Unions back big Hudbay project as copper price gyrates

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.

By mid-Friday, Hudbay Minerals’ shares had risen 5.7% to $9.62 apiece in Toronto, giving the company a market capitalization of $3.73 billion (US$2.69 billion).

Hudbay’s proposed 85,000-tonne-per-year Copper World project in Arizona is fully permitted to begin construction. The company is now focused on completing a definitive feasibility study 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.

Copper price 

The union support for Hudbay comes as the copper price has fallen 9.9% this month to $4.521 per lb. on the Comex exchange in New York on Friday from $5.0190 per lb. on April 1. The price rose 20¢ or 4.6% on Friday from the day earlier close of $4.321 per pound.

The nearly 10% decline this month in copper prices during April is attributed to escalating trade tensions between the U.S. and China, including the imposition of new tariffs. Analysts suggest that these geopolitical factors are exerting downward pressure on base metal prices, despite ongoing supply constraints.

In tit for tat moves this week, Beijing hiked its tariffs on U.S. imports to 125%, retaliating against President Donald Trump’s move to hike levies on Chinese goods to 145%. While the White House has paused worldwide reciprocal tariffs for 90 days, the trade war with China still threatens to upend global supply chains.

Hudbay hikes 0utput 

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

Construction of the mine is anticipated to generate more than 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 U.S. taxes, including $420 million to state and local governments.

Foreign interest

Hudbay is in talks with investors from the Middle East and Japan to sell a 30% stake in Copper World, Bloomberg News reported last month.

Among the potential investors is Manara Minerals Investment, a joint venture between Saudi state mining company Ma’aden and the government’s Public Investment Fund, though Manara hasn’t confirmed its interest. The project has attracted interest from Japanese trading houses and United Arab Emirate investors, CEO Peter Kukielski told Bloomberg.