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Table of Contents
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Our Company
Our Company
Business and
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Our People
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Environment
Sustainability Performance
About This Report
Business and Financial Review
Sustainability Approach
Our People
Our Approach
Manitoba
Peru
Arizona and Nevada
Social Impact
Our Approach
Manitoba
Peru
Arizona and Nevada
Environment
Our Approach
Manitoba
Peru
Arizona and Nevada
Sustainability Performance
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Beyond the Pandemic Challenge
In 2020, like the rest of the world, Hudbay was
confronted by the challenge of COVID-19. Thanks to
the dedication of the many people across our
organization, we were able to meet that challenge
successfully and protect the well-being of our
employees and communities while continuing our
operations. Beyond COVID-19, 2020 was a year defined
by delivery, in which we met our guidance, delivered
on our commitments, made progress on key projects,
and continued to invest in our organization and culture.
Against a background of challenging political situations,
we acknowledged the imperative of addressing climate
change, and a renewed expectation that businesses
must contribute to building a more inclusive society.
While this combined annual and sustainability report
focuses on what we achieved in 2020, I see these
accomplishments as the foundation for long-term
growth and exceptional results.
Sustainability Performance
A Year of Achievements
In 2020, like the rest of
the world, Hudbay was
confronted by the
challenge of COVID-19.
Thanks to the dedication
of the many people across
our organization, we were
able to meet that
challenge successfully.
PETER KUKIELSKI
About This Report
Manitoba Business Unit
Throughout 2020, the Manitoba Business Unit (MBU)
delivered solid performance – at the Lalor and
777 mines, at the Stall and Flin Flon mills and at the
Flin Flon zinc plant – allowing us to meet or exceed
the business unit’s guidance. Much of this success can
be attributed to the leadership Manitoba showed in
introducing rigorous COVID-19 protocols early in the
year. Through disciplined enforcement, the MBU did
not experience any pandemic-related delays or
interruptions, and it maintained this preparedness
level throughout the year. When the number of cases
in the province subsequently increased, the MBU was
well positioned to prevent transmission both within
and from the workplace.
In a challenging year, we achieved record throughput at
Lalor and the Stall mill. We also steadily expanded our
gold output, in line with a new mine plan that will
eventually allow us to more than double our annual gold
production as the New Britannia mill comes on stream.
The rapid advancement of the New Britannia mill
project was another highlight for the MBU.
Refurbishment proceeded ahead of schedule, and the
mill is now on track to be commissioned in mid-2021.
Once fully operational, the New Britannia mill will
support the transition of the Lalor mine and Snow
Lake area into a highly productive gold and base
metals producer, which will help provide strong
returns to our investors and greatly increase
optionality and flexibility for Hudbay. This outlook is
supported by exploration at Lalor and the Snow Lake
satellite deposits, which indicate strong potential for
extending mine life in the region.
In October, production at 777 was interrupted due to
an incident with the mine’s skip hoist. Consistent with
the MBU’s prompt action during the year, the issue was
addressed, and production resumed in late November
without impacting Manitoba’s ability to meet its
production or cost guidance for the year. During the
shutdown, a number of 777 personnel and pieces of
equipment were reassigned to Lalor, where their skills
were used productively and helped to further highlight
Lalor’s potential. The 777 mine remains scheduled for
closure in mid-2022, and we continue to work with the
community to help them successfully manage this
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transition. It is important to note that, after the closure,
the Flin Flon mill and tailings facility will be placed on
care and maintenance, reaffirming that our confidence
in the potential of the region remains strong.
South America Business Unit
Peru was hit hard by the COVID-19 virus and, as part of
its response, the Peruvian government declared a state
of emergency that required a shutdown of non-
essential businesses across the country in March 2020.
Due to the limited availability of critical supplies, we
initiated a temporary and orderly shutdown of the
Constancia mine, which lasted eight weeks. During the
shutdown, a reduced on-site crew of employees was
permitted to perform maintenance and related
activities. Thanks to their efforts, we could resume full
production almost immediately after the mine was
reopened. More importantly, over the year, the team at
Constancia did an exceptional job of keeping the mine
employees and nearby communities safe. But while
we kept our operations and on-site employees safe, we
are saddened to report that a passenger in a company
vehicle driven by one of our employees was killed in
a highway accident.
As with Manitoba, the pandemic impacted but did
not define the year at Constancia. We implemented
technical improvements to our processing facilities
that will contribute to increased copper, molybdenum
and gold recoveries. We also completed a drill
program to better understand the northern extension
of the Constancia deposit, and the results have been
incorporated in the March 2021 update of our mineral
resource and reserve estimates.
For the long-term future of Constancia, the most
significant achievement was the progress we made
with community agreements. In February, we
announced a surface rights agreement with the
community of Chilloroya for the Pampacancha
satellite deposit near Constancia, and over the course
of the year we concluded the majority of the
individual land user agreements required to
commence development. Although the pandemic
delayed the required Consulta Previa government
consultation process, this was concluded at the end
of the year. In 2020, we also worked with the
communities of Uchucarcco and Anahuichi toward
securing five-year exploration agreements for the
Caballito, Maria Reyna and Kusiorcco properties, while
advancing our plans for exploration drilling at the
Quehuincha and Llaguen properties.
Arizona Business Unit
Hudbay continues to believe in the potential of the
Rosemont project in Arizona. In 2020, Hudbay and the
United States federal government filed briefs
appealing the unprecedented District Court decision,
which rejected the US Forest Service’s issuance of a
Final Record of Decision for Rosemont. Oral
arguments were completed in February 2021, and
we anticipate a decision later in 2021.
While awaiting a positive outcome of the appeal, we
conducted a drilling program on our wholly owned
private land near Rosemont to test for copper and
other minerals and to better understand the area
where we plan to run power and water lines for the
mine. We also advanced activities at our Mason
project in Nevada with a positive preliminary
economic assessment completed in April 2021, and
we will expand our efforts in the years ahead.
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The Growing Case for Copper
During the first half of 2020, the pandemic-driven
stoppages and slowdowns of construction,
infrastructure development and other projects
worldwide led to a decline in copper prices. Demand,
and consequently price, increased in the second half
of the year. I believe a growing recognition drove
these increases – that copper fundamentals are strong
and getting stronger. Ductile, durable and highly
conductive, copper is essential in producing the
high-capacity wiring needed for computers, smart
devices, wind turbines, solar panels and electric
vehicles; it is a crucial building block of the green
economy. Copper is also naturally antimicrobial,
making copper touch surfaces ideal in combatting
the transmission of disease-causing pathogens. All
of these properties will help drive the demand for
copper beyond the current level of supply. With our
existing mines and enviable project pipeline, Hudbay
is ideally positioned to participate in meeting that
demand, today and in the future.
been in business for close to a century and are among
an increasingly select set of companies with expertise
at every stage of the mining cycle. Our Constancia
mine progressed its tailings management practices to
rise to the “AA” level in the Mining Association of
Canada’s Towards Sustainable Mining program, and
our Mason project activities received a 2020 Nevada
Excellence in Mine Reclamation Award. Applying our
expertise, coupled with the investments made this
year in infrastructure, exploration and expansion, set
us up to deliver strong near-term results and steady
long-term growth.
A Year to Remember.
A Year to Look Forward To.
Confronted by the challenges of unprecedented
demands and obstacles, the resilience and commitment
of Hudbay’s employees made the achievements of
2020 possible. They didn’t just keep our operations
working; they kept them thriving. If I open and close
on the same point, I am unapologetic because I cannot
do enough to acknowledge their efforts. I also want to
thank our Board for their continued support and
guidance in a year that has positioned Hudbay for
a remarkable period of long-term growth.
Sincerely,
Peter Kukielski
President and Chief Executive Officer
Sustainability Performance
Invested in a Bright Future
About This Report
2020 was a year of investment – not only of financial
resources but of effort, time and planning. Early in the
year, we negotiated a gold forward sale and prepay
transaction that provided almost the entire capital
budget for the New Britannia refurbishment at a very
attractive rate. Later in the year, we moved to protect
our balance sheet and improve our liquidity position
by renegotiating our revolving credit facility’s
covenants. We also completed a successful offering
of $600 million in unsecured notes, which enabled us
to redeem $400 million of senior notes, reduce our
interest rate by more than 1% and add six years to
our debt maturity. These steps, combined with our
growing gold revenue and increased prices and
demand for copper, place Hudbay in a solid position
as we move forward into the next decade. We have
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Constancia: Expanding the Resource Base, Improving the Operation
Throughout 2020, while also managing the challenge
of the pandemic, the team at Constancia reached key
agreements with local communities, invested in
technical innovations and upgrades, and drilled the
Constancia north target adjacent to the Constancia pit.
These achievements will help position the mine as the
hub of a multi-generational mining operation.
In February, we secured a surface rights agreement
with the community of Chilloroya. The agreement,
which gives Hudbay access to the Pampacancha
deposit near Constancia, further demonstrates the
strength of Hudbay’s relationships with local
communities. In keeping with International Finance
Corporation standards (PS5 and PS7), we also
conducted individual negotiations with each land
possessor and worked to make sure we made offers
consistent with our framework, and we completed
this process in April 2021. Once it comes on stream,
Pampacancha will add high-grade copper and gold ore
to the Constancia mine plan, lowering future cash
costs and increasing operating cash flows.
In 2011, Peru enacted the Consulta Previa (Prior
Consultation) process, which regulates prior
consultation with Indigenous populations on matters
where their collective rights could be affected. While
these consultations, which also involve Hudbay, are
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time consuming, they contribute to the development
of projects that are sensitive and responsive to local
concerns, which, in turn, contributes to the success
and sustainability of the project over the long term.
COVID-19 delayed the Consulta Previa consultation
process conducted between the communities adjacent
to Pampacancha and the Peruvian government, but it
was completed at the end of 2020, and mining began
in the second quarter of 2021. During 2020, Hudbay
made progress toward establishing exploration
agreements for the properties of Maria Reyna,
Caballito and Kusiorcco and concluded an agreement
to commence drilling at Quehuincha.
Our exploration team completed a successful drill
program, defining the northern extension of the
Constancia deposit (Constancia North) in 2020. The
encouraging results have been integrated into our
2021 update of mineral resource and reserve
estimates. We also pursued a wide range of
production-focused efforts within the mine. Our
efforts included measuring and mapping ore hardness
across defined blocks with Constancia’s orebody,
improving the performance of the mine’s advanced
process control system, and doing early-stage work on
recovery improvement projects and tonnage capacity
increases. Even at this early stage, we have identified
an opportunity to potentially improve copper
recoveries by up to two to three percent.
The common thread that runs through all these
measures and achievements is that they help expand
the resource base available to Constancia’s processing
infrastructure while extending the mine’s viability. At
Constancia, Hudbay is set up to do what we do best:
optimizing a low-cost, long-life mining operation that
will create lasting value for our stakeholders.
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Snow Lake: Expansion to Gold
• using digital solutions from Mobilaris Mining
Intelligence™ to get an unsurpassed real-time look
at mine operations in order to optimize safety
and productivity
• employing X-ray fluorescence spectroscopy to
analyze the makeup of minerals for stockpile
blending and management in order to help
maximize recoveries at the Stall mill
In 2021, we will continue to move our Lalor and Snow
Lake operations toward peak efficiency to get the
best possible return on gold, copper and zinc that we
find in the region. We will also draw upon our proven
skills in finding new resources and extending the mine
life of our operations, so our stakeholders can benefit
from our efforts for many years to come.
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For close to a century, Hudbay Minerals has been
associated with base metals, primarily copper and
zinc. We still identify ourselves as a copper company,
and that metal remains the primary focus of our
operations and our strategy. However, the extensive
gold reserves we have been able to define at our Lalor
mine and other wholly owned properties in the Snow
Lake region are helping Lalor evolve from a zinc
producer to a gold producer.
In 2020, we took several steps that will enable us to
further enhance operational efficiency at Lalor and
improve gold recoveries from Lalor and other Snow
Lake gold deposits. Our most significant progress has
been with respect to refurbishing the New Britannia
mill, which we acquired for $10 million in 2015. By the
end of 2020, refurbishment was 73% complete, and
commissioning is planned for mid-2021, well ahead of
the original schedule. Once it is fully up and running,
New Britannia, combined with the Stall mill, will
provide Lalor with a milling capacity of approximately
5,300 tonnes per day. In turn, this will enable Hudbay
to more than double gold production from Lalor – to
180,000 ounces per year by 2022.
Additionally, a number of continuous improvement
projects have been completed at our Snow Lake
operations that have positioned Lalor and Stall for
record throughputs in 2021; these projects include:
• conducting mine-wide Kaizens to access the
collective insight of Lalor team members in order
to overcome potential bottlenecks and identify
opportunities for introducing best practice in
everything we do
• setting up a state-of-the-art mobile garage facility that
can support a 5,300 tonnes-per-day mining operation
that keeps the fleet running at top efficiency
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Responding to COVID-19: Resilience in Action
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Identifying, adapting to, and overcoming challenges
is an essential characteristic of miners and mining
companies. Early in 2020, Hudbay recognized the
challenge posed by the COVID-19 pandemic,
particularly to its operations in remote locations.
We mounted a coordinated, company-wide response
that enabled us to meet our top priority: keeping
our employees, contractors and communities safe
while still remaining productive and profitable.
In early March, we formally invoked our corporate crisis
management plan in response to the pandemic. The
leadership of Hudbay’s overall business response,
including engagement with financial markets and
coordination with the Board, was taken on by our
Executive Committee, including our CEO, COO and CFO.
Our established corporate and business unit crisis
management teams (including the VP of Corporate
Social Responsibility and the leaders of our business
units) handled the operational response, which included
targeted support and stakeholder communications,
general monitoring and providing information and policy
recommendations to the Executive Committee. This
structure remains in place, and Executive Committee
participants still meet virtually on a regular basis.
Also in March, our offices in Lima, Peru, and Tucson,
Arizona, as well as our Head Office, shut down and
staff moved to working from home. To support their
transition and help them work efficiently, employees
were encouraged to take whatever equipment they
needed to work from home, including computers and
monitors. Thanks to earlier investments in technology
and security across our operations and business unit
offices, we already had networks in place that enabled
employees to securely connect to our network while
working remotely. Throughout 2020, we greatly
increased cybersecurity training for staff, with several
training modules required throughout the year.
By design, Hudbay’s business units operate with a
significant degree of autonomy, and each has its own
pandemic crisis team. The business unit leaders are
accountable for risk assessment, response planning,
employee and local stakeholder communications, and
response management within each business unit.
In Manitoba and Peru, our mines are located in
comparatively remote regions. Many of the employees
come from nearby communities, but the mines also
rely on employees and contractors from outside the
region who travel to and from site for their work
rotations. Mindful of potential impacts on local
communities, both our Manitoba and Peru operations
developed rigorous protocols for testing, quarantining
and workplace conduct in order to prevent the
transmission of COVID-19. As a testament to the
success of their efforts, over the course of 2020 there
were no identified cases of transmission within our
workplaces or transmission between rotational
employees and local communities.
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OUR COMPANY
Hudbay is a diversified mining company primarily producing copper concentrate (containing copper,
gold and silver) and zinc metal. Directly and through its subsidiaries, Hudbay owns three polymetallic
mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan
(Canada) and Chumbivilcas (Peru), and copper projects in Arizona and Nevada (United States). The
Company’s growth strategy is focused on the exploration, development, operation and optimization
of properties it already controls, as well as other mineral assets it may acquire that fit its strategic
criteria. The Company is governed by the Canada Business Corporations Act, and its shares are
listed under the symbol “HBM” on the Toronto Stock Exchange, New York Stock Exchange and
Bolsa de Valores de Lima.
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Saskatchewan
Exploration
Nevada
Mason
Chumbivilcas
Constancia
Pampacancha
Chile
Exploration
Chumbivilcas, Peru
Constancia
• 100% ownership
• Open pit copper/molybdenum mine and concentrator
Pampacancha
• 100% ownership
• Open pit copper/gold mine
Manitoba, Canada
Lalor
• 100% ownership
• Long-life, underground gold/zinc/silver/copper mine
• Stall and Flin Flon concentrators process Lalor base metal ore
• New Britannia mill is being refurbished to process Lalor gold-rich ore
777
• 100% ownership
• Underground copper/zinc/gold/silver mine
• Flin Flon concentrator
• Hydrometallurgical zinc plant
United States
Rosemont project (Arizona)
• 100% ownership
• Open pit copper project
Mason project (Nevada)
• 100% ownership
• Open pit copper project
Exploration properties
• Peru
• Chile
• Arizona, USA
• Nevada, USA
• Manitoba, Canada
• Saskatchewan, Canada
Manitoba
777
Lalor
Arizona
Rosemont
Operations
Development
Exploration
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Vision, Mission, Values
Vision
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We will be a responsible top-tier operator of long-life,
low-cost mines in the Americas.
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Mission
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Our mission is to create sustainable value through the
acquisition, development and operation of high-
quality, long-life deposits with exploration potential in
jurisdictions that support responsible mining, and to
see the regions and communities in which we operate
benefit from our presence.
Values
Dignity & Respect
We treat each other in ways that bring out the very
best in each of us.
Caring
We sustain and contribute to the well-being of people
and the environment in which we operate.
Openness
We speak freely and listen with care about
opportunities, issues and concerns.
Trustworthiness
We can count on each other to do the right thing, and
we follow through on our commitments.
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In 2020, Hudbay ranked seventh among mining
companies in the Globe and Mail’s 2020 Board Games,
the publication’s annual assessment of the
governance quality of Canada’s corporate boards.
Hudbay ranked first among base metal mining
companies and was the only base metal company in
the top 100. Moody’s Investor Services assessed
Hudbay’s overall governance practices at GA-1 – the
highest level of the scoring framework.
See our Management Information Circular to
learn more.
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Corporate Governance
We recognize that strong governance is critical to
Hudbay’s success. It serves as the foundation of our
ability to mitigate risk, protect stakeholders’ interests,
and operate efficiently and effectively.
Hudbay’s Board of Directors is committed to acting in
the best long-term interests of the Company, avoiding
conflicts of interest, and providing timely and accurate
disclosures to shareholders and other key
stakeholders.
Members of our Board are highly qualified individuals
with sound judgment, integrity and strong character,
and have expertise and knowledge useful to the
oversight and safeguarding of the Company’s business.
Hudbay’s Board of Directors’ Diversity Policy states
the Board’s commitment to setting a tone at the top
that leads to greater diversity of gender, viewpoints,
backgrounds, experiences and other demographics
(including representation of Indigenous peoples,
persons with disabilities and visible minorities) on the
Board, as well as on the senior management team and
across the organization.
The Board fulfills its responsibilities directly and through
five committees: Audit; Compensation and Human
Resources; Corporate Governance and Nominating;
Environmental, Health, Safety and Sustainability;
and Technical.
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Board of Directors
As of December 31, 2020, the following were members of Hudbay’s Board of Directors:
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Stephen A. Lang*
Board Chair
Compensation and
Human Resources Committee
Corporate Governance
and Nominating Committee
Technical Committee
Richard Howes*
Compensation and
Human Resources Committee
Technical Committee
Peter Kukielski
President and
Chief Executive Officer
Carol T. Banducci*
Audit Committee (Chair)
Environmental, Health,
Safety and Sustainability
Committee
Sarah B. Kavanagh*
Environmental, Health,
Safety and Sustainability
Committee (Chair)
Corporate Governance
and Nominating Committee
Colin Osborne*
Technical Committee (Chair)
Audit Committee
Igor Gonzales*
Environmental, Health,
Safety and Sustainability
Committee
Technical Committee
Carin S. Knickel*
Compensation and Human
Resources Committee (Chair)
Corporate Governance and
Nominating Committee
* Independent
Daniel Muniz Quintanilla*
Audit Committee
Environmental, Health,
Safety and Sustainability
Committee
David Smith*
Corporate Governance and
Nominating Committee (Chair)
Compensation and Human
Resources Committee
More information on our Board of Directors
Learn more:
• Governance policies, standards, guidelines
and committee charters
• Management Information Circular
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Business Conduct
Our values are reflected in our Code of Business
Conduct and Ethics (the Code of Business Conduct
or the Code), which states the principles of ethical
conduct expected of everyone working on behalf of
Hudbay, its subsidiaries and its affiliates. The Code
of Business Conduct aims to promote a culture of
integrity and accountability; avoid conflicts of
interest; ensure compliance with all applicable laws,
rules and regulations; protect Hudbay’s confidential
and proprietary information, assets, systems and
property; and foster a work environment of respect
and dignity.
Upon joining the Company, all Board members and
employees confirm that they understand and will
comply with the Code. Directors and executive
officers are required to disclose any direct or indirect
conflict of interest to the Board. Every year,
directors, officers, and employees with a Hudbay
email address must annually confirm compliance
with the Code, our Confidentiality and Insider
Trading Policy, our Statement on Anti-Corruption
and our Whistleblower Policy.
Personnel who report concerns about unethical or
illegal behaviour are protected by our Whistleblower
Policy, which expressly prohibits discrimination,
harassment and/or retaliation against anyone
reporting conduct they believe violates our Code
of Business Conduct or any laws.
Hudbay respects diverse political views and the right
for personnel to participate in the political process
as private citizens; however, our Code of Business
Conduct prohibits political contributions made on
Hudbay’s behalf. As a company, Hudbay is nonpartisan
and is committed to engaging with all relevant
government officials regardless of political affiliation.
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Compliance Training
Under our compliance program, which is managed by our legal function, all
employees with a Hudbay email address, as well as members of our Board of
Directors, are provided compliance training on our Code of Business Conduct and
related policies. Training on the Canadian Corruption of Foreign Public Officials Act
(CFPOA) and the US Foreign Corrupt Practices Act (FCPA) is given to all employees
as part of the Code of Business Conduct training and targeted at specific groups
as the Company deems appropriate.
We expanded our 2020 compliance training (which was conducted in early 2021)
beyond policy compliance topics to delve more into the diversity and inclusion
aspects of our Code of Business Conduct. The training aimed to create a dialogue
around how we define diversity and inclusion, and how better to include and
advance marginalized groups within the workplace. The training was mandatory,
and managers were notified of any employees who did not complete the tasks.
Our Peru Business Unit also conducted training targeted at the compliance issues
most relevant to its operating environment.
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Risks, Issues or Complaints
Each year, we identify and assess the bribery and
corruption risks applicable to our business units and
corporate office. These risks continue to be most
significant in Peru due to difficulties in monitoring
compliance among contractors and agents (and,
potentially, employees as the Company grows), along
with increased enforcement of anti-corruption
legislation. Our Code of Business Conduct – supported
by policies, standards and training programs with a
particular emphasis on functions and/or roles that
may pose a higher risk for violating the CFPOA and
FCPA – aims to mitigate this elevated risk. We also
have internal controls in place to detect activities that
might lead to a violation so we can take action before
a significant issue arises.
