The Copper Mountain Mine merger will be bringing with it $20 million US of “operating efficiencies”, according to a press release from its new owner.
The $429 million US merger with Hudbay Minerals was finalized on June 20, following votes by the company’s shareholders.
In its release following the vote, one of the pieces touted by Hudbay had a heading under “efficiencies”, which included $10 million US in corporate synergies from the merger, followed by $20 million US in operating cost reductions “through the application of Hudbay’s operating efficiency practices to the Copper Mountain Mine.”
The Copper Mountain Mine has employed around 400 people in recent years. It is not known how many employees will be impacted by the merger.
The CEO of Copper Mountain is not staying on and has instead retired to act as a consultant over the next year.
The merger has raised red flags with local Indigenous bands, who were in the middle of talks with Copper Mountain on an agreement on the mine’s environmental impact. Those talks broke down ahead of the merger.
The bands also aired concerns about a disregard they felt that Hudbay was showing to Indigenous people similar to how they said the company treated those in South America.
About 45 per cent, based on value, of the newly merged company’s resource holdings are located in South American nations, including two projects in Peru.