Hudbay’s expands copper production with Copper Mountain buy
TSX- and NYSE-listed Hudbay Minerals has secured a $44.25-million deal to acquire Mitsubishi Materials Corporation's (MMC's) 25% stake in the Copper Mountain mine in British Columbia, consolidating its ownership of the asset and positioning itself as Canada’s second-biggest copper producer.
"This acquisition is consistent with our strategy of expanding copper production in mining-friendly jurisdictions," commented president and CEO Peter Kukielski.
"The Copper Mountain mine is a key asset, and this move simplifies its ownership structure while providing Hudbay greater exposure."
The transaction is expected to enhance Hudbay’s production profile, with copper output from Copper Mountain projected to rise to 60 000 t by 2027—more than a 200% increase from 2024 levels. Hudbay will also gain rights to 15% of the mine’s copper concentrate offtake for the next 15 years, with 100% offtake rights after that period.
Hudbay plans to continue its optimisation programme at Copper Mountain, which has included reactivating the full mining fleet and adding additional equipment. These efforts have already resulted in stronger mill performance, with 2024 mill availability hitting 92% and copper recovery rates of 82%, up from 85% and 80%, respectively, in 2023.
The transaction includes a $4.5-million upfront cash payment and up to $39.75-million in deferred and contingent payments. Hudbay will also assume responsibility for an outstanding $104-million intercompany loan owed by Copper Mountain Mine (BC) (CMBC), the 100% owner of the mine.
The transaction is expected to close in the second quarter of 2025, subject to regulatory approval and other customary conditions. 
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