There were no incidents of corruption reported in
2020, and no accusations of corruption involving
employees, business partners or legal cases were
brought against the Company. Through our third-
party whistleblower reporting service, 15 incidents
were reported in 2020, all of which were investigated
and resolved with corrective action where necessary.
None of these incidents involved significant
allegations of fraud or violations of our Code;
however, some allegations were brought forward
related to business, health, safety and environmental
practices, violations of company policies or
procedures, and potential conflicts of interest.
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Stakeholders may report an issue via one or more of
the following ways:
• Community concerns are addressed through our
grievance process at each project and operating
site. For details about community concerns during
2020, see the Community Relations section of this
report or look for locally available information.
• Our Board of Directors can be contacted by mail or
by email at chair@hudbay.com. As well, the Chair of
Hudbay’s Audit Committee reviews confidential
reports about perceived violations of the Company’s
internal and accounting controls, auditing matters or
violations of the Company’s Code of Business
Conduct or Supplier Code of Conduct through our
whistleblower hotline. Reports are handled under
our Whistleblower Policy, and the Chair of the Audit
Committee is responsible for ensuring that they are
appropriately investigated. Reports can be
submitted by calling +1 877 457-7318 or visiting
www.clearviewconnects.com.
• Canada’s National Contact Point (NCP) for the
Organisation for Economic Co-operation and
Development (OECD) provides a forum where
multinational enterprises, Canadian businesses,
non-governmental organizations and labour
organizations can voice their views and concerns.
The NCP facilitates access to resolution and
mediation procedures to help companies and
communities settle issues. Canada’s NCP can be
reached by email at ncp.pcn@international.gc.ca
or by telephone at +1 343 203-2341.
• The independent Canadian Ombudsperson for
Responsible Enterprise (CORE) investigates human
rights complaints related to Canadian companies
operating overseas. More information about CORE’s
roles and responsibilities and complaint process is
available on its website.
Hudbay 2020 Annual Sustainability Report
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CEO Message
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Risk Management
As a mining company operating and exploring in
multiple jurisdictions, Hudbay’s risks and opportunities
are broad and complex, extending beyond financial
and operational considerations to include geopolitical,
social and environmental matters. Because we
recognize that material sustainability matters
(e.g., climate change, water use and community
conflicts) can impact our operations and financials, our
risk management approach includes identifying and
managing sustainability risks to ensure we achieve our
business objectives.
Sustainability Approach
Our enterprise risk management (ERM) process:
Hudbay executives are responsible for:
• Conducting business in accordance with the risk
appetite set by the Board of Directors
• Integrating risk management into strategic business
planning, budget and resource allocation, operating
performance, and human resources, financial and
compliance processes
• Actively monitoring and managing principal
business risks
Identified risks are assigned to the individuals who
have the most knowledge and experience to
effectively manage and monitor the risk. Each
business unit has a risk register, which is managed
by the vice president of the business unit. Risk
information from each register is aggregated to
identify the high-level risks.
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• Helps identify existing and emerging risks
to our business
• Promotes alignment across the organization
• Embeds effective risk management practices and
tools into our culture, systems and processes
• Maintains processes to consolidate risk assessments
into enterprise-level risk analysis
• Provides assurance to our executives and
relevant committees of the Board of Directors
on its effectiveness
Our Board of Directors provides oversight of our risk
management approach. The Board’s charter states its
responsibility for reviewing the Company’s principal
risks and, with the assistance of the Audit Committee,
implementing policies and overseeing the design of
systems to effectively monitor such risks. Each
Board committee is responsible for monitoring the
critical risks assigned to it by the Board or the Audit
Committee and for periodically reviewing with
management how those risks are being managed
and communicating findings to the full Board.
Hudbay 2020 Annual Sustainability Report
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Precautionary Approach
Our ERM process supports Hudbay’s commitment,
throughout the mine lifecycle, to conduct our
activities under the precautionary approach – a risk
management principle to avoid actions that pose a
hypothetical risk to human health or the environment
when it is within our power to do so and when harm is
scientifically plausible but uncertain.
We use baseline environmental and social impact
studies to evaluate how to avoid, mitigate or control
potentially significant impacts; implement appropriate
monitoring and management systems; and
responsibly conduct land reclamation and mine
closure. In all cases, we solicit stakeholder input. More
information about how Hudbay takes a precautionary
approach to our material sustainability matters is
provided throughout this report.
Emergency Response
and Crisis Management
In the event of a crisis involving the health and safety
of Hudbay’s personnel and/or the Company’s assets,
operations and reputation, each business unit
maintains a crisis management and preparedness
plan. The plans help sites identify potential crises and
develop responses best suited to the local
circumstances. Under Hudbay’s corporate crisis
management plan, a team at the corporate level
provides oversight of the business unit plans and
centrally manages potential enterprise-wide risks such
as cybersecurity and global pandemics. The crisis
management teams at the business unit and
corporate level conduct regular training and exercises
to maintain a state of readiness.
In January 2020, we began monitoring the outbreak
of COVID-19 cases in China, and by early March we
activated crisis management plans in the business
units and at the corporate level once the spread of
the virus reached pandemic levels. We highlight the
actions we took to, first and foremost, keep
personnel and community members safe and
minimize operational impacts to the greatest extent
possible in the Responding to COVID-19: Resilience
in Action case study.
Hudbay’s long-term and emerging risks and their
potential business impacts are detailed in the Risk
Factors section of our Annual Information Form.
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CEO Message
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Management Team
Hudbay’s skilled and experienced management team leads the Company’s efforts to set long-range
goals, deliver growth, manage costs, operate safely and responsibly, and invest in the future.
As of December 31, 2020, the following were members of Hudbay’s management team:
Peter Kukielski
President and
Chief Executive Officer
Eugene Lei
Senior Vice President,
Corporate Development
and Strategy
Robert Assabgui
Vice President,
Manitoba Business Unit
Patrick Donnelly
Vice President
and General Counsel
Andre Lauzon
Vice President,
Arizona Business Unit
Steve Douglas
Senior Vice President
and Chief Financial Officer
Cashel Meagher
Senior Vice President
and Chief Operating Officer
Peter Adamek
Vice President, Finance
Peter Amelunxen
Vice President,
Technical Services
David Clarry
Vice President,
Corporate Social Responsibility
Javier Del Rio
Vice President,
South America Business Unit
Jon Douglas
Vice President
and Treasurer
Elizabeth Gitajn
Vice President,
Risk Management
Olivier Tavchandjian
Vice President,
Exploration and Geology
Learn more:
• Management team biographies
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BUSINESS
AND FINANCIAL
REVIEW
2020 was an unprecedented year,
but Hudbay still achieved its revised
production and operating cost targets,
maintaining a record of strong operating
and financial performance. At the
same time, we were able to make
several key investments to drive future
production growth.
Our operations in Peru demonstrated exceptional
perseverance in the face of the pandemic. The team
successfully completed the Consulta Previa process
for Pampacancha and received the final permit
required to begin the mine’s development and
operation. Pre-development activities commenced in
January 2021, and pre-stripping activities commenced
in April 2021 after completion of the final individual
land user agreements. Additionally, our exploration
team completed a drilling program to define the
northern extension of the Constancia deposit, and
we have incorporated the results into our 2021
update of mineral resource and reserve estimates.
Our Manitoba operations showed strength and
resilience in successfully managing the challenges
of COVID-19 and in quickly remedying the 777 skip
hoist incident. The team confirmed the potential
for increasing Lalor’s long-term production rate and
made rapid progress in refurbishing the New Britannia
mill, which is on track for its first gold pour in the
summer of 2021.
Looking ahead, we anticipate 2021 to be a year
of further investment, building on the investments
we made in 2020. We also expect to begin seeing
the benefits as we grow production through
Pampacancha and New Britannia. We have committed
$40 million to exploration, and will conduct an
expanded program that includes targeted drilling
of promising sites in Arizona, Peru and Snow Lake.
Hudbay 2020 Annual Sustainability Report
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Key Accomplishments
2020 Operations and Financial Summary
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• Achieved 2020 production and unit cost guidance in
Peru and Manitoba; Manitoba copper production
exceeded the top end of the guidance range, and
refined zinc metal production was higher than it has
been in over 10 years.
• Constancia’s copper production was within the revised
guidance range, and the Pampacancha satellite deposit
was significantly advanced with the signing of the
community surface rights agreement in February and
the subsequent completion of the Consulta Previa
consultation process.
• The Lalor mine and Stall concentrator both achieved
record quarterly and annual production because
employees and equipment from our 777 mine were
redeployed to Lalor during the 777 shaft repair period.
• Full production resumed at the 777 mine on November 25
following a skip hoist incident in early October; shaft
repair activities were completed well ahead of schedule
and below expected costs.
• Manitoba annual gold sales volumes increased by 24% in
2020 compared to the prior year.
• Cash and cash equivalents of $439.1 million as at
December 31, 2020 show that the Company is well
placed to capitalize on the investments it made over the
year and to deliver growing returns in the future.
Operations Summary
For the years ended December 31
Production (contained metal in concentrate)1,2
Copper (000 tonnes)
Gold (000 ounces)
Silver (000 ounces)
Zinc (000 tonnes)
Molybdenum (000 tonnes)
2020
95.3
124.6
2,750.8
118.1
1.2
2019
137.2
114.7
3,585.3
119.1
1.3
1 Metal reported in concentrate is prior to refining losses or deductions associated with smelter contract terms.
2 2020 copper production was impacted by the government of Peru’s mandated eight-week shutdown of the Constancia mine at the outset of the pandemic.
Financial Summary
Financial Condition (in $000s)
Cash and cash equivalents
Working capital
Total assets
Total long-term debt
Equity
Dec. 31, 2020
Dec. 31, 2019
$ 439,135
$ 396,146
306,888
4,666,645
1,135,675
1,699,806
271,284
4,461,057
985,255
1,848,123
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Financial Performance
(in $000s, except per share and cash cost amounts)
Revenue
Profit before tax
Basic and diluted earnings (loss) per share
Profit (loss)
Operating cash flows before change in non-cash working capital
Production
Contained metal in concentrate1
Copper (tonnes)
Gold (ounces)
Silver (ounces)
Zinc (tonnes)
Molybdenum (tonnes)
Metal sold
Payable in metal in concentrate1,2
Copper (tonnes)
Gold (ounces)
Silver (ounces)
Refined zinc (tonnes)
Molybdenum (tonnes)
Dec. 31, 2020
Dec. 31, 2019
$ 1,092,418
$ 1,237,439
(179,089)
(0.55)
(144,584)
241,863
95,333
124,622
(452,763)
(1.32)
(343,810)
307,284
137,179
114,692
2,750,873
3,585,330
118,130
1,204
88,888
122,949
119,106
1,272
128,519
108,999
2,585,586
3,452,926
109,347
1,321
104,319
1,186
1 Metal reported in concentrate is prior to deductions associated with smelter contract terms.
2 2020 copper production was impacted by the government of Peru’s mandated eight-week shutdown of the Constancia mine at the outset of the pandemic.
Hudbay 2020 Annual Sustainability Report
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CEO Message
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Strategy
Our mission is to create sustainable value through the
acquisition, development and operation of high-
quality, long-life deposits with exploration potential in
jurisdictions that support responsible mining, and to
see the regions and communities in which we operate
benefit from our presence.
social risk. Given our current scale and geographic
footprint, our current geographic focus is on select
investment-grade countries in the Americas, with
strong rule of law and respect for human rights
consistent with our longstanding focus on
environmental, social and governance (ESG) principles.
Quality: We are focused on adding long-life, low-cost
assets to our existing portfolio of high-quality assets.
Long-life assets can capture peak pricing of multiple
commodity price cycles, and low-cost assets can
generate free cash flow even through the trough of
price cycles.
Commodity: Among the metals we produce, we
believe copper has the best long-term supply/demand
fundamentals and the greatest opportunities for
sustained risk-adjusted returns. While our primary
focus is on copper, we appreciate the polymetallic
nature of deposits and, in particular, the counter-
cyclical nature of gold production in our portfolio.
Potential: We consider the full spectrum of acquisition
and investment opportunities from early-stage
exploration to producing assets, but they must meet
our stringent risk-adjusted criteria for growth and value
creation. Regardless of the stage of development, we
look for mineral assets that we believe offer significant
incremental potential for exploration, development and
optimization beyond the stated resources and mine plan.
We believe that the greatest opportunities for
shareholder value creation in the mining industry are
in the discovery and development of new mineral
deposits, and through highly efficient low-cost
operations that profitably extract ore from those
deposits. We also believe that our successful
development, ramp-up and operation of the
Constancia open pit mine in Peru, along with our long
history of underground mining and full lifecycle
experience in northern Manitoba, provide us with a
competitive advantage in these respects relative to
similar-sized peers.
Hudbay has built a world-class asset base by employing
a consistent long-term growth strategy. We aim to
sustainably grow Hudbay through exploration and
development of our enviable project pipeline, as well
as through the acquisition of other properties that fit
our stringent strategic criteria. Furthermore, we
continuously work to generate strong free cash flow
and to optimize the value of our producing asset
portfolio through exploration, brownfield expansion
projects, and efficient and safe operations.
To ensure that any capital allocation or acquisition we
undertake creates sustainable value for stakeholders, we
have established several criteria for evaluating mineral
property opportunities. These include the following:
Geography: Potential acquisitions should be located
in jurisdictions that support responsible mining
activity and have acceptable levels of political and
Hudbay 2020 Annual Sustainability Report
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Financial and Business Objectives for 2021
Moving ahead in 2021, we intend to:
• Focus on operational efficiencies and maintain
our low costs of production to continue to
generate positive cash flow and strong returns
on invested capital
• Execute development and commence mining
activities at the Pampacancha satellite deposit,
further enhancing Constancia’s production and
cost profile
• Deliver the refurbishment of the New Britannia
gold mill to significantly increase gold production
from Lalor, completing the second phase of the
Snow Lake gold strategy
• Advance the appeals process and alternative
options to unlock value at Rosemont
• Progress the third phase of our Snow Lake gold
strategy to further increase annual production scale
by advancing studies to optimize recoveries,
throughput, resource conversion and exploration
• Maintain Constancia’s industry-leading efficiency
metrics by identifying areas of upside through
continuous improvement initiatives at the mill and
ongoing near-mine exploration
• Drill regional copper exploration targets near
Constancia, in northern Peru and near Rosemont
while continuing to advance exploration programs
in the Snow Lake region, Peru and Nevada
• Support our workforce, their families and the
communities in which we operate by continuing to
make health and safety a priority and providing
ongoing COVID-19 support
• Evaluate exploration, organic growth and
acquisition opportunities that meet our stringent
strategic criteria and allocate capital to pursue
those opportunities that create sustainable value
for the Company and our stakeholders
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Permitting and Sustainability Context: We evaluate
the legal, environmental and eco-efficiency context
of acquisitions and major investments. Behind our
financial analysis, we assess risks and opportunities
related to the criteria and clarity of processes for
obtaining formal permissions; the compatibility
between mining activities and sensitivities of local
environments; technical efficiencies along key
parameters of energy, water and waste management;
and structure of energy supply.
Process: Through a robust due diligence and capital
allocation process, we develop a clear understanding
of how we can create value from the investment or
the acquired property through the application of our
technical, social, operational and project execution
expertise, as well as through the provision of
necessary financial capacity and other operational
optimization opportunities.
Operatorship: We believe real value is created through
leading efficient project development and operations.
Hudbay’s leadership team is well positioned to
drive value and to deliver effective capital allocation
with our proven track record of successful project
development and operational excellence.
Financial: Investments and acquisitions should be
accretive to Hudbay on a per share basis. Given that
our strategic focus includes capital allocation to
non-producing assets at various stages of
development, when evaluating accretion we will
consider measures such as internal rate of return
(IRR), return on invested capital (ROIC), net asset value
per share and the contained value of reserves and
resources per share.
Hudbay 2020 Annual Sustainability Report
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Business Activities
Over the course of 2020, we delivered strong operating
performance in a challenging year. On a consolidated
basis, our copper, zinc and precious metals production
met revised 2020 guidance ranges. In Manitoba, copper
production exceeded the top end of the guidance
range; in Peru, copper production was within our
revised guidance range. Combined unit costs in
Manitoba and Peru were within guidance. Still, total
capital expenditures were above 2020 guidance, largely
due to costs associated with individual land user
agreements in Peru that, due to the ongoing nature of
the negotiations, as previously disclosed, were not part
of the initial growth capital guidance for the Company.
In Manitoba, the New Britannia mill’s refurbishment
proceeded ahead of schedule, with work 73% finished
by the year’s end. At Constancia, the Consulta Previa
process was completed for Pampacancha, and we
received final permits for development and mining.
• Across Hudbay, Company produced 95,333 tonnes
of copper in concentrate, 118,130 tonnes of
zinc in concentrate and 124,622 ounces of gold
in concentrate
• Achieved unit operating cost guidance in both
Manitoba and Peru, resulting in a consolidated cash
cost per pound of copper produced of $0.60 and an
all-in sustaining cost of $2.16 per pound1
• Maintained our strong sustainability performance
• Advanced several near-term growth initiatives
1 All-in sustaining cash cost per pound of copper produced, net of byproduct credits, is a non-IFRS financial performance measure with no standardized definition under IFRS. For further
information and a detailed reconciliation, please see the discussion under “Non-IFRS Financial Performance Measures” beginning on page 53 of Hudbay’s Management’s Discussion
and Analysis filed February 18, 2021.
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Manitoba Business Unit
• Achieved record annual production at Lalor and Stall
• Announced phase two of the Snow Lake
CEO Message
gold strategy
• Advanced exploration on Quehuincha North
and Llaguen targets
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• 35% increase in gold reserves
• 41% increase in life of mine gold production at Lalor
• Average annual gold production increased to over
150,000 ounces at first quartile cash costs; recent
2021 mine plan estimated a further increase to gold
production to over 180,000 ounces annually
• Fully funded the New Britannia investment
through gold prepay and advanced project
to 73% completion
• Identified early gold opportunity at New Britannia
• Upgraded the 1901 base metal resource estimate
Corporate
and defined initial gold resource
• 777 shaft production interruption in Q4
• Identified opportunity to achieve higher production
rates at Lalor beyond 4,500 tonnes per day
• Initiated work on the Stall recovery
improvement program
• Completed the Consulta Previa process
for Pampacancha
• Received the final mining permit for the
development and operation of Pampacancha
Arizona Business Unit
• Advanced Rosemont federal permits
appeals process
• Initiated exploration drilling program on lands
near Rosemont
• Consolidated land near Mason and advanced
preliminary economic studies
• Safely and efficiently implemented and adapted to
COVID-19 protocols in all operations
• Solidified our management team, confirming Peter
Kukielski as our permanent CEO and adding an
experienced mining company CFO in Steve Douglas
• Completed the refinancing of $400 million of 2023
bonds through the issuance of $600 million 2029
bonds, and in early 2021 completed the refinancing
of $600 million of 2025 bonds to significantly
reduce the annual interest costs
• Signed the BlackNorth CEO Pledge, a key
affirmation of the Company’s commitment to
diversity and inclusion
In 2020, Hudbay again achieved our revised production
and unit cost guidance in Manitoba and Peru. Copper
production in Manitoba exceeded the top end of our
guidance range, and refined zinc metal was higher
than it has been in more than 10 years. We were also
able to capitalize on higher gold prices, as Manitoba’s
annual gold sales volumes increased by 24% in 2020
compared to the previous year. Hudbay’s full-year
revenue for 2020 was $1,092.4 million, $145 million
lower than 2019 due to lower copper sales volumes
that were only partly offset by higher realized sales
prices for copper and precious metals. The all-in
sustaining cash cost per pound of copper produced,
net of byproduct credits, was $2.16, an increase from
$1.86 in 20191. The increase was mainly driven by
increased cash-sustaining capital expenditures and
lower copper production year-over-year.
1 All-in sustaining cash cost per pound of copper produced, net of byproduct credits, is a
non-IFRS financial performance measure with no standardized definition under IFRS.
For further information and a detailed reconciliation, please see the discussion under
“Non-IFRS Financial Performance Measures” beginning on page 53 of Hudbay’s
Management’s Discussion and Analysis filed February 18, 2021.
Consolidated Financial Statements
Management’s Discussion and Analysis
About This Report
Peru Business Unit
• Signed community agreement for Pampacancha
surface rights
• Eight-week production interruption at onset
of the pandemic due to government-mandated
civil shutdown
• Encouraging Constancia North drill results showed
potential for pit extension
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SUSTAINABILITY
APPROACH
Hudbay believes that continuously improving how we
manage the social, environmental and economic risks,
impacts and opportunities associated with our activities
is critical for our long-term success. Our focus on
sustainability helps us meet stakeholder expectations,
benefit from positive developments and navigate
challenging circumstances.
HIGHLIGHTS
$45.3 million spent on local procurement
$5.3 million
in community investments
and charitable donations
17%
reduction in lost time severity
Hudbay 2020 Annual Sustainability Report
| Sustainability Approach
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Strengthening Tailings Facilities in Manitoba
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Our Flin Flon Tailings Impoundment System (FFTIS)
in Manitoba, which has been in service for more than
90 years, holds around 100 million tonnes of tailings.
Recent tailings storage facility (TSF) failures around the
world have accelerated efforts throughout the mining
industry to improve the safety of these structures.
In 2019, Hudbay initiated a multi-year, C$80 million
dam investment project, divided into annual
expenditures of $20 million, to improve our facilities’
factor of safety (FOS) – a metric used by engineers to
measure a structure’s robustness against unexpected
events. The project incorporated recommendations
from Hudbay’s engineer of record (EOR), which
reflected the EOR’s re-examination of Hudbay’s TSFs
in light of higher industry standards and learnings
from recent TSF failures at other mining operations.
The project is expected to be completed in 2022.
The first phase focused on protecting people. The
town of Creighton, Saskatchewan, resides on the
south side of the FFTIS. Based on an analysis of
impacts from a hypothetical dam failure, our top
priority was to construct control berms that would
redirect the flow of slurry and water away from
residential and other public areas should there be an
unlikely trigger event causing a dam failure and an
uncontained release of tailings.
Community members and other local stakeholders
were kept apprised of the dam stabilization work. In
mid-2020, Hudbay held an open house that followed
strict COVID-19 safety protocols, in which participants
were able to ask questions of Hudbay’s EOR and
members of the tailings management team.
Once we completed the berm construction, which
greatly reduced the risk rating for impacts to the
public, we were able to take the next step. Phase two
of the project focused on areas with a higher risk
rating for impacts to the public, the environment and
our operations. This work included stabilizing areas
near the Hanson Lake highway and along the south
perimeter of the FFTIS. At the end of 2020, both
phase one and phase two construction activities were
complete, and phase three work was initiated.
