Bagdad Arizona was begun early in 1880. Copper ore was found there by prospectors. Because of its isolated location and low grade, however, ore was not developed. Although the Giroux Syndicate gained rights to the mine in 1906, it was not able to establish a thriving copper mine. Between 1906 and 1927 a number of companies tried to work the mine with the greatest (yet still unsuccessful) effort being that of the Lewishon interests.
In 1927 the Bagdad Copper Company began operation. The timing of the Great Depression in 1929, slowed but did not stop their efforts. The company managed to continue development through the 1930's and, in 1941 received a government loan that enabled them to add new equipment. Since the low grade ore made underground mining unprofitable, General Manager, Ernest R. Dickie, began converting to an open pit operation. Dickie used large trucks for haulage, and Bagdad became the testing ground for much of the change taking place in large ore trucks. All underground mining at Bagdad had ended by 1950.
Cyprus Mines Corporation formerly operated the copper mine until Cyprus merged with Phelps Dodge. This copper mine does open pit mining and currently runs on an around-the-clock schedule. The copper concentrate is either trucked to southern Arizona, or taken by semi to 20 miles outside of town to a small railroad community named Hillside.
Freeport-McMoRan (which acquired Phelps Dodge in 2007) owns all of the housing and commercial buildings in Bagdad. The town has a main shopping center named Copper Plaza, with a small Bashas' grocery store and other businesses. Copper Plaza used to have a bank, but Stockmen's Bank pulled out due to lack of profits. However, the Arizona State Credit Union and the Bashas' Associates Federal Credit Union both installed ATMs inside Bashas'.
The Bagdad Community Health Center operates a clinic and provides Bagdad with medical care. The clinic is operated by registered nurses and one doctor. The one doctor is out of the Prescott area is in charge of the facility. Fry's Food and Drug operates a pharmacy in this clinic as well.