Canada’s Hudbay Minerals (TSX, NYSE: HBM) has reached a labour agreement with union leaders to construct the Copper World mine in Arizona.
The agreement marks a key step in the development of the copper mine, which is expected to produce about 92,000 tonnes of the metal annually for the first decade of its anticipated 20-year lifespan.
The Copper World mine, near Tucson, is poised to be one of southern Arizona’s biggest non-government-funded mine construction projects. It’s also anticipated to play a crucial role in meeting domestic demand for copper, driven by the expansion of renewable energy technologies and electric vehicles (EVs).
The project would create over 400 direct jobs and up to 3,000 indirect positions in a boost to the local economy. During its first stage, the operation will pay more than US$850 million in federal taxes and about US$170 million to the state.
Precedent
Hudbay and the unions say the pact could set a precedent for future negotiations by ensuring a stable relations as the project progresses.
The deal involves the International Brotherhood of Boilermakers, Iron Ship Builders, Forgers and Helpers Local 627; the Labourers International Union of North America Local 1184; and the United Brotherhood of Carpenters and Joiners of America Local 1912.
Hudbay’s operating portfolio includes the Constancia mine in Cusco, Peru, Snow Lake in Manitoba and the Copper Mountain mine in British Columbia.
Shares in Hudbay Minerals fell 2.8% by mid-Friday in Toronto to $12.46 apiece, valuing the company at $4.9 billion. They’ve traded in a 52-week range of $5.46 to $14.33.
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