Phase three projects will complete the legacy
upgrades and bring all of the dams in the FFTIS up to
the required FOS, based on an analysis of the
Canadian Dam Association’s criteria. Two of these
projects are expected to be completed in 2021, with
the three remaining structures completed in 2022.
Our Flin Flon Tailings
Impoundment System (FFTIS)
in Manitoba, which has been in
service for more than 90 years,
holds around 100 million
tonnes of tailings. Recent
tailings storage facility (TSF)
failures around the world have
accelerated efforts throughout
the mining industry to improve
the safety of these structures.
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Hudbay Aligns with
New Sustainability
Reporting Frameworks
Hudbay has long believed that transparently disclosing
our sustainability performance is good business and
essential to earning and maintaining stakeholder trust.
For several years, Hudbay has published its
environmental, social and governance (ESG)
disclosures in accordance with the Global Reporting
Initiative (GRI) guidelines and standards. We have also
participated in CDP’s annual questionnaires on our
greenhouse gas (GHG) emissions, water management
practices and forest-related risks and opportunities.
For many years, the GRI and CDP have been considered
two of the most credible sustainability reporting
frameworks – and have been the most widely adopted.
However, two other frameworks have recently
emerged that reflect how sustainability reporting is
evolving to include issues of interest to investors. The
Sustainability Accounting Standards Board (SASB)
created a standardized methodology for reporting
sustainability information that is material to investors
and that allows stakeholders to compare peer
performance within an industry. The Task Force on
Climate-related Financial Disclosures (TCFD) framework
seeks to provide stakeholders in the financial markets
(e.g., investors, lenders, insurers and regulators)
climate-related information useful to decision-making.
As investor interest in ESG matters (from climate
change to the strength of community relationships)
increases, SASB and TCFD are emerging as equally
credible standards and frameworks to GRI. As a result,
our 2020 Annual Sustainability Report disclosures
were mapped to the GRI, the SASB Metals & Mining
industry standard and the TCFD.
Because the multiple frameworks may have an
unintended result of creating complexity and
becoming onerous, there are several efforts underway
to converge the various sustainability reporting
standards into a single reporting framework. We are
monitoring these developments as we continuously
improve our reporting disclosures and transparency
on our performance.
Hudbay has long believed that
transparently disclosing our
sustainability performance is
good business and essential
to earning and maintaining
stakeholder trust.
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Sustainability Governance
Sustainability Management Framework
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Sustainability is embedded into Hudbay’s overall
management approach, and governance of
sustainability starts at the Board level.
Hudbay’s Environmental, Health, Safety and
Sustainability (EHSS) Committee represents the Board
in providing detailed oversight of the Company’s
human rights, social, environmental, health and safety
policies, programs and systems. The Committee meets
quarterly to review the Company’s performance and
management of key EHSS risks. The Committee also
tracks the effectiveness of Hudbay’s management
systems through the external ISO 14001 and 45001
certification and TSM performance assessment
processes. Our Vice President, Corporate Social
Responsibility has responsibility for the Company’s
overall sustainability governance processes, while
business unit and operations leaders are responsible
for achieving and maintaining sustainable operations.
Each operation has specialist personnel who are
dedicated to the day-to-day management of health,
safety, environmental, community relations and other
social and human rights matters.
BOARD OF DIRECTORS
EHSS
COMMITTEE
AUDIT
COMMITTEE
CEO
COO
CFO
VPs
OPERATIONS
& PROJECTS
VP CSR
VP RISK
MANAGEMENT
Allocation of resources
and oversight to ensure
responsible operations
Systems, support,
and internal assurance
for environment,
health & safety and
social performance
Systems, support,
and internal assurance
for financial and
regulatory compliance
VP & GENERAL
COUNSEL
Systems, support, and
internal assurance for
Code of Business Conduct
Our Sustainability Management Framework details
commitments, requirements and accountabilities for
sustainability matters throughout the organization.
Hudbay’s Code of Business Conduct, Human Rights
Policy, Environmental Health and Safety Policy and
Supplier Code of Conduct state our social,
environmental and ethical commitments across our
business, including our supply chain.
Hudbay’s ability to achieve our business objectives is
supported by the policies, processes and procedures
that make up our management systems across all our
functions. Each operation must have a formal
management system supporting sustainability
performance. The health and safety management
system and environmental management system
components must be certified to the International
Organization for Standardization’s (ISO) 14001
and 45001 standards. In 2018, ISO 45001 replaced
OHSAS 18001 as the accepted standard for safety
management systems, and in 2020 our Manitoba and
Peru business units were both certified to the enhanced
ISO 45001 standard. The business units also maintained
ISO 14001 certification throughout the year.
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Each business unit sets objectives, identifies risks and
provides assurance to leadership and the Board that
EHSS matters are being managed appropriately.
Supporting these efforts is an integrated software
system – called Intelex – that tracks health, safety and
environmental incidents and investigations; captures
certain stakeholder engagement activities and
commitments; and documents corrective actions at
the sites. Our Arizona and Manitoba business units also
use the system to support permitting requirements.
As a member of the Mining Association of Canada
(MAC), Hudbay participates in its Towards Sustainable
Mining (TSM) program. Launched in 2004 to improve
the industry’s performance and help Canadian
companies evaluate and manage key environmental
and social risks, TSM was the first sustainability standard
in the mining industry to require site-level assessments.
Increasingly, the TSM program is being recognized
as global best practice in sustainable and responsible
mining. Today, mining associations in eight other
countries – Argentina, Australia, Botswana, Brazil,
Finland, Norway, the Philippines and Spain – have
adopted the program and other countries are
considering its adoption. MAC is developing an
equivalency map that defines how the TSM standards
align with emerging performance frameworks,
including the World Gold Council’s Responsible Gold
Mining Principles (RGMPs) and the Copper Mark.
The TSM program is based on guiding principles and
supported by a set of tools and performance indicators
to ensure key mining risks are effectively managed. Our
participation in TSM supports Hudbay’s accountability,
transparency and credibility through the evaluation and
public reporting of our performance across the
following protocols and frameworks:
• Indigenous and Community Relationships
• Energy and GHG Emissions Management
• Tailings Management
• Biodiversity Conservation Management
• Safety and Health
International Systems and
Performance Standards
To inform our sustainability programs and improve our
performance, we apply the following international
best practice standards and voluntarily support and/or
participate in several disclosure frameworks.
International systems
• ISO 14001 environmental management standard
• ISO 45001 occupational health and safety
management systems standard
• ISO 9001 quality management systems standard for
• Crisis Management and Communications Planning
the production and supply of cast zinc products
• Water Stewardship
• Preventing Child and Forced Labour
• Mine Closure Framework
Among the key features of TSM are:
• Measuring performance primarily at the facility level
• Externally verifying and publicly reporting results as
• Towards Sustainable Mining – the Mining
Association of Canada’s set of tools and indicators
to drive performance and ensure key mining risks
are managed responsibly
• Voluntary Principles on Security and Human
Rights – an operating framework that ensures
security practices include respect for human rights
they are submitted on the MAC website
• IFC Performance Standards – the International
Finance Corporation (IFC), part of the World Bank
Group, is the largest global development institution
focused exclusively on the private sector in
developing countries. Hudbay follows the IFC’s
Performance Standards on Environmental and
Social Sustainability at our Constancia site in Peru.
• Monitoring the program’s implementation via an
external Community of Interest Advisory Panel that
provides an independent perspective on the
appropriateness of TSM standards and reviews
evidence of member commitment
• Encouraging and supporting continual performance
improvement
The TSM protocols and frameworks are incorporated
into our overall management systems and company
standards. Although we are only required to
implement the program at our Canadian operations,
we have committed to implementing the program at
all of our operations. The goal is for each facility to
achieve a minimum of Level A – which is considered
good performance and demonstrates that
commitments and accountabilities are in place and
consistent with the protocol – in all performance areas.
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International reporting standards
Industry Involvement
• Global Reporting Initiative (GRI) – an independent,
international organization that provides the world’s
most widely used standards for sustainability
reporting: the GRI Standards
• CDP (formerly called the Carbon Disclosure Project) –
the non-profit that runs the global disclosure
system for thousands of organizations to manage
environmental matters such as greenhouse gas
emissions, water use and climate change strategies
• Sustainability Accounting Standards Board (SASB) –
an independent non-profit organization that aims to
improve industry-specific standards for the
disclosure of financially material sustainability
information. Hudbay has mapped its 2020 Annual
Sustainability Report to the SASB Metals & Mining
Standard.
• Task Force on Climate-related Financial
Disclosures (TCFD) – an organization established by
the Financial Stability Board to improve the
reporting of climate-related risks and opportunities
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Hudbay participates in industry associations and
multi-stakeholder groups through membership,
funding, sharing of expertise, and participation in
committees and working groups. Memberships
include the following:
• Aboriginal Chamber of Commerce (Manitoba)
• Alianza para Obras por Impuestos – ALOXI
• American Exploration and Mining Association
• Arizona Mining Association
• Arizona Small Business Association
• Arizona Trail Association
• Several Arizona Chambers of Commerce – Benson
San Pedro Valley, Greater Oro Valley, Greater Vail
Area, Green Valley/Sahuarita, Marana, Nogales–
Santa Cruz, Sierra Vista Area, Tucson Hispanic,
Tucson Metro
• Asociación Vida Perú (a non-profit organization that
donates medical equipment and medicines)
• BlackNorth Initiative
• Business for Social Responsibility (BSR) (a non-profit
business network and consultancy dedicated to
sustainability)
• Cámara de Comercio Canadá Perú
• Canadian Council for Aboriginal Business
• Canadian Institute of Mining, Metallurgy and
Petroleum and relevant societies
• Catalyst Accord 2022 and the 30% Club
• Centro Peruano de Promoción del Cobre – Procobre
• Coalition for Energy Efficient Comminution (CEEC) –
an international, not-for-profit, registered charity
committed to sharing energy-efficient mining and
mineral processing solutions
• Confederación Nacional de Instituciones
Empresariales Privadas, CONFIEP (National
Confederation of Private Business Institutions in Peru)
• Cusco Chamber of Commerce
• Devonshire Initiative (a Canadian forum for leading
international development, NGOs and mining
companies to engage on mining and community
development issues)
• Empresarios por la Educación (a Peruvian private
sector organization to promote and develop
educational projects)
• Extractive Industries Transparency Initiative – EITI Peru
• Flin Flon and District Chamber of Commerce
• Grupo de Diálogo, Minería y Desarrollo Sostenible
(multi-stakeholder group promoting open and
transparent dialogue on mining, environmental
protection and sustainable development in Peru)
• International Zinc Association
• Manitoba Employers Council
• Metropolitan Pima Alliance
• Mining Association of Canada
• Mining Association of Manitoba Inc.
• Mining Foundation of the Southwest (US)
• Mining Safety Round Table (a collaborative group of
safety-committed mining companies that share
experiences and identify best practices)
• National Mining Association (US)
• Saskatchewan Mining Association
• Snow Lake Chamber of Commerce
• Sociedad Geológica del Perú – SGP (Peruvian
geological association)
• Sociedad Nacional de Minería, Petróleo y Energía –
SNMPE (Peruvian Mining Society)
• Southeast Arizona Economic Development Group
• Southeastern Arizona Contractors Association
• Southern Arizona Business Coalition
• WAAIME (the Women’s Auxiliary to the American
Institute of Mining, Metallurgical, and Petroleum
Engineers – Peruvian Section)
• Women in Mining Peru – WiM PERU
• Women in Mining Toronto – WiM Toronto
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Human Rights and Security
Reflected in our values is respect for the rights of the
people who work on our behalf and those who live in
the communities near our operations. Our Human Rights
Policy explicitly states our support for the principles of
the Universal Declaration of Human Rights, and both
the policy and our Code of Business Conduct affirm our
commitment to respecting human rights through our
business activities and practices.
We respect the dignity of all people, along with their
culture, customs and values. Our fair labour practices
include zero tolerance for forced, compulsory and
child labour, and we work to prevent any infringement
upon human rights within our sphere of influence.
The UN Guiding Principles on Business and Human
Rights are a blueprint for businesses to respect
human rights and include a public commitment, a due
diligence process that assesses risks, and a method for
providing a remedy to anyone who is impacted.
Following these principles, in 2018 and 2019 we
developed a framework and guidance materials to
identify and mitigate social, security and human rights
risks and to better integrate these considerations into
our enterprise risk management program. The
framework is anchored in the principle that respecting
human rights is foundational to managing social risks
and opportunities. Key objectives of the guidance
include ensuring our security practices are informed
by a thorough understanding of community concerns,
that we reduce risks by mitigating our impacts and
improving our engagement with communities, as well
as improving our awareness of potential community
dynamics that may pose a risk to Hudbay personnel
and assets. This approach emphasizes ongoing
assessments of community situations and Hudbay’s
activities that may impact individual and community
well-being. While the framework does not prescribe a
uniform process across our diverse locations, it does
provide a consistent structure and expectation for the
scope and structure of this area of risk management.
Concerns about human rights issues within our
business can be reported via one or more of the
options discussed in the Risks, Issues or Complaints
section. In 2020, there were no human rights issues
raised or reported through our Board, hotline, site
grievance mechanisms or external agencies. However,
in April, a Peruvian organization claimed there was a
COVID-19 outbreak among workers at our Constancia
mine in Peru, and that the Company had put
community members at risk. Hudbay reviewed these
claims and concluded that they were a
misinterpretation of testing results – some “non-
negative” antigen tests were subsequently confirmed
to be negative by PCR tests, and incoming workers
who tested positive were reported as being at the
mine camp when, in fact, they were in quarantine in
Cusco and had not been on-site. We are confident that
our practices (which we discuss in the Responding to
COVID-19: Resilience in Action case study) are
designed to protect the health and safety of
personnel working on Hudbay’s behalf. The
organization did not pursue the matter any further.
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Security Practices
Our Security Policy and Corporate Plan expands on
the commitments in our Human Rights Policy and
details how we assess risks and maintain appropriate
oversight of business unit activities to respect human
rights in local communities while providing a secure
work environment and protecting our employees,
contractors and physical assets. This policy and plan
recognizes the importance of measured and
appropriate responses to security threats in reducing
conflicts and building relationships with communities
and other stakeholders.
The Security Policy and Plan includes high-level risk
assessments to rank the security risk level of each
operation, and we develop detailed risk assessments
at each location to define specific actions. Corporate
activities at each risk level include:
• Low risk – an annual review of the corporate risk
assessment and an annual advisory site visit; a local
social risk assessment; training security
management on the Voluntary Principles on
Security and Human Rights (VPs); and raising
awareness of the VPs with contracted private and
public security personnel
• Medium risk – at least an annual audit of site
security practices using the Global Compact Canada
VP framework, and at least one annual advisory
visit; a structured program at the site, including
training of security personnel, to implement the
VPs; a grievance mechanism to record and respond
to security complaints; and active participation in
forums that promote security and human rights
• High risk – an annual audit by an independent
Voluntary Principles Organization (VPO)-recognized
auditor; a grievance mechanism to record and
respond to security complaints; and engagement
with national and international organizations on
security practices
In 2020, we suspended in-person advisory site visits
due to COVID-19. We plan to return to the site visits
when travel restrictions are lifted and protocols allow
for the visits to be safely conducted.
Currently, all our operating and exploration sites are
considered low risk except for Constancia in Peru,
which is classified as a medium risk. Although the
country has relatively strong institutions and
government policies, the country’s history of social
unrest represents an elevated risk and requires more
rigorous risk evaluation and risk management.
The operations, projects and exploration sites where
we employ security personnel follow the VPs, which
aim to minimize security-related impacts on
communities and to align corporate security practices
with internationally recognized human rights
principles. All contracts between Hudbay and security
services include a requirement to work within the VP
framework as well as the UN Code of Conduct for
Law Enforcement Officials and the UN Basic
Principles on the Use of Force and Firearms by Law
Enforcement Officials. Although governments have
the primary responsibility for maintaining law and
order, whenever we rely on public security providers
the VPs require Hudbay to demonstrate our
expectation that the actions of these providers are
consistent with the protection of human rights.
Guatemala Civil Lawsuits
Hudbay is named in three civil lawsuits relating to
alleged events prior to 2010 in Guatemala, where the
Company owned a controlling interest in Compañía
Guatemalteca de Níquel (CGN). Information about the
litigation is posted on our website.
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Tailings Stewardship
Mine tailings are the fine-grained material that
remains after the process of separating the minerals
from the crushed ore. Tailings can be a paste or a
slurry of fine particles and water and are contained in
engineered tailings storage facilities (TSFs) that are
designed to safely store the waste.
Although the risk of an uncontained release of tailings
is remote when TSFs are properly designed, built,
operated and maintained, should one occur, it not
only poses an environmental risk, but there are also
potentially catastrophic consequences.
The continuous improvement and safe management
of TSFs is an industry-wide priority, and several
industry initiatives have been, and are being,
implemented to strengthen tailings management.
Tailings Management Protocol
As a member of MAC, we implement TSM’s Tailings
Management Protocol, which was enhanced in 2019.
In 2020, a new tailings standard was released, titled
the Global Tailings Standard (GTS), which was
developed through a collaboration between the
International Council on Mining and Metals and
several investor and civil society groups. There is
substantial alignment between the GTS and TSM,
particularly when combined with the Canadian Dam
Safety Guidelines, and given the existing degree of
implementation of TSM. There is currently an
acceptance that companies are demonstrating an
equally robust commitment to the GTS if they are
maintaining Level A or higher in the TSM protocols
and ensuring that TSFs are constructed following the
Canadian Dam Safety Guidelines. The TSM protocol’s
five performance indicators measure the
implementation level of the following practices:
1. Tailings management policy and commitment
2. Tailings management system and emergency
preparedness
3. Assigned accountability and responsibility
for tailings management
4. Annual tailings management review
5. Operation, maintenance and surveillance
(OMS) manual
Because community engagement is an important
aspect of responsible tailings management, the TSM
Indigenous and Community Relationships Protocol
requires companies to engage with communities of
interest on activities, including tailings management,
that may pose a risk to the public.
Our goal is for both of our business units to maintain a
score of A or higher for the protocol, and in the latest
TSM assessment against the protocol, our Manitoba
and Peru business units received “AA” and “A” ratings,
respectively, across all five indicators. Details on
activities in our business units are discussed below.
Following the protocol helps advance four UN
Sustainable Development Goals – Goal 3 (Good Health
and Well-being), Goal 6 (Clean Water and Sanitation),
Goal 9 (Industry, Innovation and Infrastructure) and
Goal 12 (Responsible Consumption and Production) –
by protecting water-related ecosystems, incorporating
environmentally sound and safe technologies and
industrial processes, and minimizing adverse impacts
on human health and the environment.
The continuous improvement
and safe management of TSFs
is an industry-wide priority,
and several industry initiatives
have been, and are being,
implemented to strengthen
tailings management.
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Tailings Governance
Our Tailings Governance Charter specifies the
governance that supports the safe management of
tailings facilities. Each site or business unit employs a
tailings management system that supports the
day-to-day activities – such as planning, monitoring,
risk identification and reporting – associated with
the safe management of tailings design, construction
and operation.
One important requirement in the TSM protocol is that
a company’s governance defines and documents
accountability and responsibility for tailings
management. Our Accountable Executive Officer (AEO),
who is our Chief Operating Officer, has the authority
and responsibility to engage with the Board of
Directors on any issues related to tailings management
issues. Each business unit Vice President has similar
accountabilities to the AEO for facilities within their
business unit. A Tailings Governance Team (TGT),
composed of individuals from the business units and
relevant corporate functions, serves in a monitoring
and advisory role to assist the AEO in the design and
operation of appropriate processes to ensure that
required third-party reviews are carried out and
information is appropriately available to the AEO. Key
third-party roles include the following:
• Independent peer review board (IPRB) – an
independent panel of qualified and experienced
individuals who have not been directly involved with
the design or operation of the facility, which
evaluates the technical aspects of TSFs throughout
the mine lifecycle.
• Engineer of record (EOR) – a qualified individual
who verifies that the facilities are designed,
constructed and performing in accordance with
performance objectives and all applicable
guidelines, standards and regulatory requirements.
• Dam safety review provider – conducts dam safety
reviews (DSRs), independent of the IPRB and EOR,
every five years, as per the recommendation of the
Canadian Dam Association’s Dam Safety Guidelines.
Annual tailings management reviews are another key
governance control. In 2020, we conducted an internal
audit at our operating sites to determine compliance
with our Tailings Governance Charter and the TSM
protocol. The audit findings, which were reported to
our Board of Directors, concluded that Hudbay’s TSFs
are well managed while also identifying some
opportunities for continuous improvement.
In 2020, there were no incidents at any of our TSFs
that threatened human health or the environment.
We set a 2020 public environmental target for our
Manitoba Business Unit to complete the construction
of control berms and initiate phase two work to
upgrade the Flin Flon Tailings Impoundment System
(FFTIS). The control berm construction project and the
phase two work were completed during the year.
Phase three work involves dam stabilization work at
lower priority structures. These activities are
highlighted in the Strengthening Tailings Facilities in
Manitoba case study.
On-the-Ground Approach
to Tailings Stewardship
Hudbay manages four TSFs – three (including one
inactive) at our Manitoba Business Unit and one at our
Constancia operation in Peru. Details on our tailings
facilities are available in our Mine Tailings Disclosure
Table posted on our website.
At our Anderson Tailings Impoundment Area (TIA) in
Snow Lake, we completed work on raising the dam
around Anderson to accommodate increased
production from our Lalor mine. The dam expansion
project used the downstream construction method.
In Peru, an independent review of our Constancia
tailings facility found that it complied with our
standards and good practices.
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Value Creation
Hudbay creates value – for communities, for employees, for shareholders and for other stakeholders – across every stage of the mining lifecycle.
Drawing upon close to a century of experience in finding, building, operating and safely closing mines, Hudbay is one of the few mid-size
mining companies still able to deliver value in this way. We have been able to transfer the skills learned in northern Manitoba to resource-rich,
well-regulated mining jurisdictions across the Americas and are equally at home working underground or in an open pit. We are recognized
for operating low-cost mines while maintaining high standards and a remarkable track record for extending the life and value of our mines.
FIND
BUILD
Through its strength in exploration and geology, Hudbay has continued to create
value for all of its stakeholders. While we have in-house teams, exploration activity
contributes to local economies through team support jobs and the leasing or purchasing
of equipment, services and supplies from local vendors. In our exploration activities, we
engage with local communities and rights holders to build mutual understanding and
collaboration. Within the last 10 years, we have discovered economically viable satellite
deposits near or adjacent to our Lalor and Constancia mines. These close-to-home
assets enable Hudbay to reduce risk, leverage existing infrastructure and provide new
employment and development opportunities for our mining teams.
