Hudbay secures union support for Copper World mine in Arizona

Canadian miner Hudbay Minerals (TSX, NYSE: HBM) has reached an agreement with a coalition of union building trades to support the construction of its Copper World mine in Arizona.

The letter was signed by seven union organizations, including the International Brotherhood of Boilermakers Local 627, IBEW Local 570 and the Western States Regional Council of Carpenters, among others.

By 11 a.m. ET, Hudbay Minerals’ shares had risen 4% to C$9.48 apiece, giving the Toronto-based company a market capitalization of C$3.73 billion ($2.69 billion).

Hudbay’s proposed 85,000-tonne-per-year Copper World project in Arizona is currently fully permitted to begin construction.

In January, the miner announced that the Arizona Department of Environmental Quality (ADEQ) had issued its air quality permit. Combined with earlier approvals for aquifer protection and land reclamation, this marked the completion of the project’s permitting process.

The company is now focused on completing a definitive feasibility study (DFS) with an internal rate of return greater than 15%. The study is already underway and is expected to be completed in the first half of 2026.

According to Hudbay, Copper World is expected to increase the company’s annual copper production by more than 50% from current levels. The company also has copper mines in Canada and Peru.

Mine construction is anticipated to generate over 400 direct jobs and as many as 3,000 indirect jobs. Over its expected 20-year life, the mine is projected to contribute more than $850 million in US taxes, including $420 million to state and local governments.

Saudi, UAE and Japanese interest

Bloomberg News reported last month that Hudbay is in talks with investors from the Middle East and Japan to sell a minority stake in the Copper World project.

Chief executive officer Peter Kukielski told Bloomberg on Thursday that he met with “a lot of the key interested parties” in Saudi Arabia in November last year.

Among the potential investors is reportedly Manara Minerals Investment Co., though the Saudi venture has not confirmed its interest.

According to Kukielski, the project has also attracted interest from Japanese trading houses and UAE investors.