arizona Department of Environmental Quality (ADEQ) issued the project’s air quality permit, completing its regulatory approvals.
The company is now finalizing a Definitive Feasibility Study (DFS), targeting an internal rate of return (IRR) greater than 15%. The study is expected to be completed in the first half of 2026.
Copper World is projected to boost Hudbay’s annual copper production by over 50%. An updated prefeasibility study for Phase I estimates an after-tax net present value (NPV) of $1.1 billion (at an 8% discount rate) and an IRR of 19%, based on a copper price of $3.75/lb.
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