HudBay Not Interested in Thompson Creek

HudBay Minerals Inc. (HBM), the developer of the Constancia copper mine in Peru, isn’t interested in Thompson Creek Metals Co. as it looks for possible acquisitions.

HudBay’s search is focused on projects that it can develop itself, Chief Executive Officer David Garofalo said. Thompson Creek, a molybdenum producer that’s building a copper mine in British Columbia, doesn’t meet Toronto-based HudBay’s criteria, Garofalo said today in a phone interview.

There has been “chatter” about HudBay “kicking the tires” on Littleton, Colorado-based Thompson Creek, Garrett Nelson, an analyst at BB&T Capital Markets, said in a note today. The combination of the companies would make strategic sense, he said.

“Our criteria for growth are quite clear in terms of greenfield projects,” Garofalo said. “I wish Thompson Creek very well but there’s no truth to the rumors.”

A Thomson Creek spokeswoman declined to comment on speculation about the company being a takeover target.

Thompson Creek rose 6.5 percent to $3.76 at 11:57 a.m. in New York. HudBay gained 3.6 percent to C$8.64 in Toronto.

To contact the reporter on this story: Liezel Hill in Toronto at lhill30@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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