Developing a mine creates opportunity. It provides a range of jobs for people
in nearby communities as an area is cleared and prepared and construction of
the mine moves forward. Local vendors benefit, as the project looks to them
for a variety of equipment, goods and services. Early in the mine lifecycle, we
engage the communities to understand their social and economic priorities and
to support the programs that address their needs and ambitions. Within the
last decade at Constancia and Lalor, Hudbay has demonstrated an unsurpassed
facility for rapidly developing highly productive, long-life mines.
MAINTAIN AND CLOSE
OPERATE
Hudbay has closed many mines in its long history, steadily improving its practice over
the years. Today, in line with TSM’s Mine Closure Framework and SDG 15, Hudbay seeks
to rehabilitate former mines to an agreed-upon beneficial post-mining use that is as
close as practical to the area's pre-use condition. When we see that an asset – a mine or
piece of significant infrastructure – may potentially return to future usefulness or
profitability, we put it on “care and maintenance” to preserve its viability. In every case,
we work closely with communities near our mines to develop mine closure plans that
respond to the social and economic impacts of closing a mine.
Active mines can make significant contributions to local economies – as an
employer, as a customer for community businesses, by supporting community
initiatives and through taxes paid to municipal, regional and federal
governments. Recognized for its abilities as an exceptionally productive, low-cost
operator, Hudbay also has a long history of adding value to existing assets by
expanding reserves and extending the life of its mines.
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Lalor mine was an in-house
discovery that has helped
grow our reserves in
Snow Lake by 138%.
Our exploration focus
for 2021 is on areas near our
operations and owned properties
in Manitoba, Peru, Arizona and Nevada.
FIND
Successfully constructed
Constancia (Peru),
Lalor (Canada) and
Reed (Canada)
simultaneously
during 2012–2014.
BUILD
Currently moving forward on
development and commencing
mining activities at the high-grade
Pampacancha satellite deposit
near Constancia.
VALUE
CREATION
Closure plans are reviewed
and updated on a regular basis
throughout the operating
life of a mine. Post-closure
activities include
maintenance and monitoring
to ensure closure objectives
are progressing successfully
as intended.
Where practical, we carry out
progressive rehabilitation – at
Constancia we have rehabilitated
84.3 hectares of previous construction
and quarry areas since 2015.
MAINTAIN
AND CLOSE
OPERATE
Ramp-up of Constancia from
first production to commercial
production was three times
faster than our peer average.
Continuous operational
improvements at our mines
help drive down costs while
increasing efficiencies
and productivity.
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Stakeholder Engagement
Those individuals and organizations who have an
interest in, may be affected by, or believe they may be
affected by our activities and business decisions are
considered stakeholders. The perspectives of
employees, shareholders, suppliers, government
officials, communities, rights holders and other key
stakeholders help us prioritize and manage our
impacts, make better decisions and continuously
improve. Through transparent, ongoing dialogue with
stakeholders, we work to better understand their
needs and expectations. The frequency and channel
of engagement vary depending on the stakeholder,
topic or concern.
Our Stakeholder Engagement Standard and
supporting guidance document detail the
requirements and expectations for understanding
stakeholder perspectives and addressing concerns,
and our Shareholder Engagement Policy promotes
open and sustained dialogue between our Board of
Directors and shareholders.
To collectively work on issues and solutions, we
participate in industry associations and multi-
stakeholder initiatives that bring together
organizations and individuals to share expertise,
lessons learned and best practices.
2020 Engagement Activities and Topics
The following table lists key stakeholders and how we engaged with them in 2020:
Stakeholder group
Key topics/concerns raised
Engagement mechanisms
Examples of engagement in 2020
Sustainability Performance
Shareholders, debtholders,
investors and analysts
About This Report
• Upcoming closure of the 777 mine, mill
and zinc plant in Flin Flon
• Rosemont legal ruling
• Lalor gold results
• Pampacancha land access
• Mergers and acquisitions
• Tailings facility safety
•
•
Industry conferences, participation in ESG panels
(12 events)
Investor meetings and presentations, road shows
and conference calls (approximately 300 events)
• Virtual Annual General Meeting of Shareholders
• Website, news releases and other public disclosures
• Board annual shareholder outreach
Conducted an investor perception study to understand
investor views of strategy, management team strengths
and performance of investor relations program.
Inaugural participation in two gold-focused
investor conferences.
Details on these and other engagement activities are
discussed further in the Tailings Stewardship and Climate
Change sections, and on our Investors web page.
Employees and contractors
• Health and safety
• Work processes
• Business performance
• Understanding of compensation and benefits
• Opportunities for personal development
• Environmental requirements
• Training for policies, permits or other requirements
• Quarterly CEO email messages
• Senior management site visits
• Town hall meetings
• Orientation and training programs
• One-on-one and small group manager/staff meetings
• Health and wellness committees and activities
• Hudbay intranet
• Staff newsletters
Increased the frequency of video town halls to stay
connected during the COVID-19 pandemic.
Conducted surveys and had one-on-one conversations
to understand what employees needed as they adjusted
to working from home or to new shift schedules.
Details on these and other engagement activities are
discussed further in the Our People section.
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2020 Engagement Activities and Topics (cont’d)
Stakeholder group
Key topics/concerns raised
Engagement mechanisms
Examples of engagement in 2020
Unions
• Updates on mine life and activities related
to closure
• Mobility
• Seniority
• Outstanding grievances
• Health and safety
• Meetings with union leaders on outstanding issues
• Formal grievance processes
• Joint health and safety committees
Worked with the Unified Workers Union of
Constancia (SUTRAMICOH) in Peru on shift schedules,
accommodations and protocols designed to keep people
healthy and safe and the Constancia site COVID-free.
Local communities
and Native American/
Indigenous groups
• Development project updates
• Community and area activities and investment
• Safety and environmental concerns
• Land use
• Water use and quality
• Local employment and procurement
• Training programs for community members
• Cultural protection, awareness and dissemination
• Educating employees on intercultural competency,
conflict resolution, human rights and anti-racism
• Future operations plans (operating life)
• Community information and consultation
meetings/dialogue tables
• Community partnerships
• Site tours and open houses
• Site grievance/community response processes
• Community relations offices
• Cultural awareness workshops and other training
Customers
• Achieving agreed-on terms of delivery for products
• Provision of information on product safety and
product origin
• Direct contact
•
• Managed production interruptions
Industry and business forums
• Compliance with environmentally and socially
responsible performance and risk management
With the Flin Flon site preparing for closure in 2022,
engaged with employees and union leaders on the
plan to transition as many members of the Flin Flon
workforce as possible to the Snow Lake operations.
Details on these and other engagement activities are
discussed further in the Our People section.
Reached key exploration and land purchase agreements
with local communities in Peru and concluded the
Consulta Previa consultation process with the Chilloroya
community while following strict COVID-19 health and
safety protocols for in-person engagement.
Held four eight-hour interactive Indigenous cultural
awareness workshops at our operations in Flin Flon
and Snow Lake, and supported and promoted virtual
Indigenous events such as National Aboriginal Day.
Conducted several virtual activities including
presentations at tribal council meetings and meetings
with the chairs and vice-chairs of tribes related to our
Mason project in Nevada.
Details on these and other engagement activities are
discussed further in the Social Impact section.
Throughout the COVID-19 pandemic, continued to
engage with our customers around the world and
deliver our products in an environmentally and socially
responsible manner.
Details on these and other engagement activities are
discussed further in the Responsible Supply Chain section.
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Materiality
We define our material sustainability issues as those
economic, environmental and social issues most
important to stakeholders and our business.
Every three years, we review our priorities to make sure
they reflect changes in our business and/or emerging
issues. The latest review in 2020 evaluated the
environmental, health, safety and community (EHSC)
matters that are most significant to Hudbay in terms of
business impact and degree of stakeholder interest.
Materiality Matrix
During the materiality review, 13 priority issues were identified and then ranked based on the level of business
risk and the level of importance to our stakeholders. The issues with a higher business risk are those where we
have controls in place and conduct due diligence on an ongoing basis, but they also have elements that are
outside of our control (e.g., community perceptions, metal prices, individual behaviors). The issues with a lower
business risk are those we can more directly control by effectively implementing our systems and processes.
The diagram below lists our priority issues and how they rank in terms of business risk and stakeholder interest.
[TBD (materiality megatrends piece)]
Climate Change
Human Rights
Water
Land and Biodiversity
Local Market Presence
Ethics
T
S
E
R
E
T
N
I
R
E
D
L
O
H
E
K
A
T
S
Health and Safety
Stakeholder Engagement
Tailings
Economic Performance
Employee Relations
Aboriginal/Indigenous
Relations
BUSINESS IMPACT
Environment
Labour
Society
Governance
Economic
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The following table indicates how our priority issues align with the GRI Standards, the Sustainability Accounting Standards Board (SASB) and the Task Force
on Climate-related Financial Disclosures (TCFD). Details on specific reporting indicators are disclosed in our Reporting Framework index.
Priority issue
Ethics
Human rights
Stakeholder engagement
GRI Standards
Ethics and integrity
Anti-corruption
SASB
TCFD
Business ethics and transparency
Security practices
Human rights grievance mechanisms
Security and human rights
Stakeholder engagement
Environmental grievance mechanisms
Grievance mechanisms for impacts on society
Community relations
Community well-being
Significant actual or potential negative impacts
on local communities
Community relations
Indigenous relations
Indigenous rights
Indigenous peoples
Health and safety
Occupational health and safety
Workforce health and safety
Employee relations
Labour/management relations
Labour relations
Economic performance
Local market presence
Land and biodiversity
Water
Tailings
Climate change
Economic performance
Indirect economic impacts
Procurement practices
Employment
Closure planning
Resettlement
Biodiversity
Water
Biodiversity impacts
Water management
Effluents and waste
Waste and hazardous materials management
Energy consumption
Direct GHG emissions
Indirect GHG emissions
GHG emissions
Energy management
Board oversight of climate-related risks
Scope 1 and 2 emissions and related risks
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Boundaries
We conducted the materiality review on the initial
boundary assumption of activities and facilities within
Hudbay’s management control (as described in the
Our Company section of this report). Participants in the
review process were then asked for cases in which
boundary limits should be adjusted for specific aspects.
Based on stakeholder expectations and business risk,
the following additions were deemed appropriate:
• Safety statistics are tracked and reported for all
contractor activities under Hudbay contracts
and supervision
• Environmental incidents related to transportation
between Hudbay locations and local supplier
activities are generally tracked, reviewed and
reported by Hudbay
• Grievances are accepted and investigated with
respect to local contractors and security activities
related to Hudbay, and are included in grievance
numbers and characterization in this report
• Scope 2 greenhouse gas emissions are calculated
Sustainability Performance
and reported
About This Report
Exploration sites have special considerations in our
reporting:
• Sites for which we do not maintain managerial
control are excluded
• Corporate exploration with managerial control over
the site is included and reported individually
• Business unit exploration with managerial control
over the site is included and embedded in the
business unit numbers
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Responsible Supply Chain
Mining is the first stage of a complex value chain that
converts mineral resources into products that meet
the needs of everyday life.
As a mining company that operates in many different
jurisdictions, we work with hundreds of suppliers and
subcontractors. We focus our supply chain
responsibility efforts on activities where we can have
the greatest influence: our operations, contractors
working at our sites, local suppliers, and Hudbay
products up to the point from which they are shipped
(at the plant gate in Manitoba, and at the port loading
facility in Peru). All suppliers are screened for
corruption risks. Our legal function conducts due
diligence on all elevated risk suppliers, and our
internal audit function reviews the contract/supplier
screening process. Each operation conducts additional
monitoring of on-site and local suppliers.
We seek suppliers that share our values and work in
partnership with us to continuously improve our
performance. The standards of conduct that we
expect of suppliers who wish to do business with
Hudbay are stated in our Supplier Code of Conduct
We seek suppliers that
share our values and work
in partnership with us to
continuously improve our
performance.
and Ethics (Supplier Code of Conduct). All suppliers
are expected to read, accept and comply with the
Supplier Code of Conduct and all applicable compliance
policies – including our Statement on Anti-Corruption,
Human Rights Policy and Environmental, Health and
Safety Policy – as a condition to doing business with
Hudbay. Expectations of our suppliers include:
• Reading, accepting and complying with the Supplier
Code of Conduct and all applicable policies
• Accepting Hudbay’s supplier due diligence process
• Reporting suspected violations of the Supplier Code
of Conduct and applicable compliance policies by
any supplier or Hudbay personnel
Our marketing function requires smelters who receive
our concentrate to respond to a questionnaire to
ensure the smelters follow processes and standards
for responsible mineral production.
• Complying with all applicable laws, rules
and regulations
• Conducting business honestly, ethically
and in accordance with social codes
• Complying with anti-corruption laws and informing
Hudbay of any conflicts of interest
• Protecting confidential information
• Respecting human rights and observing Hudbay’s
Human Rights Policy
• Establishing practices and procedures that
protect the health and safety of workers and
the environment
Supply Chain Performance
The direct supply chain for our copper concentrate
and zinc metal products originates in Hudbay’s mines
in northern Manitoba and Peru.
The indirect supply chain for energy, goods and
services used in transforming ore and concentrate
into products includes thousands of suppliers, who
provide operating and maintenance supplies, energy
and fuels, and capital goods:
• In Peru, our top 50 suppliers accounted for 83% of
our spending, and 95% of our spending was with
suppliers based in Peru.
• In Manitoba, our supplier base relates to production
operations and capital projects. Our top 50 suppliers
represented 45% of our spending in 2020, and 97%
of our spending was with suppliers in Canada. These
suppliers provided goods and services such as
engineering services, electricity, spare parts for
equipment, underground haul trucks and other
capital equipment.
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The safety data sheets (SDS) that accompany all our
products provide details of their composition,
toxicology, handling, storage and exposure issues. We
further meet our product stewardship commitments
by collaborating with governments and industry
associations, including the International Zinc
Association, the International Molybdenum
Association and the European Copper Institute, to
guide our compliance with international requirements
such as those provided by the International Maritime
Organization (IMO).
The IMO specifies hazard classification criteria for bulk
cargoes, and the International Convention for the
Prevention of Pollution from Ships (MARPOL) imposes
restrictions on the disposal of bulk cargo residues
classified as “harmful to the marine environment”
(HME) under the amended Annex V of the MARPOL
convention. Hudbay engaged the European Copper
Institute (ECI) to determine the MARPOL classification
for Constancia’s copper concentrates. From this study
and others, all Hudbay copper concentrates have been
determined to not be HME.
Hudbay’s top 10 suppliers in 2020, representing 31%
of procured value, were (in alphabetical order):
• CN (CAD)
• Corporación Primax S.A.
• Dumas Contracting Ltd.
• Enel Generación Peru S.A.A.
• Epiroc Canada Inc.
• Ferreyros Sociedad Anónima
• Manitoba Hydro
• Servosa Cargo S.A.C.
• Stracon S.A.
• Strilkiwski Contracting Ltd.
In early 2020, the COVID-19 pandemic impacted
business activities in many ways, including within our
supply chain. In March, we commenced a temporary
and orderly suspension of operations at Constancia in
Peru to comply with the Peruvian government’s state
of emergency declaration, and, following more than
two months of not producing any copper, we resumed
operations in June. Although Constancia did not
experience any significant issues related to obtaining
critical materials and supplies, we commenced
construction of an on-site materials warehouse to
provide additional resiliency. With a 95% inventory
accuracy and service level (meaning when an item is
needed, it is available 95% of the time), Constancia
continued to maintain its industry-leading inventory
management performance. None of our operations
in Manitoba experienced any critical supply issues
during the year.
We also worked with our suppliers to help one
another during these uncertain times. For example,
we partnered with SERVOSA, a copper concentrate
transport contractor in Peru, to support drivers by
equipping their trucks with food and housing
essentials so that they can rest as needed and limit
their contact with others. The pandemic also
precipitated efficiency improvements, such as
requiring suppliers to fill out forms and certifications
online and prior to coming on-site, rather than when
arriving at the site.
In addition to maintaining frequent communications
with our suppliers about the COVID-19 impacts, we
publicly disclosed material updates via press releases
and regulatory filings.
Products
We produce copper concentrate, cast zinc and
molybdenum. Copper is essential in today’s society,
serving as a vital component in electronics, electrical
transmission, and the electric vehicle (EV) revolution.
In health care, new applications for copper are being
identified due to its ability to kill bacteria. Zinc is
primarily used for galvanizing metals, such as iron and
steel, and is important in the preparation of certain
alloys. Molybdenum is also used in the production of
alloys, to increase strength and electrical conductivity
and resist corrosion. All three metals are important to
the renewable energy industry.
Our copper concentrate and zinc metal are produced
at operations in Canada and Peru:
• Hudbay sold and delivered 63% of its copper
concentrate to traders and smelters in Asia and 37%
to traders and smelters in the Americas and Europe.
From there, several stages of smelting and refining
of the copper content ultimately result in 99.99%
pure copper, an essential metal for modern living.
• We ship cast zinc metal produced at our Flin Flon
zinc plant by rail and truck to industrial customers
throughout North America (primarily to galvanizers
who use it to protect steel from corrosion).
• Our molybdenum concentrate is produced in Peru
and is sold and delivered to traders and roasters in
Asia and South America.
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United Nations Sustainable Development Goals
Hudbay recognizes the opportunity that the mining
industry has to positively contribute to the 17 UN
Sustainable Development Goals (SDGs) that are a
part of the UN’s 2030 Agenda for Sustainable
Development. There are several SDGs for which we
consider the industry a natural fit for taking on a
leadership role, and others where we feel our
company can progress by working alongside
government, civil society and other organizations.
Although the needs of stakeholders and the
communities near Hudbay’s operations are the
primary drivers of our activities, we believe many of
these efforts help advance the desired outcomes
stated in the SDGs. We will continue to explore
opportunities to measure and report our
contributions to the SDGs and integrate them into
our business planning and reporting.
The following tables outline the SDGs that are most relevant to our business and identifies where the topics are discussed in this report.
Sustainable Development Goals
Link to topic
Sustainable Development Goals
Link to topic
Business and Financial Review
Our People
Social Impact
• Collaborating to Help Reactivate the
Economy and Build Capacity Among Women
in Rural Peru
• Building the Foundation for Long-Term
Constructive Relationships in Nevada Based
on Mutual Respect
Social Impact > Our Approach
• Local Hiring and Procurement
• Community Development
Social Impact > Manitoba
Social Impact > Peru
Social Impact > Arizona and Nevada
Social Impact > Manitoba
• Preparing for Closure Impacts and Transition
Social Impact > Peru
•
Improving Access to Health Care
Environment
• Water Harvesting Projects Aim to Provide
Community with Sustainable Water Source
Environment > Our Approach
• Water (sidebar story)
Environment > Peru
• Conserving and Protecting Biodiversity
Sustainability Approach > Sustainability
Governance
•
International Systems and Performance
Standards
Industry Involvement
•
Our Company > Business Conduct
• Compliance Training
Our People > Our Approach
• Diversity and Inclusion
Our People > Peru
Key Performance Data Table (Employees)
• Workforce Diversity
Environment
• Reducing Fresh Water Use and Lowering
Energy Costs in Manitoba
• Water Harvesting Projects Aim to Provide
Community with Sustainable Water Source
Environment > Our Approach
• Water
Environment > Peru
• Meeting Environmental Performance
Objectives
• Testing Alternative Environmental
Technologies and Methods
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Sustainable Development Goals
Link to topic
Sustainable Development Goals
Link to topic
Sustainability Approach > Tailings Stewardship
Sustainability Approach > Responsible
Supply Chain
• Supply Chain Performance
• Products
Environment > Our Approach
Environment > Manitoba
Environment > Peru
Environment > Arizona and Nevada
Environment > Our Approach
• Land and Biodiversity
• Closure and Reclamation
Environment > Manitoba
• Managing Biodiversity Impacts and Preparing
for Closure
Environment > Peru
• Conserving and Protecting Biodiversity
Key Performance Data Table (Environment)
• Land Use
• Sites Requiring Biodiversity
Management Plans
• Habitats Protected or Restored
•
IUCN Red List Species
Sustainability Approach > Human Rights
and Security
• Security Practices
Our People > Our Approach
• Diversity and Inclusion
Our Feature Case Studies
• Responding to COVID-19: Resilience
in Action
Our People > Our Approach
• Health and Safety
Our People > Manitoba
• Focusing on Critical Controls and Keeping
People Safe
Our People > Peru
• Protecting People During the Pandemic
Sustainability Approach
• Hudbay Aligns with New Sustainability
Reporting Frameworks
Environment
• Total Greenhouse Gas Emissions Chart
Environment > Our Approach
• Climate Change
Recognizing that the SDGs represent national-level governmental commitments, we will continue to align our activities
with relevant goals and help connect national processes to local needs, as represented in SDG 17 (Partnerships for the Goals).
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OUR PEOPLE
Sustainably operating our business requires that we recruit, engage and
retain experienced and dedicated personnel who are committed to our
values and business objectives. To ensure our employees and our
organization are positioned for success today and in the future, we are
investing in our people by developing their skills, supporting their career
goals, embracing their diversity, and providing a healthy and safe workplace.
TOTAL RECORDABLE INJURY FREQUENCY
(lost time, restricted work, and medical treatment injuries
per 200,000 hours worked)
LOST TIME INJURY SEVERITY
(days lost per 200,000 hours worked)
HIGHLIGHTS
15%
Indigenous employment
in Manitoba
16%
overall female
employment
Constancia first mine in Peru to obtain
SafeGuard certification, recognizing
full compliance with all COVID-19
safety protocols
2017
2018
2019
2020
2017
2018
2019
2020
0.3
0.3
0.4
0.3
8.4
14.3
4.1
3.2
Hudbay 2020 Annual Sustainability Report
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Hudbay Team Comes Together to Safely Resume Operations After Shaft Incident
On October 9, 2020, personnel at our 777 mine in Flin
Flon, Manitoba, were conducting routine maintenance
of the hoist rope and skip (the container used to raise
ore from underground) when the hoist rope detached
from the skip, causing the skip to fall to the bottom
of the shaft.
One employee experienced a concussion caused by
the sound wave from the skip falling to the bottom
of the shaft, and we are thankful that there were
no other serious injuries. All personnel were safely
evacuated from the mine, and inspections needed to
be conducted before we could access the shaft area
and assess the full extent of the damage.
After preliminary inspections of the shaft were
completed, the initial expectation was that it could take
two months for the shaft to resume full production.
Immediately following the incident, a cross-functional
team came together to develop a detailed plan and
mobilize the resources needed to safely resume
operations as soon as possible. Hudbay’s supply chain
function was instrumental in engaging contractors
with expertise in shaft repairs, identifying steel
fabricators and engineers, procuring the necessary
supplies and working with OEMs on structural
inspections. The Health and Safety team worked with
safety co-chairs (individuals appointed by the unions)
to ensure all repair activities had a safe work
procedure form completed and were approved by
Hudbay management and the co-chairs. Technical and
Operations teams from both 777 and our Lalor mine
in Snow Lake worked together on a business
continuity plan that identified mining activities that
could take place at 777 during the repair work while
also temporarily reassigning people and equipment
from 777 to Snow Lake to increase production at Lalor.
