Copper: Escondida, Quellaveco and Anglo American SurNarrow moat

Mitsubishi Corporation (8058) — moat facet

Mitsubishi's copper profit more than doubled on unchanged volume, and a third of the increase was reversing an old write-down.

Copper replaced coal as Mitsubishi's largest mining profit. The company's disclosed copper businesses earned ¥63.8 billion in the year to March 2025 and ¥149.9 billion in the year to March 20261. Its equity copper production was 325 thousand tonnes in calendar 2023, 329 thousand in 2024 and 326 thousand in 20252: flat volume, much higher profit.

Equity copper production (thousand tonnes, calendar years)325202332920243262025Mitsubishi Corporation results presentation, May 2026
Volume flat for three years while copper profit more than doubled.

The portfolio is made of stakes in some of the world's largest mines. It holds 8.25% of Escondida, which produced 1,307 thousand tonnes in 2025; 40% of Quellaveco in Peru; 20.44% of Anglo American Sur; 5% of Los Pelambres; and 10% of Antamina3. Quellaveco alone contributed ¥56.4 billion, up from ¥27.2 billion4.

Part of the increase was an accounting reversal. Mitsubishi reversed ¥53.2 billion of earlier impairments on Anglo American Sur5, taking its book value to ¥216.5 billion6. The stake had been acquired for US$4.51 billion7.

The company's sensitivity is about ¥2.6 billion of net profit per $100 a tonne of copper8, and its forecast for the current year assumes $11,883 a tonne against $10,817 in the year to March 20269.

The mines are large. On a 100% basis in calendar 2025, Escondida produced 1,307 thousand tonnes of copper, Quellaveco 310 thousand, Los Pelambres 295 thousand and Anglo American Sur 207 thousand, while Antamina produced 368 thousand tonnes of copper and 384 thousand tonnes of zinc10. Quellaveco's reserves are 7.3 million tonnes of copper11, and Mitsubishi's investment and loans to the company that holds it total ¥523.5 billion12.

The exposure has grown. Ten years ago the company's copper sensitivity was about ¥0.9 billion per $100 a tonne13; it is now about ¥2.6 billion14.

The measure is copper profit excluding the reversal, about ¥97 billion in the latest year. Growth in that figure without growth in volume is price; growth with volume would be the portfolio.

Moat trajectory: Widening

Copper profit rose to ¥149.9 billion on higher prices, and the current year's forecast assumes a higher copper price still.

The number that tests this moat
Reported
Copper businesses net income
¥149.9bn against ¥63.8bn

Includes a ¥53.2 billion impairment reversal; equity production was flat at about 326 thousand tonnes, so the rest was price.

