Aug 13 (Reuters) - Hudbay Minerals ( HBM ) said on

Wednesday Mitsubishi Corp will buy a 30% stake in its

Copper World project in Arizona for $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.

WHY IT'S IMPORTANT

Last month, U.S. President Donald Trump imposed a 50% 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.

CONTEXT

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% in the premarket

trading.

Analyst Shane Nagle of National Bank Financial said the $600

million Mitsubishi ( MSBHF ) 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 NUMBERS

Mitsubishi ( MSBHF ) 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.