On November 25, we resumed full production at 777,
completing the repairs ahead of schedule and under the
estimated repair costs of $5 million. The value-added
mining activities at 777 during the repair work also
allowed the mine to return to full production at a
higher rate and mitigate some of the production losses
to meet the business unit’s metal guidance for the year.
The team also conducted an Incident Cause Analysis
Method (ICAM) investigation to prevent a similar
incident from happening again. Changes included
engineering a solution and updating software to
automatically slow down the hoist when in manual
mode, improving procedures and updating training
for hoist operators, and adding checkpoints in the
procedure to confirm when tasks are complete.
“This was an unfortunate event, but we are thankful
that our safety protocols were closely followed. The
exceptional team in Manitoba once again
demonstrated their ability to overcome a challenging
situation and quickly and safely bring this important
asset back into full production ahead of schedule,”
said Peter Kukielski, Hudbay’s President and Chief
Executive Officer.
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Hudbay’s supply chain function was
instrumental in engaging contractors with
expertise in shaft repairs, identifying
steel fabricators and engineers, procuring
the necessary supplies and working with
OEMs on structural inspections.
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Recognition Program
in Peru Aims to Increase
Employee Engagement
Across all our operating sites and office locations,
OneHudbay is the foundation for how we work. It
formalizes our approach for embedding Hudbay’s
values across the organization and sets universal
expectations regarding leadership practices and
processes. The overall goal of OneHudbay is to
build trust and an accountability-based organization,
which leads to higher job satisfaction and stronger
employee engagement.
Engaged employees benefit our business in many
ways – they often go above and beyond in their role,
are committed to helping Hudbay achieve our goals,
and are less likely to voluntarily leave the business.
Praising and recognizing employee achievements can
significantly drive higher engagement levels across
the organization, and this is the goal of our Peru
Business Unit’s new recognition program called
COBRE (Spanish for “copper”). Each letter in the
program’s name represents an area that describes the
individual actions that contribute to Hudbay’s success:
• C – culture
(Hudbay’s values demonstrated in actions)
• O – operational excellence (individual and team
performance)
• B – balance (demonstrating work–life balance
and healthy practices)
• R – responsible (commitment to safety,
and to social and environmental responsibility)
• E – evolution
(career growth, job anniversaries and retirements)
When launched in 2021, COBRE will serve as the
framework for all recognition initiatives in Peru,
helping build a culture and environment that
recognizes notable efforts and fostering a greater
sense of purpose among employees.
When launched in 2021, COBRE
will serve as the framework
for all recognition initiatives in
Peru, helping build a culture and
environment that recognizes
notable efforts and fostering
a greater sense of purpose
among employees.
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Our Approach
Health and Safety
Ensuring the safety and health of our people is the
most important investment we can make.
Our Environmental Health and Safety Policy states
our commitment to control risks, transparently report
our performance, and continuously improve the
systems and practices that protect people. Within
two years of reaching commercial production, all
operations are required to be certified to ISO 45001
(which replaced OHSAS 18001), an internationally
accepted standard for occupational health and safety
management systems, and maintain certification
throughout the life of the operation.
We also apply the Mining Association of Canada’s
(MAC) Towards Sustainable Mining (TSM) Safety and
Health Protocol, which assesses and measures our
performance. In 2020, the protocol was updated to
address wellness and mental health due to the impacts
of COVID-19 and to enhance the focus on fatality
prevention with the addition of critical controls.
Regular monitoring, self-assessments and triennial
third-party verifications ensure that operations remain
in compliance with these standards and protocols.
Applying these health and safety measures helps
advance two UN Sustainable Development Goals –
Goal 3 (Good Health and Well-being) and Goal 8
(Decent Work and Economic Growth) – by promoting
workplace health and a safe and secure working
environment, with a goal of zero harm.
To foster transparency and hold ourselves
accountable for our safety performance, we set public
safety targets related to achieving a year-over-year
improvement in our total recordable injury frequency
rate and our lost time injury severity rate.
Although we are proud of our safety performance, we
continue to drive improvements in our efforts to
prevent fatalities. In 2020, we focused efforts on
advancing our Critical Control Management (CCM)
journey to identify the risks and the associated
controls that are critical to preventing a serious injury,
or fatality. We are building CCM into our overall
management systems, practices, values and culture to
ensure critical controls are in place and are effective.
the mine site. Emergency response teams receive
specialized training that prepares them to mobilize
quickly and effectively during an event at a mine site.
In Manitoba, these teams participate in mine rescue
competitions that are designed to test knowledge and
sharpen the skills of those who are called on to
respond to a mine emergency. Due to the COVID-19
pandemic, however, the annual competitions Hudbay
participates in were cancelled in 2020.
Hudbay aims to build a culture dedicated to zero
harm, where everyone who works at our sites has the
knowledge, skills and equipment needed to work
safely and where our leaders empower their teams
and actively encourage them to speak up when they
have concerns. Our safety programs provide training
for the activities undertaken, whether at an operation,
exploration site, or office location, or for visitors to
We record, investigate and analyze incidents and non-
conformance to our standards using our company-wide
integrated information system. Significant incidents,
based on criteria set by the Board, are reported to our
Board on a quarterly basis. Serious and high-potential
incidents, such as the skip incident at our 777 mine
discussed in the Hudbay Team Comes Together to
Safely Resume Operations After Shaft Incident case
Hudbay 2020 Annual Sustainability Report
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study, are identified in our systems and investigated in
depth to analyze the cause as well as the controls and
corrective actions needed to prevent a similar incident
from happening again.
Our occupational health programs monitor exposures
to health risks, such as hearing loss and illnesses
caused by airborne agents. We have several wellness
programs to help managers recognize mental health
issues when they arise and to ensure employees get
the proper attention and care. Many of these
programs were enhanced in 2020 to address the
challenge of the COVID-19 pandemic and its impact
on well-being and mental health.
As an active member of the Mining Safety Round
Table, we engage with other mining companies
throughout the year to share lessons learned and best
practices to raise the health and safety performance
of the entire industry.
Employee Relations
We want to be recognized as an employer of choice
everywhere we operate. This requires us to offer fair
wages and compensation, to invest in our people by
providing meaningful work and opportunities for
career development and growth, and to foster a sense
of purpose.
Our Code of Business Conduct states our commitment
to responsible workplace and business practices. This
includes a non-discriminatory and harassment-free
workplace. We do not tolerate any form of violent
behaviour, and personnel are expected to perform
their job duties in a professional manner.
Approximately 1,390 full-time, part-time and contract
employees (60% of our workforce) are represented by
a union, and we respect the right of our employees to
join a union and engage in the collective bargaining
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process. We work to collaborate with the eight unions
that represent our employees, partnering with them
on solutions that create mutual benefit.
We engage with our employees and keep them
informed about important business matters through
various channels and tools. These include town hall
meetings, workshops, internal emails and videos from
senior leaders, and our company intranet, where we
post employee-focused news and resources. In 2020,
we transitioned our employee communications and
outreach efforts – including updates and operating
changes related to the COVID-19 pandemic – to online
and virtual platforms. The Company’s intranet was
leveraged to widely distribute wellness and mental
health awareness tips and resources and encourage
employees to prioritize their health and well-being.
With a large number of employees eligible for
retirement in our Manitoba Business Unit, our
retirement-readiness programs have been useful in
providing information and tools to prepare employees
for success once they leave the workforce.
Building a Highly
Effective Organization
Our “OneHudbay: How we work” managerial
leadership system supports a highly effective
organization that prioritizes the development and
career progression of all employees. The system
focuses on the following four main objectives:
• A clear mission, vision and strategy which translates
into an integrated business plan;
• The right organizational structure with the
appropriate levels to achieve our strategy and goals;
• The right person in the right role, doing the right
work, at the right time – all of which help our
people reach their full potential; and
• Effective working relationships within teams and
across functions.
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has adopted a stand-alone Diversity Policy.
Our Diversity Policy seeks to ensure a diverse
representation of women and designated groups
(Indigenous peoples, persons with disabilities and
visible minorities) among the members of our Board
and senior management. To ensure sustained progress
in this regard, the Diversity Policy was revised in early
2021 to include a target for the Company to have at
least 30% women directors on the Board. This policy
confirms the Board’s commitment to diversity and
inclusion as part of our core values and to setting a
“tone at the top” that leads to greater diversity on the
Board, among senior management and across the
organization. Consistent with our Diversity Policy,
women represent 30% of the members of our Board.
The Board recognizes the need for continued progress
in this regard and is focused on other ways to advance
diversity and inclusion across the organization.
Because one of our primary diversity and inclusion
objectives is to ensure that our workforce reflects the
demographics of the communities near our
operations, each site prioritizes employment
opportunities for members of the local communities
and Indigenous groups.
Throughout 2018 and 2019, we focused on
embedding the OneHudbay structure and associated
programs throughout the business. The focus in 2020
was on maintaining the established processes and
reinforcing how we work and support one another in
an accountability-based organization, especially as the
COVID-19 pandemic shifted priorities.
Peter Kukielski joined more than 250 CEOs across
Canada in signing the BlackNorth CEO Pledge,
committing to eliminate barriers that prevent Black
employees from advancing in their careers, expanding
unconscious bias and anti-racism education, and
creating conditions for successfully attracting and
retaining talent from the Black community.
In December, the Mining Association of Canada issued
a formal statement conveying its members’
commitment to denounce all forms of racism, sexism
and discrimination and to support several actions to
eliminate them in the Canadian mining sector.
At the end of 2020, we established a Diversity and
Inclusion Committee composed of employees at the
corporate office. The committee will advise
management on diversity, inclusion and equity topics
and ideas, and help achieve the objectives outlined in
the BlackNorth CEO Pledge. Another goal in 2021 is
to further expand the committee and develop a
company-wide diversity and inclusion policy.
In terms of gender diversity, we support the Catalyst
Accord 2022 and the 30% Club, both of which call for
the advancement of women in business, and our Board
To support OneHudbay and other human resources
efforts, we are implementing a Human Resources
Management System (HRMS) based on SAP’s
SuccessFactors software. The system includes a set of
talent management solutions and robust workforce
analytics that we will introduce over the next five
years. In 2020, we completed the implementation of
the HRCore employee database, consolidating all
critical employee information into a single interface for
the first time. This milestone serves as the foundation
for introducing the system’s higher-value solutions,
including performance management, recruitment,
learning and development, onboarding and succession
planning. During the year, we successfully expanded
the scope of our Performance Management System to
more areas of the organization.
Diversity and Inclusion
Our values of dignity and respect, caring, openness
and trustworthiness guide our efforts to promote an
inclusive workplace that embraces the diverse
backgrounds, experiences and perspectives that make
us a stronger business. Our OneHudbay approach
provides a crucial foundation for attracting and
retaining diverse talent.
In June, Hudbay’s President and CEO, Peter Kukielski,
addressed employees about the increasing demand
for justice and the greater attention to longstanding
racial inequalities around the world, and he
recognized that there was more work to be done to
ensure that differences and diversity across Hudbay
are embraced as valued assets.
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Manitoba
Employees in our Manitoba Business Unit primarily
work at two mining operations. The Flin Flon complex
near the towns of Flin Flon (Manitoba) and Creighton
(Saskatchewan) includes the 777 mine, Flin Flon mill
and zinc plant, and the Snow Lake operations consist
of the Lalor mine, Stall mill, New Britannia mill and
Anderson Tailings Impoundment Area (TIA).
At year-end, Flin Flon employed 691 people, and Snow
Lake employed 513. Of the employees who work at
Lalor, 47% live in Snow Lake. Around 15% of our
employees in Manitoba identify as Indigenous and
17% are women.
Planning for Transition
With the Flin Flon site preparing for closure in 2022
and the Snow Lake site growing, we continued to
engage with employees and union leaders on the plan
to transition our operations to Snow Lake.
The goal is for the transition plan to be a clear, simple
process so that employees understand their options
as soon as possible. The challenges the plan aims to
address include training and upskilling our people
ahead of the transition so that they are prepared to
take over the development and production drilling
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activities currently being completed by contractors,
and releasing and training people from our surface
operations so that they are ready to work underground.
In 2020, we continued to experience a high number of
retirements and attrition; however, our recruiting
team was able to navigate the constraints posed by
the COVID-19 pandemic to resource our operations
and achieve our production goals. As part of the
transition plan, we identified best practices across the
organization related to training and selected those
that are most applicable to the Manitoba operating
environment. The goal is to standardize the training
so that if an employee moves to another function or
team, they receive a consistent level of training.
Through our OneHudbay approach, we are working to
ensure people are in the right roles – where they can
thrive – and that everyone is treated fairly during the
transition process.
Another talent acquisition opportunity is within
the Pimicikamak Cree Nation located at Cross Lake,
about 200 kilometres from Snow Lake. Since 2018, we
have partnered with the Northern Manitoba Sector
Council on a training-to-employment Indigenous
program at Lalor and have successfully trained and
hired 12 members of the Pimicikamak Cree Nation.
Out of respect for the community lockdowns that the
elders and leadership put in place during the pandemic,
we halted the program in March 2020 and paid those
still employed with Hudbay short-term sickness
benefits until lockdown restrictions were lifted.
Having the support of union leaders is critical to the
transition plan’s success. The collective bargaining
agreements with the unions expired on December 31,
2020, and we delayed negotiations on a new
agreement while these discussions were underway.
We have been able to sign a memorandum of
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understanding (MOU) with two of the six bargaining
units on the transition plan. We are hopeful that the
renewal of the collective agreements can be
completed successfully.
Focusing on Critical Controls
and Keeping People Safe
The Manitoba Business Unit’s safety performance
was largely the same for the year, with our total
recordable injury frequency decreasing by 0.4, but
our lost time injury severity increasing by 5, per
200,000 hours worked.
Contributing to this performance is the business unit’s
Critical Control Management (CCM) efforts to identify
the risks and critical controls that are essential to
preventing a serious incident, or fatality.
In 2019, our Manitoba Business Unit identified nine
top safety risks most applicable to the business, and
developed clear, rigorous and practical rules – known
as Life Saving Rules (LSRs) – that must be followed to
prevent injuries and save lives:
• Energy isolation
• Working at heights
• Unsupported ground/loose
• Vehicles/people interaction
• Fire
• Explosives
• Lifting/material handling
• Confined spaces
• Working with molten metal
Each LSR has controls that must be in place before
completing the task. The LSR program, which is fully
implemented across the business unit, is supported by
the Visible Felt Leadership program, in which leaders
have face-to-face conversations with their team
members in the field on safety issues, especially those
matters related to LSRs and critical controls. In early
2021, we evaluated the effectiveness of the program
by conducting critical control audits to ensure
everyone is working in a way that complies with rules
that save lives.
To manage the risk of the COVID-19 virus spreading
at our operations and among personnel, we
implemented a number of layered workplace controls,
which we highlight in the Responding to COVID-19:
Resilience in Action case study. We held frequent
calls with union presidents and key stakeholders to
discuss the protocols and processes, minimizing the
risk of workplace transmission to keep our people,
their families and the communities safe.
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personnel are transported back to Cusco or Arequipa,
given a COVID-19 screening test and returned home
after testing negative. Due to this quarantine schedule,
rotation shifts were changed from 10 days on-site and
10 days off, to 20 days on-site and 20 days off.
We also changed camp accommodations by lowering
capacity and restructuring the dining hall and corridors
to ensure social distancing. Capacity on all forms of
transportation to the site was reduced by 50%. In
2020, we purchased seven new buses with advanced
air filtration systems that we plan to start running at
increased capacity beginning in early 2021.
The office facility in Lima was closed at the onset of
the pandemic, and all staff members continue to work
remotely. Because around 27% of the employees in
the Peru Business Unit began working full-time from
home at the onset of the pandemic, we developed tips
to help people transition to the changes in routines
and to maintain the effectiveness of their work habits.
In September, Constancia was the first mine in Peru to
receive Bureau Veritas’ SafeGuard certification. The
biosafety certification, which is based on an extensive
audit of the mine’s policies and procedures, confirmed
that the site adheres to best-in-class hygiene and
safety protocols.
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Peru
The workforce in our Peru Business Unit is largely
made up of those who work at the Constancia
operation, which is located in a remote part of
southern Peru. The operating and support personnel
work multi-day shifts, staying at Constancia’s
accommodation camp during their rotation. The camp
amenities include a dining hall, a medical centre and
recreational facilities. We also have staff members
who work at our office in Lima and Cusco.
At the end of 2020, the Peru Business Unit had
904 employees, including 165 term employees
(defined as those with contracts that end on a specific
date). Of our full-time employees, 100% are from
Peru, 13% are from the local communities and 11%
are women. In 2020, one of Constancia’s new hires
from the local community was a woman from
Uchucarcco, who became the first female shovel
operator at a mine site in Peru.
Protecting People
During the Pandemic
The Constancia operation is in a remote area where
everyone at the site stays in the accommodation
camp, so we implemented a COVID-19 Surveillance,
Prevention and Control plan, which includes
comprehensive health protocols, standards and
guidelines to keep the site COVID-free and protect
personnel, their families and their communities.
The protocols include quarantining anyone coming to
the site in an off-site hotel, either in Cusco or Arequipa,
for seven days (reduced to five days by the end of
2020) and giving them a COVID-19 screening test (rapid
and/or molecular) prior to being transported to the
Constancia site. Upon leaving the mine site, all
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Engaging and Retaining People During
Uncertain Times
The Peru Business Unit continued to execute its
retention strategy, which includes two pillars –
engagement and development – that nurture and
support career growth so that employees remain a
valued part of Hudbay’s team for as long as possible.
Under the engagement pillar, the main focus in 2020
was on ensuring our employees had a safe and healthy
work environment. To understand what employees
needed as they adjusted to working from home or new
shift schedules, we conducted surveys and had
one-on-one conversations. Many of our work–life
balance programs and communications moved to a
virtual platform, and these were updated to
incorporate work environment changes due to
COVID-19. We called more than 800 employees
individually to see how they and their families were
coping with the challenges of the pandemic. To provide
emotional and psychological support, we established a
support line staffed by mental health specialists that
anyone could call whenever support was needed.
Part of the engagement strategy is to improve
everyone’s understanding of Hudbay’s business and
why each person plays an important role in helping
the Company achieve its business objectives. In 2020,
the business unit co-created a “WHY we work”
statement, interviewing more than 60 employees
about their experience working for Hudbay. The
insights from those interviews were used to develop a
formal purpose statement for Hudbay Peru that will
be communicated to employees in early 2021.
Under the development pillar of the strategy, we
continued to identify growth and career development
opportunities. Highlights in 2020 included:
• 116 people participated in the third edition of our
five-day online course called “Mining One-on-One”.
The course is for non-mining employees who
want to learn more about mining activities.
Six operational leaders spoke on topics such as
the mining process, mineral processing, mine
feasibility and planning, and strategic planning.
• 430 employees received at least one hour
of training.
• 57 employees were promoted during the year,
including 16 employees from the communities
of Uchucarcco and Chilloroya.
At the end of the year, we developed a formal
recognition program – COBRE (Spanish for “copper”) –
to recognize the valuable contributions of team
members. We highlight COBRE in the Recognition
Program in Peru Aims to Increase Employee
Engagement case study.
Collaborating with Our Unions
The collective bargaining agreement between Hudbay
and the Unified Workers Union of Constancia
(SUTRAMICOH) establishes the working rules and
other terms and conditions of employment that apply
to approximately 34% of the employees in our Peru
Business Unit. Since signing the agreement in 2017,
Hudbay and the union have been committed to
achieving common objectives and strengthening the
relationship between management and union
leadership. This commitment continued in 2020 as we
worked together on shift schedules, accommodations
and protocols designed, first and foremost, to keep
people healthy and safe and the Constancia site
COVID-free.
In late 2020, Hudbay and SUTRAMICOH began
negotiations on a new collective bargaining
agreement as the current agreement expired at the
end of the year.
The Peru Business Unit’s safety performance
continued to be strong, with no lost time injuries (LTI)
during the year at the mine site or office locations.
However, as stated in the letter from Hudbay CEO
Peter Kukielski, an individual, who was a passenger in
a company vehicle driven by one of our employees,
was killed in a tragic accident.
In early 2020, Constancia inaugurated a new training
facility that trains employees on managing the critical
risks faced at the site. During the year, more than
600 employees and contractors participated in courses
on risks related to working at heights and in confined
spaces, performing “hot” works (e.g., welding, grinding),
energy isolation, cranes and lifting, and excavation
and digging trenches.
Other key safety initiatives – the Visible Felt
Leadership and Visible Remote Leadership programs,
safety induction and job-specific training, and monthly
safety and occupational newsletters – continued
throughout the year. Employees and contractors
completed more than 25,400 hours of health and
safety induction training and nearly 55,000 hours
toward the annual occupational health and safety
training requirement.
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Arizona and Nevada
At the end of 2020, we had 22 full-time permanent
employees in our Arizona Business Unit.
The team in Arizona is primarily focused on addressing
the legal matters related to the Rosemont project,
maintaining environmental monitoring obligations,
engaging stakeholders, supporting exploration of
potential satellite deposits on our claims near Rosemont,
and advancing the Mason project in Nevada. When the
Rosemont project moves forward with development,
we expect that more than 2,500 people will be
employed in its construction.
Our Mason project is located on a site that includes
more than 100 historic mining and exploration
hazards, including shafts and adits (entrances to an
underground mine) that pose a safety risk. Some of
these hazards have been fenced off. In the fall, we
commenced a program to fence or re-fence every site
that posed a risk, beginning with the sites that are
most easily accessible and ending with those that are
more remote. For this project, we prioritized the
hiring of tribal members to perform the work.
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SOCIAL IMPACT
Hudbay’s goal is to have a positive impact and help local communities near our
operations thrive throughout the life of a mine. We invest in socio-economic
development opportunities that help local communities contribute to and benefit
from our presence; partner and collaborate to stimulate opportunities that support
livelihoods and infrastructure needs; and work to build lasting relationships with
those who live near our operations or are impacted by our activities.
HIGHLIGHTS
$222.8 million
paid in employee
wages and benefits
LOCAL PROCUREMENT
($ millions)
COMMUNITY INVESTMENTS
AND CHARITABLE DONATIONS
($ millions)
$5.3 million
in community investments
and charitable donations
2017
2018
2019
2020
2017
2018
2019
2020
$49.8
$54.0
$58.8
$45.3
$6.4
$5.1
$8.1
$5.3
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Collaborating to Help Reactivate the Economy
and Build Capacity Among Women in Rural Peru
The “Tikary: Bordando el futuro” (“Embroidering the
future”) project – a collaboration among Hudbay,
Compañía de Minas Buenaventura and three social
entrepreneurs – was launched in 2020 to help reactivate
the economies of the communities near our Constancia
operation. The project, which was coordinated through
the Peru Mining Innovation Hub with resources from
the Inter-American Development Bank (IDB), built
capacity among women in the communities through a
new mask manufacturing business.
