Arizona copper project approved for $2M in tax credits after job growth

Arizona copper project turns new jobs into $2 million in tax credits

A copper operation in southern Arizona is drawing attention after its job creation helped unlock up to $2 million in refundable state tax credits. Gunnison Copper says its Johnson Camp Mine created 81 qualifying jobs during the 2025 tax year, putting the project in line for substantial state support.

The company expects another 19 qualifying jobs during 2026. If those plans are achieved, Gunnison expects the total refundable tax credit opportunity to reach $2 million, providing cash funding tied to its employment and investment activity in Arizona.

The first wave of jobs has already been created

Gunnison reported 81 qualifying jobs at its Arizona operations during the 2025 tax year. Those positions are connected to the ramp-up of the Johnson Camp Mine, which is already producing copper cathode in Cochise County.

The company says those jobs are supporting employment and economic activity in southern Arizona. The employment figure also forms the basis for the first portion of the refundable tax credits expected from the state program.

The tax credit money is expected in two stages

Gunnison expects to receive about $1.62 million in cash from refundable Arizona tax credits during the fourth quarter of 2026. That amount is tied to the 81 qualifying jobs created during the 2025 tax year.

A second payment is expected in the fourth quarter of 2027. Gunnison estimates that another $380,000 in refundable credits could follow if it creates the additional 19 qualifying jobs expected during 2026.

Johnson Camp is already producing finished copper

The Johnson Camp Mine is more than a future development project. Gunnison says the operation is now producing copper cathode, giving the company’s Arizona activities an operating component while its larger plans continue moving forward.

The Johnson Camp asset has a production capacity of up to 25 million pounds of finished copper cathode annually. Gunnison says the operation is fully funded by Nuton LLC, a Rio Tinto venture.

The state program is designed to attract investment

Gunnison’s support comes through Arizona’s Qualified Facility Tax Credit program, administered by the Arizona Commerce Authority. The program is designed to encourage investment in Arizona manufacturing facilities while supporting the creation of qualifying jobs.

For Gunnison, approval provides access to non-dilutive, refundable state income tax credits tied to qualifying capital investment and employment. The company says the program supports its broader strategy of producing copper in Arizona.

Little-known fact: Arizona’s copper deposits are largely porphyry deposits, formed from metal-bearing fluids associated with ancient magma systems.

Gunnison is also advancing a much larger copper project

Johnson Camp is only one part of Gunnison’s Arizona portfolio. The company is also advancing the Gunnison Copper Project, its flagship development in the Cochise Mining District in the southern Arizona Copper Belt.

Gunnison says the district contains 12 known deposits within an 8-kilometer economic radius. Several deposits could potentially serve as satellite feeder sources for infrastructure associated with the larger Gunnison Project.

The planned operation would process copper in Arizona

Gunnison’s March 2026 preliminary economic assessment describes a conventional operation for the larger project. The planned approach includes open-pit mining, heap leaching, solvent extraction, and electrowinning to produce finished copper cathode on-site.

The plan also includes a direct rail link. Gunnison says the project is being advanced as part of its strategy to develop domestic copper production and strengthen U.S. supply chains.

The company says the project could have major economic value

Gunnison’s March 2026 preliminary economic assessment reported a projected net present value of $2 billion, using an 8% discount rate. It also reported an internal rate of return of 23% and a projected payback period of 3.9 years.

Those figures come from a preliminary assessment rather than a completed mine plan. The company cautions that the assessment includes Inferred Mineral Resources and that its conclusions are not guaranteed to be realized.

More work is still ahead for the larger mine

Gunnison continues working with state and federal agencies as it advances its development plans. The company recently submitted a permit amendment for a mined land reclamation plan and has outlined a path toward fully permitting the larger Gunnison Project.

Gunnison says it is targeting a fully permitted project by mid-2028. Future progress will depend on regulatory approvals, financing, project development work, and other factors identified by the company.

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The Arizona project connects jobs with domestic copper production

Gunnison’s latest announcement links two parts of its Arizona strategy: local employment and copper production. The Johnson Camp Mine has already created 81 qualifying jobs, while the company expects 19 more and continues advancing its larger copper project.

If the expected employment targets are met, Gunnison anticipates receiving $2 million in refundable tax credits across two years. The company says the support will accompany continued investment in Arizona and efforts to develop a domestic copper supply.

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Could Arizona’s growing copper industry bring more jobs and investment to rural communities? Share your thoughts.

This slideshow was made with AI assistance and human editing.

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