Mitsubishi proposes $600m investment in US copper mine project
Japan’s Mitsubishi Corporation said on Thursday it would spend 600 million dollars to buy a 30 percent stake in a copper mine project in the United States. The move came after the Trump administration recently hiked tariffs on copper products.
The move is not unconnected with the aggressive tariff hike by Trump administration on some products from oversee countries imported into the United States. The US trade initiative is intended to protect local industries and boost jobs for American citizens.
The trading house said it reached the deal with the project’s Canadian owner, Hudbay Minerals. The venture is called Copper World and is being developed in outside Tucson, Arizona.
The two firms plan to start mining around 2029, with an anticipated output of as much as 100,000 tons per year.
The US is the second-largest consumer of copper in the world. Mitsubishi said it expected demand to increase in the country, citing its rising population, the growing power needs in the AI industry, and the shift to electrification.
President Donald Trump slammed 50 percent levies on some copper goods in August. They targeted semi-finished products like wires and pipes, as well as copper-intensive items such as cables and electrical components. The White House said the duties were aimed at boosting domestic copper production.
