Grupo México SAB de CV’s Asarco unit is negotiating with unionized workers to restart the mothballed Hayden copper smelter and nearby copper mines in Arizona, as well as the Amarillo copper refinery in Texas, according to a Reuters report on May 24. This move is driven by surging copper prices and the increasing need for copper smelting capacity in the US, which currently has only two operational domestic smelters: Freeport-McMoRan Inc.’s Miami smelter in Arizona and Rio Tinto Group’s Kennecott smelter in Utah.
While the timeline for the restart remains unclear, sources indicate that Asarco is actively negotiating with a union representing mining and smelting workers. Grupo México has not yet responded to requests for comments from S&P Global Commodity Insights.
The Hayden smelter, which has a capacity of 300 million pounds of copper per year, has not been fully operational for over four years due to a labor strike. Additionally, the facility has caused environmental damage and is classified as a hazardous waste site by the US Environmental Protection Agency.
The potential restart of the Hayden smelter and associated mines could significantly bolster US copper production capacity, addressing the rising demand for the metal amid its increasing prices and essential role in various industries, including renewable energy and electric vehicles. 
