Marubeni Corporation (hereinafter, “Marubeni”) and Hudbay Minerals Inc. (hereinafter, “Hudbay”), a Canadian non-ferrous metals mining company, have concluded a Memorandum of Understanding (MOU) for an exploration partnership to newly detect and develop mineral deposits in Hudbay’s properties in the Flin Flon area, Manitoba, Canada.

Non-ferrous metals such as copper, zinc, lead, gold, and silver are essential for the realization of a decarbonized society, through their role in the promotion of electrification and the expansion of clean energy. Electric vehicles require four times as much copper as gasoline-powered vehicles, while offshore wind power generation facilities require five times as much copper as thermal power generation facilities. Demand for copper is accordingly forecast to increase significantly going forward.

Flin Flon and its surrounding area is renowned for containing some of the highest-grade copper and other non-ferrous metal deposits in the world, and Hudbay has extensive experience in this area, having developed and operated 29 mines there over a period approaching 100 years. This MOU sets the direction for a joint venture agreement that the two companies plan to enter into at a future point. The MOU envisages Marubeni providing specific minimum levels of funding towards operational expenditures required for joint exploration projects. Hudbay will conduct exploration activities as the operator, with Marubeni being afforded the option to acquire a substantial minority equity interest in projects, facilitating joint development and promotion by the two parties.

Marubeni has made Green Strategy one of its fundamental policies to enhance corporate value in its current Mid-Term Management Strategy “GC2024,” which positions copper as one its green businesses. Marubeni has to date developed three mines in Chile and is one of the top copper mining companies in Japan in terms of equity copper production. Marubeni is also promoting the exploration of non-ferrous metal deposits in the Ambler Mining District of Alaska in the United States^*1, and is aiming to grow its copper business in line with its long-term vision of becoming a forerunner in green business through its projects in Chile and the U.S. as well as the joint exploration project with Hudbay.

Hudbay Overview

Company Name:	Hudbay Minerals Inc.
Location:	Toronto, Ontario, CANADA
Established:	1927
Representative:	Peter Kukielski
Main Business:	Non-ferrous metal mining activities in Canada, the United States, and Peru, with operating assets in Canada and Peru, and a growth pipeline that includes projects in the United States and Peru.

*1 Related Press Release:
September 21, 2022
Acquisition of Stake in Valhalla Metals Inc. to Explore Non-ferrous Metals in Alaska, United States
https://www.marubeni.com/en/news/2022/release/00068.html