Andy Hoffman

The chief executive officer of HudBay Minerals Ltd. is stepping down less than a year after reclaiming the top job in a bitter proxy battle.

Peter R. Jones will retire at the end of the year, the company announced Thursday. HudBay president and chief operating officer Michael Winship has resigned effective immediately.

The surprise shakeup marks yet another tumultuous episode in the zinc and copper miner's history. Mr. Jones returned to the CEO job in March as part of successful proxy contest led by Monaco-based hedge fund SRM Global Master Fund Ltd., a major HudBay shareholder.

Mr. Jones had previously been HudBay's CEO from 2004 until early 2008 when he was ousted in a board room skirmish that saw chairman Allen Palmiere take over the top executive role.

Mr. Palmiere resigned in March amid mounting criticism of an ill-fated attempt to merge with rival Lundin Mining Corp.

Mr. Jones' second departure from the HudBay CEO job comes amid a strong performance by the company's shares due to bright prospects for its Lalor Lake development project.

HudBay's stock has surged 439 per cent this year on impressive drill results from Lalor and rebounding base metal prices.

HudBay said Warren Holmes, a former Noranda and Falconbridge executive, will take over as interim CEO until a replacement for Mr. Jones is found.

“On behalf of the board of directors, I would like to thank Mr. Jones for his tireless efforts and leadership and for the significant appreciation in shareholder value realized under his watch,” Wesley Voorheis, HudBay's chairman said in a statement.

“While he is retiring, we will continue to benefit from his leadership and expertise in his ongoing role as director. I would also like to take this opportunity to thank Mr. Winship for his valuable contributions to HudBay.”