Among the project’s activities were the following:
• Tailoring workshops in each community
• Virtual workshops to co-create designs inspired
by the communities’ flora and fauna
• Training in sewing and embroidery and developing
entrepreneurship and marketing skills to ensure the
business is sustainable and autonomous
• Establishing an e-commerce site and creating
Instagram and Facebook accounts to market and
promote the business
Today, Tikary is a sustainable business, with more
than 40 women from the communities of Velille,
Chilloroya and Ccochaccasa producing ergonomic,
safe and fashionable face masks. In 2020, Tikary
produced more than 1,000 masks, and its online store
at www.tikary.com continues to attract customers
looking for a fashionable product that has a unique
history and is produced by courageous women,
who were unafraid to learn and collaborate during
a pandemic.
In August, the ProActiva 2020 Awards ranked the
project second in its Large Mining category,
recognizing the project’s alignment with the UN
Sustainable Development Goals (Goal 1 to end poverty
and Goal 8 to provide decent work and economic
growth) and the efforts of mining companies and their
collaborators to find innovative ways to protect health
and support economic continuity amid a pandemic.
Tikary is a sustainable
business, with more
than 40 women from the
communities of Velille,
Chilloroya and Ccochaccasa
producing ergonomic, safe
and fashionable face masks.
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Building the Foundation for Long-Term Constructive
Relationships in Nevada Based on Mutual Respect
One key lesson we have learned in exploring,
developing and operating mines is the importance
of early engagement with key stakeholders.
Fostering relationships based on trust with the
communities near our exploration activities has been
at the heart of our approach to earning our social
licence to operate for many years. In Peru, our team
has built a reputation for Hudbay as a leader in
community relations, and in Manitoba, Hudbay has
developed strong relationships with the local and
Indigenous communities near our operations.
At our Mason project in Nevada, we are applying these
same proven stakeholder engagement principles to
those who have expressed interest in the project. This
includes outreach to and meeting with nearby Native
American tribes.
Despite the COVID-19 pandemic, which impacted
many planned stakeholder engagement initiatives in
2020, we conducted several virtual activities, including
presentations at tribal council meetings and meeting
with the tribes’ chairs and vice-chairs. Although the
Mason project is still in the exploration phase and
years away from being developed into an operating
mine, the engagement is crucial for developing an
understanding of needs, concerns and interests and
identifying the mutual benefits that can be realized by
working together.
In 2020, we established a scholarship program with the
Yerington Paiute, whereby the tribe selects the
recipient to develop the knowledge and skills needed
by the community (e.g., health care, social services,
business development). Hudbay provides the
scholarship recipient financial support for up to four
years. Similar programs are being discussed with the
Walker River Paiute and the Washoe Tribe of Nevada
and California.
As the Mason project progresses, we hope to grow the
scholarship programs to provide more educational
opportunities to tribe members.
One key lesson we have
learned in exploring,
developing and operating
mines is the importance
of early engagement with
key stakeholders.
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Our Approach
Economic Contributions
We contribute to sustainable development by
providing jobs, contracting with suppliers, paying taxes
and royalties, and supporting socio-economic programs
and infrastructure priorities that address the challenges
most relevant to the communities in which we operate.
Under our Code of Business Conduct and our
Statement on Anti-Corruption, all government
payments must comply with the laws of the
jurisdictions where we operate, including Canada’s
Corruption of Foreign Public Officials Act, the US
Foreign Corrupt Practices Act and Peru’s anti-
corruption legal framework. We support global
initiatives to improve revenue transparency and fight
corruption. The Extractive Industries Transparency
Initiative (EITI) aims to enhance revenue transparency
and accountability in the extractive sector, and as a
member of the Peruvian Mining Society, we support
the EITI process in Peru, where the government has
implemented significant aspects of the EITI
requirements and is fulfilling its broader objectives. In
Canada, the government’s Extractive Sector
Transparency Measures Act (ESTMA) provides an
equivalent level of reporting to the EITI standard. In
accordance with the Act, we filed our annual ESTMA
report, which details our government payments for
the 2019 fiscal year, in September 2020.
Community Relations
The strength of our relationships with the
communities near our operations, projects and
exploration sites is closely connected to our ability to
conduct mining activities. Our reputation as a leader
in community relations in Peru – a country with a
history of civil dissent due to lack of trust in
authorities and disputes over equitable resource
development – is evidence of our efforts to develop
an understanding of local stakeholder needs and
concerns. In Canada, the mining industry prioritizes
partnerships with communities, and our aim is to build
meaningful relationships with First Nations
communities that help us earn social acceptance and
navigate potential conflicts that may arise.
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The processes and requirements for strengthening
relationships throughout the life of a mine are
described in our Stakeholder Engagement Standard. All
operations, development projects and exploration sites
are required to identify relevant stakeholders, conduct
analyses, and create stakeholder engagement plans
that establish mutually acceptable processes with
communities that are impacted by, or have an interest
in, our exploration and mining activities. Site-based
community response mechanisms are accessible for
local stakeholders to record complaints and grievances.
We investigate all such matters to provide timely
resolutions and remedies, as appropriate.
Indigenous Engagement
We respect the cultures and heritage of all
communities near our operations and activities, and
recognize their distinct rights, culture and history as
well as the unique connections that Indigenous
peoples have to the land and water.
At our operations and exploration sites, we develop
archaeological monitoring and cultural resource plans,
in consultation with relevant community members
and groups, to identify and protect cultural artifacts
discovered at our sites.
As part of our membership in the Mining Association
of Canada, we apply the Towards Sustainable Mining
(TSM) Aboriginal and Community Outreach Protocol to
assess and measure our performance in the area of
engaging communities of interest (including
Indigenous groups) in meaningful dialogue and
decision-making. The latest TSM Indigenous and
Community Relationships Protocol, which was
adopted in late 2019, adds criteria testing that
assesses good faith efforts to obtain free, prior and
informed consent (FPIC) of Indigenous peoples directly
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affected by new projects and expansions. It also
incorporates Canada’s Truth and Reconciliation
Commission’s Call to Action 92.iii, which urges
businesses to educate personnel on Indigenous history
and provide skills-based training on intercultural
competency and human rights. In accordance with the
scheduled implementation timeline for the revised
protocol, we completed gap assessments in 2020 and
will begin reporting on the revised protocol in 2022
using 2021 performance data.
Our management approach and reporting against
this protocol help advance two UN Sustainable
Development Goals – Goal 11 (Sustainable Cities and
Communities) and Goal 17 (Partnerships for the Goals) –
by contributing to local development and working with
communities to identify opportunities for education,
training, employment and business development.
Local Hiring and Procurement
Employment and business opportunities are high
priorities for the communities where we operate.
Maximizing local employment and building capacity
among local workers and suppliers not only generates
economic benefits and creates stronger relationships,
but it also aligns with our diversity and inclusion
commitments and builds a greater mutual
understanding between Hudbay and the communities
near our operations.
Under our Local Procurement and Employment
Standard, each site identifies opportunities for hiring
and sourcing goods and services from local
communities. We engage local stakeholders and often
incorporate commitments related to employment and
business opportunities into formal community
agreements. We also support government programs,
as well as opportunities prioritized by the
communities, to build local capacity and skills for both
mining jobs and other livelihoods suitable for the
community. This includes investing in agricultural
industries, training and skills development programs
conducted by Hudbay, and partnering with universities,
technical institutes and other organizations.
Community Development
Our presence in a community can stimulate social and
economic development, help diversify the local
economy and strengthen resiliency.
Early in the mine lifecycle, we engage the
communities in order to understand their social and
economic priorities and support the programs that
address their needs and ambitions. This may result in
formal community agreements that detail our
commitments. For example, in Peru we have entered
into formal community investment agreements with
some communities. These agreements detail our
commitments to invest in health, education, business
development and infrastructure needs. Multi-
stakeholder committees, which include Hudbay and
local representatives, approve and oversee the
projects specified in the agreements. We work with
government agencies, community development
organizations and other partners that have the
expertise and knowledge to strengthen the
effectiveness of these programs.
Our Community Giving and Investment Standard
outlines the requirements and process for
contributions and investments. It emphasizes
community involvement, mutual benefits and
partnerships. These investments are largely focused
on infrastructure and socio-economic development
initiatives that build resiliency, advance sustainable
livelihoods, and help communities avoid dependency
on the mine during operations and after closure.
At the corporate level, we apply the Community Giving
and Investment Standard through our Corporate Office
Giving Plan. Under the plan, Hudbay offers employees
one paid day off each year to volunteer, matches
certain employee donations, and supports capacity
building in disadvantaged communities. In 2020,
Hudbay supported Youth Without Shelter (YWS) – a
Toronto-based charitable organization that provides
shelter, education and training to homeless youth – by
participating in the 10th annual Time4Change event,
which raised funds to support several YWS programs
that enable homeless youth to move to stable,
independent living. Because YWS had to cancel several
fundraising events due to the COVID-19 pandemic,
Hudbay’s corporate office employees raised $7,000,
which was matched on a two-for-one basis by Hudbay
and Hudbay’s President and CEO, Peter Kukielski, for a
total contribution to YWS of around $35,000. Our
corporate Diversity and Inclusion Committee also
directed Hudbay’s contribution to Pathways to
Education, which helps youth in low-income
communities graduate from high school, and to Second
Harvest, Canada’s largest food rescue charity with a
vision of “No waste. No hunger.”
Resettlement and Land Use
We seek to avoid the need for resettlement. However,
when resettlement is unavoidable, we engage with
those impacted – and with communities, governments
and other key stakeholders – and follow a process that
adheres to international standards. This includes IFC
Performance Standard 5, which advises companies to
minimize adverse impacts on those displaced through
measures such as fair compensation and ensuring that
those affected are actively consulted and participate
in the process.
In 2020, we did not resettle any individual homes.
However, in Peru, pre-development activities at the
Pampacancha deposit impacted the livelihoods of
those engaging in informal mining and farming in the
area. We are adhering to international standards to
determine how best to assist those whose livelihoods
may have been impacted.
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Manitoba
In December 2020, we reached a long-term camp
agreement with the town. The new agreement spans
the life of the Snow Lake operations and involves
expanding the footprint to accommodate the
relocation of trailers from the old camp to the new
camp and the establishment of a new permanent
dormitory, a new business development park and
more extensive parking facilities.
In addition, Hudbay is supporting the Town of Snow
Lake with a $2 million investment in the development
of a new 30-lot subdivision in English Bay, which will
help the town to create more permanent housing
solutions for the community.
This is a significant achievement as it will help provide
multiple living arrangement options for new
employees and their families as Hudbay transitions
to a larger operation in Snow Lake in 2022.
We also worked with the town on a project to upgrade
the entire water system so that the water Hudbay
uses for operations doesn’t impact the community
water system.
Engaging with Indigenous
Communities
An important aspect of our commitment to diversity
and inclusion is our engagement with the Indigenous
communities of interest (COIs) and other stakeholders
near our mining operations and exploration activities
in Manitoba.
Our dedicated Indigenous Liaison Officer (ILO)
works to build mutual understanding and positive
relationships between Hudbay and the Indigenous and
First Nations communities near our operations. The
Manitoba operations have stakeholder engagement
plans, and the ILO supports the Indigenous-specific
strategy and activities.
In Manitoba, Hudbay has discovered 26 mines and
successfully reclaimed 20 mines over the past 90 years,
and currently operates two mines – 777 and Lalor.
We recognize the positive socio-economic impact
our activities can have on the communities near
our operations, as well as the challenges that occur
when mining operations cease. We are committed
to building long-term relationships, creating
partnerships and developing programs to ensure
a lasting, positive impact.
Preparing for Closure Impacts
and Transition
Hudbay has had a significant presence in Flin Flon,
Manitoba, for more than 90 years, contributing
significantly to the economies of Flin Flon and
Creighton. Despite efforts to maximize the existing
assets in Flin Flon and maintain a presence that
supports jobs and the broader economy, mining
operations at the 777 mine will cease in the middle of
2022, at which time most activities at the Flin Flon mill
and zinc plant will also cease.
A key aspect of our closure planning is engaging the
community on a plan to support the social and economic
transition. In 2020, we continued a process that began
in 2016, meeting with the nearby communities’ mayors
and local officials to update them on our closure
activities and discuss opportunities to minimize the
impacts of closure to the greatest extent possible.
When operations cease in Flin Flon, our presence in
Flin Flon will include about 100 people for care and
maintenance, concentrate handling, fabrication,
administrative, exploration and environmental
activities. We will continue to seek opportunities
that could leverage the facilities that remain on care
and maintenance. However, we are ramping up our
operations in Snow Lake with the restart of the
New Britannia mill and increased production at Lalor,
and we expect to increase the Snow Lake Hudbay
workforce by around 50%. As we build a future in
northern Manitoba that is centred around our
activities in Snow Lake, we also need to expand our
physical footprint to accommodate larger mining and
milling operations.
After a kitchen fire at the old camp located near the
New Britannia mill in the summer of 2019, the Town
of Snow Lake worked with Hudbay to set up a new
temporary camp. Over the course of the year, we met
regularly with the town council to discuss potentially
making this the permanent camp.
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In support of our Indigenous engagement strategy,
we aim to meet with the Indigenous communities and
COIs near our operations at least twice per year to
improve our understanding of their concerns and
capacity. In 2020, our in-person engagement activities
came to halt in early March due to the COVID-19
pandemic. Because many of these communities went
into lockdowns, our outreach through the remainder
of the year was limited. In place of the community
visits, we sent out letters in April and October that
provided updates on Hudbay’s activities and checked
in to see if the communities needed any support.
Fostering economic opportunities is a key element of
our engagement strategy. In addition to job fairs, we
have an Indigenous training-to-employment project at
Lalor that we discuss in the Our People section of this
report. Through our northern procurement policy, we
aim to increase opportunities for Indigenous
contractors or Indigenous-owned businesses to work
with Hudbay, and our economic development
workshops ensure potential Indigenous suppliers
understand our local procurement standards and
processes. Although many of these programs and
activities were impacted in 2020 due to the pandemic,
we plan to restart these efforts as soon as the
communities are ready to do so. Of the $50.7 million
in payments to suppliers in northern Manitoba and
northwest Saskatchewan in 2020, approximately
$2.1 million was awarded to Indigenous businesses.
Canada’s Truth and Reconciliation Commission’s Call
to Action Recommendation No. 92 directs
corporations to play a role in reconciliation through
actions and participation in events that build cultural
awareness and mutual understanding. In support of
this action, our ILO holds eight-hour interactive
cultural awareness workshops at our operations in Flin
Flon and Snow Lake and offers to conduct workshops
for external organizations as well. Indigenous elders
are invited to participate in the workshops to improve
employees’ understanding. The goal is to hold
workshops each quarter (for a total of eight during
the year), but in 2020 we held only four workshops
(two at each operation) – in March before the
shutdown and in September when cases had levelled
off. We also held a workshop with Northlands College
located in Creighton, Saskatchewan, in February.
Other planned cultural awareness programs and
activities include:
• Inviting traditional knowledge holders (i.e., those
who can provide a cultural and experience
perspective) to help assess the impacts of our
activities on the environment
• Partnering with the Flin Flon Aboriginal Friendship
Centre to hold Mino Pimatisiwin (“a good way of
life”) sweat lodge ceremonies and inviting
employees to participate
• Offering mine tours to Northlands College
students to showcase the various careers available
at our operations
• Working with elders on ways to celebrate
Indigenous Peoples Day with employees and
community members (e.g., picking sacred medicine
plants, participating in a smudge ceremony)
Although no activities took place in 2020 due to
community shutdowns and COVID-19 restrictions, we
hope to resume these activities in 2021.
We maintained our bronze certification level for the
Canadian Council for Aboriginal Business’s (CCAB)
Progressive Aboriginal Relations (PAR) program. The
PAR program verifies and benchmarks corporate
performance in Indigenous relations in Canada across
four areas: employment, business development,
community investment and community engagement
For the 2019 TSM Aboriginal and Community
Outreach Protocol, our Manitoba Business Unit
received an A level rating for response mechanisms
and COI engagement and dialogue, and an AA rating
for reporting and COI identification.
2020 Community Activities
The Manitoba Business Unit has a donations committee
that reviews donation requests and allocates $150,000
in community contributions each year. In 2020, major
contributions during the year included:
• $483,000 to various Flin Flon and Snow Lake
community organizations, resource centres and
food banks to help battle the COVID-19 pandemic
(matching the $20,000 donation made by Wheaton
Precious Metals)
• $25,000 toward Indspire, an Indigenous-led
charitable organization that invests in education for
Indigenous people, including scholarships to
Indigenous students from Ontario and Manitoba
There was a total of 135 complaints registered in
2020, of which 130 were union labour grievances and
five were community grievances related to concerns
about dust, noise, the environmental performance of
a contractor, and the speed of one of our ore trucks.
Labour grievances related to collective agreements
are managed through a different process than that
used to address community grievances.
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Peru
In Peru, our commitment to creating shared value
and building strong, long-term relationships with
the communities near our operations and with other
key stakeholders is evidenced by the more than
20 agreements we have entered into with local
communities and governments since 2011.
Working with Communities
on Growth Opportunities
At our Constancia operation, we work to build shared
value by formalizing short-term and long-term
commitments through stakeholder agreements at all
levels – national, regional, provincial, district, local and
community. These agreements go beyond providing
local jobs and business opportunities and articulate
the long-term vision for the communities. This
includes supporting efforts to bring the resources of
the national, regional and local governments closer to
the communities, and partnering with organizations
that have the expertise needed to deliver the
programs the communities have prioritized.
We applied this approach to reach agreements with
multiple communities and individuals to develop the
Pampacancha deposit near Constancia.
At the end of 2020, we successfully concluded an
additional consultation process with the Peruvian
government and Chilloroya community under Peru’s
Consulta Previa law. The law details steps and
processes that companies must take to ensure
Indigenous peoples and other ethnic groups in Peru
have access to information and are able to participate
in the process for evaluating projects that take place
in their territory and may impact them. Although the
pandemic created challenges due to the need to
consult with community members in person, we
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ensured all meetings had strict health and safety
protocols in place. The process concluded with a
majority of Chilloroya community members approving
of the Pampacancha project.
Supporting Our Neighbours and
Colleagues During the Pandemic
Although the COVID-19 pandemic impacted many of
the planned community engagement activities and
socio-economic development programs and projects,
Hudbay’s team in Peru quickly adapted its approach to
focus on the communities’ most pressing needs.
Because around 40% of our employees are from the
local communities, a significant focus was on keeping
the virus out of the mine site and ensuring no workers
had the virus before returning to their communities at
the end of their rotation. Under our comprehensive
COVID-19 health protocols, before going to the mine
site, all personnel quarantined at a hotel and only
those with negative molecular test results were
admitted to the mine site. After each rotation,
workers quarantined again and underwent testing to
ensure they were able to safely return to their
communities. If any workers needed to quarantine or
isolate for a longer period due to a positive test or
possible exposure, workers continued to receive pay.
We partnered with Wheaton Precious Metals to
procure and provide critical supplies and equipment –
including rapid and molecular COVID-19 tests, oxygen
tanks, pulse oximeters, thermometers, masks and
portable and fixed ventilators – to the Chumbivilcas
Health Network. As part of an agreement with the
Regional Directorate of Health Cusco (DIRESA) and
the District Municipality of Livitaca in the Chumbivilcas
province, we donated an ambulance and nine oxygen
tanks to the district health centre’s COVID Command
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to help quickly transport patients to local medical
centres and hospitals. To address families facing food
security issues, we delivered more than 60 tonnes of
basic necessities, including rice, sugar and noodles, to
seven rural communities in the Chumbivilcas province.
Although the change in protocols at Constancia
did impact some local businesses in Chilloroya
(e.g., equipment rentals, laundry providers,
restaurants, service stations), we worked to minimize
those impacts as much as possible while also
identifying opportunities to reactivate the economy.
One such opportunity is the “Tikary: Bordando el
futuro” project – a new mask manufacturing business
for women from the communities of Velille, Chilloroya
and Ccochaccasa. This project is highlighted in the
Collaborating to Help Reactivate the Economy
and Build Capacity Among Women in Rural Peru
case study.
Improving Access to Health Care
Our approach to helping the region mitigate the
impacts of COVID-19 includes strengthening the
broader health system for generations to come.
We are working with Peru’s Ministry of Health to build
a more robust telemedicine system, which is one
of the objectives under our second “Work for Taxes”
project – an integrated health system for the province
of Chumbivilcas.
Peru’s “Work for Taxes” is an innovative public–private
funding mechanism that allows companies to pay a
portion of income taxes in advance by funding public
works and then receiving a tax certificate for 100% of
the investment once the project is delivered. In 2020,
development of the health system began. The project,
which is supported by Peru’s Ministry of Health,
includes rural health care, transportation
(e.g., ambulances) and telemedicine.
Another important project is a new hospital in the
town of Santo Tomás in the Chumbivilcas province.
Several years ago, Hudbay financed a pre-investment
study for the hospital. Although the study took several
years, in 2020 Peru’s Ministry of Health approved the
study and agreed to finance the construction of the
hospital. The Regional Government of Cusco is
developing the technical document that is required
under Peru law, and construction is expected to begin
in 2022. Once completed, the hospital will significantly
improve the quality of health care for more than
83,000 people living in the province.
2020 Community Activities
We invested more than $4.6 million to support a wide
range of community programs.
There were 59 grievances registered in 2020. Of the
total, 21 were related to procurement matters
between Hudbay and its suppliers, including issues
related to delays in payments or reimbursements.
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Arizona and Nevada
Maintaining Relationships in Arizona
The combination of the COVID-19 pandemic and legal
challenges halting the development of our Rosemont
copper project resulted in reduced in-person
engagement activities with the nearby communities
of Green Valley, Sahuarita, Vail and Tucson. However,
we continued to engage virtually with stakeholders,
including regulators, elected officials and business
leaders, and addressed stakeholders’ questions or
issues as they arose.
Building Foundation of Relationships
Built on Trust at Mason
We held several stakeholder engagement events
during the year at Mason – our advanced exploration
project located approximately 85 kilometres
southeast of Reno, Nevada, in the prolific Yerington
Copper District. With the project still in the
exploration stage, the goal of our stakeholder
engagement at Mason is to establish open lines of
communication and build a mutual understanding on
how best to express concerns, share interests and
discuss opportunities.