Source: Mitsubishi Corporation results presentation, May 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
Minority Stakes in Other People's Mines
Mitsubishi's copper is minority stakes in other companies' mines, and one of them is still worth less than it paid.
References
  1. ReportedThe company's disclosed copper businesses earned ¥63.8 billion in the year to March 2025 and ¥149.9 billion in the year to March 2026.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - net income by segment and of major subsidiaries and affiliates, with ownership, and the forecast by segment. — FY to March 2026 · publ. 1 May 2026 · source ↗
  2. ReportedIts equity copper production was 325 thousand tonnes in calendar 2023, 329 thousand in 2024 and 326 thousand in 2025: flat volume, much higher profit.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - the LNG, copper and steelmaking coal portfolios with stakes, capacities and production volumes, data centre capacity, the Thai and Indonesian automotive businesses, and Cermaq's salmon volumes. — FY to March 2026 · publ. 1 May 2026 · source ↗
  3. ReportedIt holds 8.25% of Escondida, which produced 1,307 thousand tonnes in 2025; 40% of Quellaveco in Peru; 20.44% of Anglo American Sur; 5% of Los Pelambres; and 10% of Antamina.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - the LNG, copper and steelmaking coal portfolios with stakes, capacities and production volumes, data centre capacity, the Thai and Indonesian automotive businesses, and Cermaq's salmon volumes. — FY to March 2026 · publ. 1 May 2026 · source ↗
  4. ReportedQuellaveco alone contributed ¥56.4 billion, up from ¥27.2 billion.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - the LNG, copper and steelmaking coal portfolios with stakes, capacities and production volumes, data centre capacity, the Thai and Indonesian automotive businesses, and Cermaq's salmon volumes. — FY to March 2026 · publ. 1 May 2026 · source ↗
  5. ReportedMitsubishi reversed ¥53.2 billion of earlier impairments on Anglo American Sur, taking its book value to ¥216.5 billion.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - the LNG, copper and steelmaking coal portfolios with stakes, capacities and production volumes, data centre capacity, the Thai and Indonesian automotive businesses, and Cermaq's salmon volumes. — FY to March 2026 · publ. 1 May 2026 · source ↗
  6. ReportedMitsubishi reversed ¥53.2 billion of earlier impairments on Anglo American Sur, taking its book value to ¥216.5 billion.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the notes on significant investments: MDP and BMA, Lawson, Eneco, LNG Canada, Anglo American Sur and Quellaveco, with book values and ownership. — FY to March 2026 · publ. 1 May 2026 · source ↗
  7. ReportedThe stake had been acquired for US$4.51 billion.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the consolidated statements of income, financial position and cash flows, the eight-segment note, dividends and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  8. ReportedThe company's sensitivity is about ¥2.6 billion of net profit per $100 a tonne of copper, and its forecast for the current year assumes $11,883 a tonne against $10,817 in the year to March 2026.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the risk disclosures: commodity and currency sensitivities, floating-rate debt, marketable securities and the Middle East. — FY to March 2026 · publ. 1 May 2026 · source ↗
  9. ReportedThe company's sensitivity is about ¥2.6 billion of net profit per $100 a tonne of copper, and its forecast for the current year assumes $11,883 a tonne against $10,817 in the year to March 2026.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - capital recycling and one-time items and adjusted consolidated net income. — FY to March 2026 · publ. 1 May 2026 · source ↗
  10. ReportedOn a 100% basis in calendar 2025, Escondida produced 1,307 thousand tonnes of copper, Quellaveco 310 thousand, Los Pelambres 295 thousand and Anglo American Sur 207 thousand, while Antamina produced 368 thousand tonnes of copper and 384 thousand tonnes of zinc.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - the LNG, copper and steelmaking coal portfolios with stakes, capacities and production volumes, data centre capacity, the Thai and Indonesian automotive businesses, and Cermaq's salmon volumes. — FY to March 2026 · publ. 1 May 2026 · source ↗
  11. ReportedQuellaveco's reserves are 7.3 million tonnes of copper, and Mitsubishi's investment and loans to the company that holds it total ¥523.5 billion.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the notes on significant investments: MDP and BMA, Lawson, Eneco, LNG Canada, Anglo American Sur and Quellaveco, with book values and ownership. — FY to March 2026 · publ. 1 May 2026 · source ↗
  12. ReportedQuellaveco's reserves are 7.3 million tonnes of copper, and Mitsubishi's investment and loans to the company that holds it total ¥523.5 billion.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the notes on significant investments: MDP and BMA, Lawson, Eneco, LNG Canada, Anglo American Sur and Quellaveco, with book values and ownership. — FY to March 2026 · publ. 1 May 2026 · source ↗
  13. ReportedTen years ago the company's copper sensitivity was about ¥0.9 billion per $100 a tonne; it is now about ¥2.6 billion.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2016 - the net loss and the impairment losses on resource-related assets in the Metals group. — FY to March 2016 · publ. May 2016 · source ↗
  14. ReportedTen years ago the company's copper sensitivity was about ¥0.9 billion per $100 a tonne; it is now about ¥2.6 billion.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the risk disclosures: commodity and currency sensitivities, floating-rate debt, marketable securities and the Middle East. — FY to March 2026 · publ. 1 May 2026 · source ↗
Sources
Generated September 24, 2026