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

The agreement involves 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, shares of Hudbay Minerals had increased by 4%, reaching C$9.48 each. This rise gave the Toronto-based company a market capitalization of C$3.73 billion (approximately $2.69 billion).

The Copper World project aims to produce 85,000 tonnes of copper annually and is fully permitted for construction. In January, the Arizona Department of Environmental Quality (ADEQ) issued the necessary air quality permit. This, along with prior approvals for aquifer protection and land reclamation, completed the project’s permitting process.

Currently, Hudbay is working on a definitive feasibility study (DFS) that is expected to reveal an internal rate of return exceeding 15%. This study is in progress and is anticipated to finish by the first half of 2026.

Hudbay estimates that the Copper World project will increase the company’s annual copper production by over 50% from current levels. The company also operates copper mines in Canada and Peru.

Construction of the mine is projected to create more than 400 direct jobs and up to 3,000 indirect jobs. Over its expected 20-year lifespan, the mine is forecasted to contribute over $850 million in U.S. taxes, including $420 million to state and local governments.

International Investor Interest

According to Bloomberg News, Hudbay is exploring potential partnerships with investors from the Middle East and Japan to divest a minority stake in the Copper World project.

CEO Peter Kukielski stated on Thursday that he had discussions with several key interested parties in Saudi Arabia as recently as November of last year.

Among the potential investors is Manara Minerals Investment Co., although the Saudi firm has yet to confirm its interest. Additionally, Kukielski mentioned that the project has garnered attention from Japanese trading houses and investors from the UAE.