Before the COVID-19 pandemic, we held meetings
with city and county administrators, Native American
tribal leaders and other stakeholders with an interest
in the project. Engagement continued throughout the
year, with video conferencing and other forms of
electronic communications replacing face-to-face
interactions. In August, we held two virtual open
houses to share an update on project plans and hear
from participants on the issues they cared about to
help us focus on areas of concern. We promoted the
events on our social media channels and through the
local chamber of commerce. A replay of the open
house and responses to the more frequently asked
questions were posted to the Hudbay Mason Project
Facebook page. Many of the questions were related
to protecting water sources, noise and dust impacts
from blasting, and safety and environmental concerns
related to historical mining sites in the area.
In September, we launched a fencing project to safely
isolate any hazards on the Mason property related to
historic mining, and hired and trained three members
from the local tribes to complete the work.
In 2021, we hope to work with these tribes to identify
any important cultural sites at Mason so that the site
design avoids, minimizes or mitigates potential
cultural impacts.
2020 Community Activities
In 2020, we invested $93,000 to support a wide range
of community programs in Arizona and Nevada.
Along with the scholarships established with the
Yerington Paiute discussed in the Building the
Foundation for Long-Term Constructive
Relationships in Nevada Based on Mutual Respect
case study, we continued our support of the Hudbay
Rosemont Copper School Grant Program, which awards
between $500 and $5,000 to local school STEEAM
(Science, Technology, Engineering, Environment,
Agriculture and Math) programs. In 2020, we awarded
eight grants totalling around $8,000. We also
contributed $7,000 to food banks in the communities
near our Rosemont and Mason projects.
No complaints at the Rosemont or Mason project
were formally registered through our grievance
system in 2020.
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ENVIRONMENT
We aim to develop, operate and close mines in a manner that
demonstrates our commitment to environmental stewardship.
This requires applying best practices, complying with all
applicable environmental laws and regulations, and investing
in new technologies and innovative approaches.
TOTAL FOOTPRINT (SURFACE TENURE)
(hectares)
North
America
South
America
Total
2017
2018
2019
2020
HIGHLIGHTS
5.2%
decrease in energy
consumption
More than half of our indirect energy
consumption is from renewable sources
Hudbay’s Mason project received
a 2020 Nevada Excellence in
Mine Reclamation Award
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Total Energy Consumption1
(indirect and direct)
Total energy (terajoules)
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Energy sources as percent of total energy
Propane (direct)
Diesel (direct)
Gasoline/other non-renewable (direct)
Electricity (indirect)
Non-renewable and renewable indirect sources as percent of total energy
Hydro-generated electricity
Other renewable source electricity
Non-renewable source electricity
2020
7,812
2019
8,327
2018
8,399
2017
8,311
8%
19%
0%
73%
57%
N/av
16%
7%
22%
0%
71%
54%
N/av
17%
9%
21%
0%
69%
53%
N/av
17%
8%
24%
0%
68%
53%
N/av
15%
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1 The proportion of hydro-electric energy is a conservative estimate based on US Energy Information Administration (EIA) data for Peru electrical generation and Manitoba Hydro and
Manitoba government reporting. The EIA data shows overall Peru electrical generation to be 56% hydro for 2017 to 2019 – we have used 50% and not included other renewable
sources (4% to 6%) because we do not know the exact grid mix. The Manitoba data shows 97% hydro generation and 2.5% other renewable – we have continued to use 96% hydro
from earlier information sources as the dates of the 97% are not clear. We continue to seek clear, up-to-date information on the grid mix so that we can refine this analysis.
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Reducing Fresh Water Use and Lowering Energy Costs in Manitoba
Because some of Hudbay’s environmental performance
metrics are impacted by factors outside of our control
(e.g., weather), we are working toward establishing and
measuring efforts to improve our eco-efficiency across
four areas – energy use, greenhouse gas intensity
of our energy supply, water, and mineral waste and
land disturbed.
One effort that reflects Hudbay’s goal to identify
eco-efficiency measures is at our Stall mill in Snow Lake.
Todd Boyd, who is the Manager of both the Stall and
New Britannia mills and previously worked as the
Chief Powerhouse Engineer at Flin Flon, has been
working with the team at Stall mill to reduce the use
of fresh water. One opportunity they identified was to
modify the water pumps. Now, rather than turning on
the pumps and flowing fresh water at the same rate
regardless of whether 100% or 95% is being used,
new variable frequency drives (VFD) allow the team to
adjust flow rates to meet processing demands. Since
installing the equipment, the average fresh water use
at the Stall mill has decreased by around 18%.
Access to fresh water sources is not a concern in
northern Manitoba, and at Stall mill our water
management practices focus more on managing
excess water, rather than a lack of water. However,
when fresh water is used during ore processing with
chemical agents, it becomes contact water that must
be treated with reagents and chemicals. Less fresh
water used means that fewer resources (and less
money) are required to treat the water.
Pumping only the fresh water needed also
significantly reduces the amount of time the energy-
intensive industrial pumps need to run. This results in
notable energy cost savings and reduces the resources
needed to repair and maintain the pumping systems
since the pumps are not running as much as before
the VFDs were installed.
We are working toward
establishing and measuring
efforts to improve our eco-
efficiency across four areas –
energy use, greenhouse gas
intensity of our energy supply,
water, and mineral waste and
land disturbed.
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Water Harvesting Projects Aim to Provide Community with Sustainable Water Source
also includes a focus on building the community’s
sustainable water management capacity through
training and consulting services and through
partnership with governmental agencies and other
support organizations.
to locate the three water harvesting points. In 2021,
we hope to advance the studies and formalize
agreements with the Cusco government and other
organizations in support of constructing the water
harvesting infrastructure in Chilloroya.
Beginning in 2019, we engaged the Chilloroya
community to discuss water harvesting options, such
as building one large reservoir or building smaller, but
multiple, points of water harvesting. Based on tests
and research performed by external water
management consultants, in 2020 the community
selected the three points of water harvesting option
as the one that will best support Chilloroya’s water
management objectives.
Upon obtaining this approval, Hudbay reached out to
the Water Management Institute of Cusco for support
on research in the Chilloroya area to study where best
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The Cochapampa bog serves as a vital water source
for agriculture and livestock in Chilloroya, a small
community near our Constancia operation in Peru. The
bog, which is categorized as a wetland, is also habitat
for a variety of unique species of plants and animals,
and it is essential for maintaining the health of the
region’s ecosystem.
Because the development of the Constancia mine
impacted some of the Cochapampa bog areas, years
ago we engaged the community in developing a plan
to compensate users for the impacts and maintain the
ecosystem services for Chilloroya. One of the key
elements of this plan is the Cochapampa Bog
Sustainable Use and Management program, which
aims to minimize the impacts to the wetlands while
helping the community and land users improve their
water management practices through investments in
water catchment and harvesting systems. The plan
Because the development of
the Constancia mine impacted
some of the Cochapampa bog
areas, years ago we engaged
the community in developing
a plan to compensate users
for the impacts and maintain
the ecosystem services
for Chilloroya.
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Our Approach
Hudbay’s commitments to explore for and mine
minerals and metal in a manner that safeguards the
environment are expressly stated in our
Environmental Health and Safety Policy. The policy
requires all operations and exploration sites to avoid
or mitigate adverse effects on the environment,
comply with the laws and regulations in each
jurisdiction where we operate, and maintain (or
achieve within two years of commencing production)
an environmental management system that is
certified to the ISO 14001 international standard.
All of our operating locations’ management systems
align with the requirements stated in the Mining
Association of Canada’s (MAC) Towards Sustainable
Mining (TSM) environmental protocols and
frameworks. As a member of MAC, we commit to
annually review the effectiveness of our approach by
assessing our performance against the TSM protocols
at our Canadian operations, and we voluntarily do so at
our Constancia operation in Peru. The goal is for each
facility to achieve a level A or higher (on a five-point
scale, from level C to AAA) for all protocol indicators
within two years of reaching commercial production or
beginning operations under Hudbay’s control.
As a mining company, Hudbay is subject to many
regulations at the local, state and national level in all
of its jurisdictions of operation. These regulatory
standards establish specific requirements for how we
operate, while our standards provide guidance for
meeting environmental performance expectations
beyond simply achieving regulatory compliance. Our
standards, along with the TSM protocols and other
international standards we follow, support a common
approach across our operations to achieve the level
of performance expected by our communities and
other stakeholders.
Our performance is also reflected in eco-efficiency
improvements – that is, those productivity and
efficiency enhancements that often go hand in hand
with better environmental management practices.
For example, reduced fresh water use and higher
recycling/reuse rates help lower costs and reduce
maintenance requirements, and optimizing haul truck
routes lowers fuel costs and GHG emissions.
Land and Biodiversity
We recognize that our business activities can impact
biological diversity, and stakeholders rightly expect us
to maintain healthy ecosystems and conserve
biodiversity throughout the mine lifecycle.
The objective of our Biodiversity Conservation
Standard is to positively contribute to biodiversity.
Each site must identify environmental conditions
specific to each location – such as threatened and
endangered species, protected areas and critical
habitat – and the potential impacts that Hudbay’s
activities may have on biodiversity and ecosystem
services. Site-specific biodiversity and ecosystem
services management plans must apply the following
four key steps of the mitigation hierarchy:
1. Avoid impacts by locating facilities and
infrastructure away from significant biodiversity
aspects and critical habitats;
2. Minimize impacts through the use of appropriate
management systems, mine designs and operating
plans that limit land disturbance throughout the
mine life;
3. Restore ecosystems by progressively rehabilitating
affected areas during operations and at closure to
mitigate the impact over time through preservation
or maintenance; and
4. Offset residual impacts through programs to
compensate for biodiversity losses by enhancing
ecosystems in nearby areas.
Our standard aligns with, and supports our
implementation of, the TSM Biodiversity Conservation
Management Protocol, and the IFC Ecosystem
Services Performance Standard. Included in the
protocol are commitments to engage with
communities of interest about biodiversity policies
and practices, comply with the requirements of legally
designated protected areas, and not explore or mine
in World Heritage sites.
Following our standard helps advance UN Sustainable
Development Goal 15 (Life on Land) by working with
communities and organizations to take action on
preventing the loss of biodiversity and preserving
healthy ecosystems.
Climate Change
Climate change – and society’s impact on the
environment – is increasingly becoming a central issue
for governments, communities and businesses around
the world. Mining and mineral processing are energy-
intensive activities, and Hudbay recognizes its
responsibility and role in combatting climate change.
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Our efforts are largely focused on two key areas:
mitigating greenhouse gas (GHG) emissions and
preparing for impacts through adaptation plans.
Hudbay’s near-term approach to GHG mitigation is
to focus on the energy efficiency of its operations.
Although it is difficult to establish a “baseline” of
energy efficiency due to the variability in our
operational inputs (e.g., mining deeper or further and
changes in ore composition) and factors beyond our
control (e.g., extreme winter conditions in northern
Manitoba), Hudbay is committed to identifying and
pursuing economically viable opportunities – such as
the one discussed in the Reducing Fresh Water Use
and Lowering Energy Costs in Manitoba case study –
that improve energy efficiencies and reduce GHG
emissions at our operations. We are also developing
a process that takes various factors and complexities
into consideration for tracking our eco-efficiency
performance. One program under consideration
involves integrating into our capital approval process
an evaluation of the investment’s impact on our
water consumption, energy use, GHG emissions and
land footprint.
Because our direct GHG emissions are largely related
to mobile equipment, we recognize that future fleet
replacements will need to consider alternative energy
sources. All the electricity at our operations is supplied
by third parties via regional grids. In Manitoba, nearly
all of the electricity produced is through renewable
hydropower, and in Peru 50% is from renewable sources.
To ensure we adapt our operations to the risks posed
by climate change, we conducted a preliminary risk
analysis of our facilities, which showed that the
potential impacts are manageable at this time.
However, the potential for more frequent and
extreme weather events requires that our analyses
and efforts around biodiversity and overall
environmental management need to evaluate climate
adaption options.
In alignment with the TSM Energy and GHG Emissions
Management Protocol, we annually report on the
processes, management systems and reporting
mechanisms we have in place to effectively manage our
energy use and GHG emissions. Under the protocol, we
set performance targets for each facility and annually
report on our performance against those targets.
Following the protocol helps advance three UN
Sustainable Development Goals – Goal 7 (Affordable
and Clean Energy), Goal 9 (Industry, Innovation and
Infrastructure) and Goal 13 (Climate Action) – by
reducing energy and GHG emissions and investing in
innovative processes and technologies and
incorporating them into our operations.
We also report our global GHG emissions data and
performance to the CDP (formerly the Carbon
Disclosure Project). Our responses to the CDP
questionnaire and disclosures in this report have been
mapped to the Task Force on Climate-related Financial
Disclosures recommendations.
Compared to the prior year, our direct energy
consumption decreased 16.2%, and our indirect
energy consumption decreased 3.1%. Our total
GHG emissions decreased 9.3%, and GHG intensity
increased 8.7%, largely due to the mandatory
shutdown in Peru, which led to lower production.
Air
Hudbay’s operations do not generate any major point
source air emissions (i.e., stack emissions or releases
through a confined air stream). Our primary air
emissions are forms of particulate matter (such as
dust and fuel emissions), primarily produced through
blasting activities, ore excavation and vehicles
travelling on unpaved roads. To ensure the air quality
on and near our sites is safe for people and the
environment, we implement controls such as dust
suppression systems, conduct monitoring, and report
our air emissions in full compliance with laws and
regulations in the countries where we operate.
Our total particulate emissions decreased 33%
compared to 2019, largely due to the increased
rainfall and snow cover in Manitoba in 2020.
Water
Water is vital for healthy communities and
ecosystems, and it is also essential to our operations.
Our water management approach aims to run our
operations without conflict with other water users
and minimize our impact on water resources.
Each site develops a water management plan that
addresses its unique water needs and challenges and
assesses water quality, quantity, availability and the
needs of local communities and other water users.
These plans are developed during the feasibility stage
as part of the site’s environmental impact studies and
are regularly reviewed and updated. None of our current
operations are located in any water-stressed areas, so
the sites’ current focus is on water discharge quality.
In 2018, MAC added a Water Stewardship Protocol
that requires water-related plans and management
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systems to include a water balance, a water monitoring
program, and response and contingency plans for
water-related risks and incidents. Sites must engage with
other water users and communities of interest in the
watershed and participate in watershed-scale planning.
To achieve level A for one of the new indicators, the site
must have a water-related objective or target to measure
performance. As a member of MAC, we implemented the
updated protocol in 2020 and will publicly report against
the protocol beginning in 2021.
Adhering to the TSM Water Stewardship Protocol helps
advance two UN Sustainable Development Goals – Goal 6
(Clean Water and Sanitation) and Goal 12 (Responsible
Consumption and Production) – by improving water
quality, addressing water scarcity and partnering with local
communities to support local water-related programs.
Since 2010, we have disclosed our water management
performance in CDP’s annual Global Water Report.
In 2020, the total amount of water withdrawn increased
9.89% and water discharged increased 13.5% compared
to 2019. The amount of water our operations discharge
can be impacted by precipitation. Total water recycled or
reused was approximately 251.8% of our total water use.
About This Report
Waste and Tailings
Mining and ore processing activities produce waste
byproducts, including waste rock (overburden that has
no economic value) and tailings (the material that
remains after the minerals have been extracted from
the crushed ore).
All Hudbay operations have plans in place to reduce,
reuse, recycle and responsibly dispose of hazardous and
non-hazardous waste. Because tailings, and their
associated storage facilities, present higher risks to our
business, we have additional processes and resources to
ensure we manage these risks effectively. A detailed
discussion on our approach to safely and responsibly
managing tailings is included in the Tailings
Stewardship section of this report.
Sites must manage waste rock in accordance with
environmental regulations and industry standards and in
a manner that minimizes the potential for acid rock
drainage, which is caused by a chemical reaction when
certain minerals in the rock are exposed to air and water.
Waste rock and tailings may be classified as potentially
acid generating (PAG) or non-acid generating (NAG). To
minimize and mitigate the potential impact of PAG-
classified material, we reuse, where possible, or dispose
of PAG material in contained areas that are engineered to
prevent acidic runoff.
During the year, we generated approximately 75% less
overburden waste, 35% less waste rock and 15% less
tailings compared to the previous year. The amount of
waste produced varies depending on the stage of the mine
lifecycle (i.e., more overburden when developing mines).
Closure and Reclamation
Successful mine closure begins during the design phase
of a project’s development and continues throughout
the mine’s lifecycle.
Our closure plans ensure compliance with all legal
frameworks and regulations within the jurisdictions
where we operate. They also align with TSM’s Mine
Closure Framework, which goes beyond jurisdictional
legal and regulatory closure plan requirements to
address commitments related to working with
stakeholders – in particular, the communities closest to
our mines – to develop mine closure plans that mitigate
the socio-economic impact of closure.
These plans include identifying opportunities to conduct
progressive rehabilitation once the areas are no longer
needed for mining. Closed mine sites are rehabilitated
to an agreed-upon beneficial post-mining use that is
as close as is practical to its pre-use condition. Post-
closure activities include maintenance and monitoring
to ensure closure objectives are progressing successfully
and as intended.
Hudbay Collaborating
on Next-Generation
Biological Wastewater
Treatment Solution
Hudbay and two other mining companies are
participating in a first-of-its-kind research
project, led by the University of Toronto and
University of California Berkeley, to study the
use of genomics in treating mine wastewater.
Genomics focuses on the structure,
function, evolution, mapping and editing
of genomes – an organism’s total genetic
material. The project is applying genomics
to better understand thiosalt (a sulfuroxyion
compound that can cause acidification in
wastewater), and develop innovative and
flexible management and treatment options
that reduce the sulphur compounds in the
wastewater. The desired outcome is a solution
in which the thiosalts support the wastewater
treatment efforts instead of being a challenge
to overcome.
Hudbay’s support of the project includes
collecting and providing project leaders water
samples, contributing in-kind support and
serving on the project’s advisory committee.
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Manitoba
The Manitoba Business Unit’s total water consumption
decreased by 3.6% compared to 2019, and water
consumption intensity increased by 1.0%.
The electricity used to run our processing plants is
renewable hydroelectricity sourced from Manitoba
Hydro, which keeps our GHG emissions and intensity
relatively low. We use propane for some infrastructure
for heating and diesel to run the mobile equipment
that extracts and transports ore. Reaching the end of
the mine life at the 777 operation impacts our energy
consumption due to the need to mine deeper, haul
material farther, and mill more material.
Our overall energy usage and energy intensity increased
by 1.1% and 5.4%, respectively, compared to 2019.
One example of the business unit’s eco-efficiency
efforts was at Lalor, where they installed equipment
that allows the team to adjust fresh water flow rates.
This program is discussed in more detail in the
Reducing Fresh Water Use and Lowering Energy
Costs in Manitoba case study.
Safely Managing Waste
In 2020, the business unit conducted a significant
amount of work on stabilizing the Flin Flon Tailings
Impoundment System (FFTIS). We discuss this work in
detail in the Strengthening Tailings Facilities in
Manitoba case study.
Much of the material used for constructing the
control berms and conducting the dam stabilization
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work at the FFTIS was waste rock from the closed
Trout mine located around 11 kilometres from Flin
Flon. Instead of leaving the waste rock in place and
contouring it at the Trout mine, we are hauling the
waste rock to Flin Flon and repurposing it for the
construction of the dams. We also used a significant
amount of tailings sand to construct the control
berms that will divert flows away from the town of
Creighton in the unlikely event of a dam breach.
At the 777 mine, we synchronized the milling activities
with the mine’s pasting requirements. This strategy
maximizes the amount of tailings to be sent
underground and decreases the volume of material
being sent to the Flin Flon tailings facility.
Managing Cyanide Risks
In 2020, we progressed the refurbishment of the
New Britannia mill near Snow Lake and completed
construction on a 6.8-kilometre-long pipeline corridor
linking the New Britannia mill with the Anderson
Tailings Impoundment Area (TIA) via the Stall mill.
The corridor includes three surface pipelines. One
will send reclaimed water from Anderson to New
Britannia and another will pump copper concentrate
produced at Stall to New Britannia. The third pipeline
will carry tailings generated at New Britannia to the
Stall concentrator for deposition in Anderson or to
Lalor’s paste backfill plant, which transforms tailings
into a paste that is pumped underground to backfill
and stabilize voids.
Prior to pumping tailings from New Britannia to the
Anderson TIA, we must destroy any cyanide used for
gold processing. Although cyanide-free gold
processing methods are being tested, cyanidation (in
which a sodium cyanide solution separates gold from
ore) is currently the safest and most effective and
economical method for recovering gold.
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Because cyanide in any form can be hazardous to
human health and the environment, we designed the
mill to follow the responsible management practices
detailed in the International Cyanide Management
Code (ICMC or the Cyanide Code). The Cyanide Code –
a voluntary industry program that promotes best
practices to safeguard workers, communities and the
environment – includes a requirement for gold
processing facilities that use cyanide to have a cyanide
management plan. In 2020, we completed a design
audit on the mill and conducted cyanide safety
training with suppliers who handle cyanide and/or
work with or near areas where the cyanide is
transported and stored.
Managing Biodiversity Impacts
and Preparing for Closure
One matter that we must continually manage at the
FFTIS are dust events, which can occur when
temperatures drop, the tailings dry out and the winds
pick up. These events typically happen in the spring,
because the tailings ponds tend to thaw earlier than
other water sources. However, in mid-October the Flin
Flon area experienced early winter conditions as
temperatures dropped and wind speeds increased.
Because there was very little snow cover, this created
a dust event that we addressed by placing straw on
top of the tailings.
Another ongoing challenge at FFTIS is deterring
migratory birds from landing in the facility’s areas that
are low in pH (i.e., acidic) and harmful to the birds.
Among the positive outcomes of the dam stabilization
work was that it eliminated standing water in one of
the low-pH areas, simplifying our goal of reducing the
risk to wildlife.
Closure and reclamation work during the year
included ongoing environmental monitoring at Reed,
which ceased operations in 2018, and continuing to
plan for the closure at the 777 mine. For safety
reasons, we demolished two structures in the smelter
complex that are no longer in use. One was a
100-year-old water tank – known as the Mandy tank –
and the other was a large coal silo.
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Peru
Meeting Environmental
Performance Objectives
The Peru Business Unit establishes annual key
performance indicators (KPI) across three areas –
environmental management, environmental quality
and sustainability. In 2020, the business unit achieved
its overall target but missed two sub-indicator targets
related to per capita water and energy consumption
at Constancia’s accommodation camp. The missed
target was due to the temporary shutdown of
operations related to the COVID-19 pandemic. With
fewer people using the facilities during March, April
and May (when operations were shut down), per
capita consumption increased. The impact on per
capita energy consumption at the camp also resulted
in a B level score under the TSM Energy and GHG
Emissions Management Protocol’s targets indicator.
(The business unit received an AA and AAA level score
for the systems and reporting indicators, respectively.)
Our overall energy usage in Peru increased by 29.1%,
and our energy intensity increased by 54.2%
compared to the previous year.
Efforts to improve eco-efficiencies across four areas –
energy use and GHG emissions, water, mineral waste
and land disturbed – included use of mineral waste
for construction of the tailings dam and exploring
opportunities to further reduce the amount of water
used in processing so that there is less contact water
to treat.
use. In early 2020 when an algae recording exceeded
limits, we reinforced efforts to maintain and clean the
accommodation camp’s water supply systems.
Total fresh water consumption decreased by 13.2%,
and fresh water consumption intensity increased by
25.6% compared to the prior year. The operation’s
surface and groundwater consumption were 35% and
79%, respectively, of the total maximum volume
authorized by the licences that govern the site’s water
Although there were no high-level environmental
incidents at Constancia, there was one medium-level
incident in August when 50 litres of bleach leaked
from a vehicle cleaning area into the Chilloroya River
and killed trout. This incident had no residual effects
and was cleaned up within hours.
There were no exceedances of air quality parameters
related to the site’s activities. As part of the site’s dust
control plan, irrigation systems were used to apply
water to haul truck roads as well as auxiliary and
national roads.
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Managing and Reducing Waste
Constancia continued to identify opportunities to
reduce, reuse and recycle the waste produced at the
mine site. Among the key activities in 2020:
• Recycled haul truck tires: We engaged two
companies to recycle used haul truck tires into
pellets that could be used for synthetic sports
fields and other purposes. During the year, 185 tires
were recycled.
• Increased solid waste recycling: Around 54% of all
solid waste was recycled in 2020, a 7% increase
from 2019.
• Installed compactor and conveyor belt: A new
compactor (400-kilogram capacity) reduced the
volume of waste required to be transported and
disposed of, and a conveyor belt was installed to
improve the waste segregation process in the
warehouse. These projects allowed staff to focus on
higher-priority activities, such as cleaning and
disinfecting areas to maintain a COVID-free site.
• Tested organic waste composting: During the year,
we used 3,668 kilograms of organic waste to test
anaerobic composting processes.
Testing Alternative Environmental
Technologies and Methods
One of Hudbay’s public targets for 2020 was to pilot
water treatment technologies and progress detailed
engineering for Constancia’s tailings water treatment
facility, which will allow us to safely discharge tailings
water in line with a water balance regulatory
requirement. During the year, we completed the first
phase of the pilot and initiated a second phase to
assess alternative technologies, such as evaporation
systems, that can complement other water treatment
solutions. The pilot is expected to be completed in
2021, with the final technologies selected soon after.
Another project during the year was to test the use of
potentially acid-generating waste rock on the
downstream side of the tailings dam. The test is
evaluating ways to safely encapsulate the waste rock
so that its use in the tailings dam construction does
not impact groundwater or surface water. This
multi-year study is being conducted under the
guidance of our engineer of record and members of
the Independent Peer Review Board (IPRB) to
determine if it is a safe and viable method.
To drive efficiencies and improve our reporting on
closure and reclamation activities, we began
implementing a software solution that provides an
integrated database and real-time reports on actions
such as soil management, reclamation of natural
areas, closure plans and biodiversity efforts. The
system is expected to be fully implemented in 2021.
Conserving and Protecting Biodiversity
Constancia’s annual biodiversity action plan (BAP)
includes objectives for actively managing biodiversity
impacts and ecosystem services.
A key element of the plan is engaging with
stakeholders to identify biodiversity conservation and
ecosystem services opportunities and evaluate
Hudbay’s management programs and performance.
The overall aim of the plan is to achieve no net
loss of biodiversity as a result of mining activities.
These objectives integrate IFC Performance
Standards, the TSM protocols and our environmental
management standards.
For the third year in a row, the Peru Business Unit
received an AAA level rating on all indicators under
the TSM Biodiversity Conservation Management
Protocol. Despite disruptions due to the COVID-19
pandemic, we achieved all primary BAP objectives for
2020, the most notable being:
• Delivering on the Cochapampa Bog Sustainable Use
and Management program by:
• Holding a variety of training workshops on
topics such as land use and crop rotation
systems, organic fertilizer, animal husbandry
and landscaping equipment
• Constructing ponds for fish and cattle feed
production
• Planting 5,000 native plants
• Strengthening water management systems and
capacity in Chilloroya (see the Water
Harvesting Projects Aim to Provide
Community with Sustainable Water Source
case study)
• Conducting progressive reclamation and ecological
restoration work. More than 26,000 native tree
seeds from our nursery have been planted and are
now seedlings.
• Participating in four meetings with the Regional
Government of Cusco through our participation in
the Water Council of the Apurimac River Basin. The
Council serves as a network for protecting and
enhancing the resources in the basin that supplies
water to both the Cusco and Arequipa regions.
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Arizona and Nevada
Pursuing a Path to Permit
a Responsible Mine
Hudbay’s Rosemont project in Arizona incorporates
responsible environmental management practices and
advanced mining techniques into its 4,000-plus-page
Mine Plan of Operations. These include replacing
105% of the water used, using dry stack tailings
instead of a conventional tailings impoundment to
reduce water consumption and risk, and a robust
mitigation and conservation plan to preserve and
protect local plant and animal species.
Following a US District Court ruling in 2019 that
overturned the US Forest Service’s approval of the
Rosemont project and resulted in the suspension of
project development activities, Hudbay appealed the
decision to the US Ninth Circuit Court of Appeals. A
significant amount of work in 2020 was focused on
developing the briefs for this case and preparing for
the oral arguments that took place in early 2021.
In another legal matter, in February 2020 the US
District Court remanded (i.e., sent back to the
regulatory agency for additional review) portions of
Rosemont’s biological opinion – the analysis from the
US Fish and Wildlife Service (FWS) concluding that the
project complies with the laws that protect
endangered species. Hudbay is working with the US
Forest Service to address the matters of concern
listed in the ruling, except for one related to jaguar
critical habitat. We appealed that matter to the US
Ninth Circuit Court of Appeals but agreed to
temporarily suspend our pursuit of the appeal
because we submitted a petition to the FWS to
reconsider the jaguar critical habitat designation (see
sidebar story for more information on this petition).
Throughout the appeals process, we have continued
to explore refinements to the project, and we are also
evaluating alternative options to allow us to
responsibly develop this world-class deposit.
Understanding Stakeholder Interests
at the Mason Project
Hudbay’s Mason project in Nevada’s Yerington Copper
District is still years away from development, but it has
significant potential. Ensuring that the project is viable
and can be successful requires a full understanding of
the risks and opportunities. In 2020, we conducted
significant outreach to local and government
stakeholders to understand their concerns with the
project. Understandably, much of that discussion was
around water. The feedback and insights from
stakeholders are being reviewed and incorporated
into project plans to ensure all concerns are identified
and actions are put in place to mitigate impacts.
As evidence of Hudbay’s commitment to applying
responsible, best-in-class environmental management
practices at Mason, in September Hudbay received the
Nevada Excellence in Mine Reclamation Award from
the State of Nevada Division of Minerals. The award
commended Hudbay for its concurrent reclamation
work at Mason, noting that exploration roads and drill
pad sites were successfully revegetated and reclaimed
to their pre-disturbed state.
Overview of Hudbay’s
Jaguar Critical
Habitat Petition
In November 2020, Hudbay filed a petition
with US Fish and Wildlife Service to revise
the jaguar critical habitat designation on
land that includes the Rosemont project. The
basis of the filing is that the revision will have
no discernible impact on the jaguar species’
survival and recovery.
As the petition details, the current range of
the jaguar – which the IUCN does not consider
to be threatened or endangered when
considering the species as a whole – extends
from Mexico through Central America and into
South America. They are rarely detected in the
southwestern United States, which is on the
extreme northern edge of the species’ range,
and no resident population of jaguars exists
in the US.
When the FWS designated 764,000 acres in
southern Arizona as jaguar critical habitat
in 2014, only six jaguars, all male, had been
reliably sighted in Arizona over a 50-plus-year
period, and only one jaguar has ever been
detected in the Santa Rita Mountains (the last
being in 2015).
Hudbay’s petition to remove 50,000 acres in the
northern Santa Rita Mountains (including the
land that contains the Rosemont project) from
the critical habitat designation is supported
by recent court rulings, regulatory changes,
and several studies that show the geographic
area currently occupied by the jaguar does not
extend into the Santa Rita Mountains.
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SUSTAINABILITY
PERFORMANCE
About This Report
Basis of Reporting
Data Measurement Techniques
All financial information is presented in
US dollars except where otherwise indicated.
All operating data is reported using the metric
system. Some metrics are reported on both
an absolute basis and an intensity basis against
kilotonnes of production (metal or metal
in concentrate). Safety data frequency rates
are measured per 200,000 hours worked.
Data is measured or estimated, and operations are asked to explain significant deviations in
year-over-year trends. The performance data is reported at a mix of operational and corporate
levels. Data is checked and approved at the site level and reviewed for consistency by the
corporate data collection team.
We provide safety and environmental incident definitions so that all operations report incidents
consistently. We calculate greenhouse gas (GHG) emissions using published factors for emissions.
Most of the performance data for water and energy is metred. We purchase all of our
electricity from local grids. Utility grid statistics are therefore used to compile GHG numbers
related to purchased electricity.
Data for the indicators is collected and compiled using the information submitted on a
standard template by each site. We provide instruction and criteria for indicators based on GRI
Standards, SASB, CDP questionnaires and Towards Sustainable Mining (TSM), and we supply a
GHG emissions worksheet developed by the Mining Association of Canada (MAC).
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Key Performance Data
Economic
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(in $ millions, unless otherwise stated)
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Direct economic value generated and distributed
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Profit (loss) before tax
Revenues
Operating costs
Canada
US
Peru
Chile
Total
Employee wages and benefits
Canada
US
Peru
Chile
Total
Payments to government
Taxes paid
Canada
US
Peru
Chile
Total
2020
2019
2018
2017
$
(144.6)
$
(452.8)
$
170.8
$
198.7
$ 1,088.7
$ 1,237.4
$ 1,472.3
$ 1,362.6
450.0
6.1
311.3
0.3
448.3
29.7
375.9
5.5
458.5
1.8
374.7
5.8
439.0
0.5
297.7
3.9
$
767.7
$
859.4
$
840.8
$
741.1
168.2
4.0
50.6
0.0
150.8
5.9
45.4
0.0
161.3
6.2
47.3
0.0
174.0
5.7
41.8
0.0
$
222.8
$
202.1
$
214.8
$
221.5
2.2
0.0
24.1
0.0
5.8
0.0
32.9
0.0
9.6
0.2
47.6
0.0
9.1
0.2
23.5
0.0
$
26.3
$
38.7
$
57.4
$
32.8
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Municipal taxes and grants
Canada
US
Peru
Chile
Total
Penalties and interest paid
Canada
US
Peru
Chile
Total
Payments to providers of capital
Dividends paid
Interest payments made to providers of loans
Financing fees paid
Canada
Peru
Total
Capital expenditures – cash flow basis
Payments – local communities for land use (in $000s)
Canada
US
Peru
Total land use payments
2020
2019
2018
2017
10.9
0.2
10.5
0.0
6.6
0.0
9.7
0.0
5.7
0.0
2.9
0.0
6.9
0.1
3.5
0.0
$
21.6
$
16.3
$
8.6
$
10.5
0.0
0.0
0.1
0.0
0.1
3.8
81.5
4.7
11.5
$
$
$
$
16.2
$ 361.20
0.0
0.0
0.0
0.0
2.1
0.0
2.1
3.9
74.8
1.7
24.4
26.1
259.2
0.0
0.0
$
$
$
$
$
0.0
0.0
0.0
0.0
$
0.0
$
$
4.0
74.8
3.6
17.0
$
$
20.6
190.9
0.0
0.0
0.0
0.0
0.4
0.0
0.4
3.7
52.7
6.6
20.0
26.6
249.8
0.0
0.0
$
$
$
$
$
98,322.0
3,355.0
1,062.0
2,149.0
$ 98,322.01
$ 3,355.0
$ 1,062.0
$ 2,149.0
1 Social Impact > Peru > Working with Communities on Growth Opportunities (page 66) in the report further discusses the land agreements negotiated with landowners in Peru.
Hudbay 2020 Annual Sustainability Report
| Sustainability Performance
83
Public benefit
Community investment and charitable donations (in $000s)
Canada
US
Peru
Chile
Total community investments and donations1
Resettlement investment (Peru) (in $000s)
Production (contained metal in concentrate)
Copper (000 tonnes)
Zinc (000 tonnes)
Gold (000 ounces)
Silver (000 ounces)
Molybdenum (000 ounces)
Metal production
Zinc (000 tonnes)
1 Political donations are included in this total; however, in accordance with Hudbay policy, political donations were $0.
2 Zinc metal production is the final product made from the zinc metal in concentrate. We neither sold nor bought zinc concentrate in the reporting year.
2020
2019
2018
2017
552.3
93.0
4,633.0
0.0
373.8
162.0
7,572.0
0.0
395.6
204.5
4,499.7
0.0
287.5
178.7
5,941.2
0.0
$ 5,278.4
$ 8,107.8
$ 5,099.8
$ 6,407.4
$
0.0
$
0.0
$
130.0
$
98.0
95.3
118.1
124.6
2,750.9
1.2
137.2
119.1
114.7
3,585.3
1.3
154.6
115.6
119.9
3,954.5
0.9
159.2
135.2
108.6
3,487.3
0.5
111.62
103.3
102.1
107.9
CEO Message
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| Sustainability Performance
84
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
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Employees
Total workforce
Full-time employees
Manitoba
Corporate
Arizona
Peru
Total full-time employees
Employment
Part-time employees
Manitoba
Corporate
Arizona
Peru
Total part-time employees
Contract (term) employees
Manitoba
Corporate
Arizona
Peru
Total contract employees
Co-op and summer students hired
Manitoba
Corporate
Arizona
Peru
Total co-op/summer students
2020
2019
2018
2017
1,392
76
28
739
2,235
31
0
4
0
35
51
1
1
165
218
20
4
0
30
54
1,411
69
25
728
2,233
14
1
2
0
17
64
2
1
130
197
13
5
0
23
41
1,382
74
33
690
2,179
13
0
2
0
15
34
4
1
165
211
27
3
3
12
45
1,332
70
35
304
1,741
20
0
4
0
24
19
2
1
444
516
26
3
1
12
42
Hudbay 2020 Annual Sustainability Report
| Sustainability Performance
85
CEO Message
Operational changes
Employees represented by collective bargaining agreements
Percentage of employees represented by trade unions (includes all full-time and part-time employees)
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
Minimum number of weeks provided before operational changes (MBU only)
Negotiated into collective agreements (MBU only)
Number of strikes or lockouts exceeding one week
Manitoba
Corporate
Arizona
Peru
Total
Employee turnover (includes all full-time employees)
Manitoba
Corporate
Arizona
Peru
Total
Employee turnover – age distribution
<30
30–50
>50
Employee turnover – gender
Male
Female
Voluntary turnover rate (Hudbay total)
Involuntary turnover rate (Hudbay total)
2020
1,389
61.2%
2
Yes
0
N/ap
N/ap
0
0
179
10
10
104
303
21%
42%
37%
82%
18%
9%
5%
2019
1,238
55.0%
2
Yes
0
N/ap
N/ap
0
0
168
18
18
84
288
18%
47%
35%
79%
21%
9%
4%
2018
1,370
58.1%
2
Yes
0
N/ap
N/ap
0
0
189
7
10
108
314
25%
44%
31%
76%
24%
10%
4%
2017
1,313
59.4%
2
Yes
0
N/ap
N/ap
0
0
192
8
8
128
336
20%
45%
35%
79%
21%
13%
6%
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| Sustainability Performance
86
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
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Sustainability Performance
About This Report
New employee hires
Manitoba
Corporate
Arizona
Peru
Total
New hires – age distribution
<30
30–50
>50
New hires – gender
Male
Female
Net number of full-time employees added (decreased)
Canada
US
Peru
Total
Senior management from local community
Number of contractor full-time equivalent staff
Manitoba
Peru
Arizona
Person-hours of work (including contractors)
North America
South America
Total person-hours
2020
2019
2018
2017
172
8
16
146
342
36%
54%
11%
80%
20%
(12)
3
11
2
5
456
1,774
14
233
13
8
98
352
39%
45%
16%
78%
22%
24
(8)
38
54
4
407
2,283
15
3,902,648
6,257,428
3,750,575
7,146,600
10,160,076
10,897,175
222
15
3
227
467
35%
59%
12%
81%
19%
54
(2)
386
438
6
220
13
6
238
477
39%
52%
9%
81%
19%
16
(5)
74
85
5
429
1,737
13
3,701,855
5,992,125
9,693,980
284
2,780
9
3,232,379
7,867,939
11,100,318
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87
CEO Message
Our Feature Case Studies
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Environment
Employees receiving regular performance and career development reviews
(includes all full-time employees)
Percentage reviewed
Hudbay total workforce age distribution (includes all full-time employees)
<30
30–50
>50
Composition of employees
Workforce diversity (includes all full-time employees)
Female
Manitoba
Corporate
Arizona
Peru
Total
Percentage of workforce that are female
Percentage of workforce that are Indigenous (MBU only)
Sustainability Performance
Percentage of workforce that are disabled (MBU only)
About This Report
Percentage of workforce that are visible minorities (MBU only)
Composition of executive management and corporate governance bodies
2020
2019
2018
2017
59%
16%
66%
26%
18%
41%
32%
12%
17%
16%
15%
2%
5%
53%
17%
64%
27%
16%
48%
28%
12%
16%
16%
15%
4%
6%
46%
17%
62%
31%
15%
43%
45%
12%
16%
16%
15%
4%
6%
40%
15%
53%
33%
15%
47%
49%
25%
18%
18%
14%
5%
6%
Board of Directors (ratio male to female)
2.3:1
2.7:1
2.5:1
2.3:1
Age distribution
<30
30–50
>50
Executive management (ratio male to female)
Age distribution
<30
30–50
>50
Hudbay 2020 Annual Sustainability Report
| Sustainability Performance
0%
10%
90%
13.0:1
0%
43%
57%
0%
9%
91%
13.0:1
0%
43%
57%
0%
0%
100%
7:1
0%
30%
70%
0%
0%
100%
5:1
0%
29%
71%
88
Ratio of annual compensation of highest paid individual to mean total compensation
(includes all full-time employees, and Peru contract employees)
Canada (MBU, excluding Corporate office)
Canada (including Corporate office)
Peru
US (ABU)
2020
2019
2018
2017
7.1:1
23.0:1
14.5:1
8.8:1
4.1:1
26.4:1
17.8:1
4.4:1
5.8:1
28.3:1
19.1:1
5.5:1
6.8:1
23.4:1
19.5:1
4.8:1
Workforce represented in formal joint management–worker Health and Safety Committees
Percentage represented
99%1
99%
100%
100%
Health and safety performance (per 200,000 hours worked, except where noted)
Lost time injury frequency (LTA)
CEO Message
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Business and
Financial Review
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Environment
Sustainability Performance
Manitoba
Manitoba contractors
Peru
Peru contractors
Arizona
Arizona contractors
Chile
Chile contractors
About This Report
Other North America (not including MBU and ABU)
Other North America contractors (not including MBU and ABU)
Other South America (not including Peru and Chile)
Other South America contractors (not including Peru and Chile)
Total
1 Hudbay’s Arizona employees are currently not covered because the size of their office does not require it.
0.6
0.2
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.7
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.9
0.0
0.1
0.1
0.0
0.0
0.0
2.6
0.0
0.0
0.0
0.0
0.3
1.0
0.7
0.1
0.0
0.0
0.0
N/av
N/av
0.0
0.0
0.0
0.0
0.3
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| Sustainability Performance
89
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Lost time injury severity (SEV)
Manitoba
Manitoba contractors
Peru
Peru contractors
Arizona
Arizona contractors
Chile
Chile contractors
Sustainability Approach
North America (not including MBU and ABU)
Our People
Social Impact
Environment
Sustainability Performance
About This Report
North America contractors (not including MBU and ABU)
South America (not including Peru)
South America contractors (not including Peru)
Total
Total recordable injury frequency
Manitoba
Manitoba contractors
Peru
Peru contractors
Arizona
Arizona contractors
Chile
Chile contractors
North America (not including MBU and ABU)
North America contractors (not including MBU and ABU)
South America (not including Peru)
South America contractors (not including Peru)
Total
2020
10.5
6.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
3.4
2.7
3.4
0.2
0.4
4.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.3
2019
5.5
0.0
9.4
1.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.1
3.1
4.3
0.3
0.3
0.0
0.0
0.0
4.4
1.3
0.0
0.0
0.0
1.3
2018
41.3
0.0
2.5
3.3
0.0
0.0
0.0
178.7
0.0
0.0
0.0
0.0
13.1
3.7
2.3
0.2
0.3
0.0
0.0
0.0
2.6
0.0
0.0
0.0
0.0
1.3
2017
34.4
13.9
0.5
0.0
0.0
0.0
N/av
N/av
0.0
0.0
0.0
0.0
8.4
N/av
N/av
N/av
N/av
N/av
N/av
N/av
N/av
N/av
N/av
N/av
N/av
N/av
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90
CEO Message
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First aid (FA) frequency
Manitoba
Manitoba contractors
Peru
Peru contractors
Arizona
Arizona contractors
Chile
Chile contractors
North America (not including MBU and ABU)
North America contractors (not including MBU and ABU)
South America (not including Peru)
South America contractors (not including Peru)
Total
Fatality (number)
Absentee rate (as a percentage of hours scheduled to be worked)
Reportable occurrences (defined as EHS incidents required by Hudbay policy to be reported to our
Board of Directors)
2020
18.1
12.6
0.2
0.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
6.4
01
N/av
57
2019
20.8
16.6
0.4
0.9
3.4
12.5
0.0
0.0
0.0
0.0
0.0
0.0
6.9
0
N/av
81
2018
28.9
8.7
1.0
1.3
0.0
0.0
0.0
0.0
1.4
0.0
0.0
0.0
8.6
0
N/av
79
2017
16.8
2.4
0.9
0.7
0.0
10.5
N/av
N/av
0.0
0.0
0.0
0.0
4.3
0
N/av
56
1 We are saddened to report that a passenger in a company vehicle driven by one of our employees was killed in a highway accident. While we took this with great seriousness, and are investigating taking preventive actions for the future, we understand that it does not fit the
industry criteria for statistical reporting.
Benefits 2020
Life insurance
Health care
Disability and invalidity coverage
Parental leave
Retirement provision
Stock ownership
Other – critical illness insurance
Other – accidental death and
dismemberment insurance
Corporate
Full time
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Hudbay 2020 Annual Sustainability Report
| Sustainability Performance
MBU
Peru
ABU
Full time
Part time
Full time
Part time
Full time
Part time
Yes
Yes
Yes
Yes
Yes
Yes
Management only
Yes
Yes
Yes
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
N/ap
N/ap
N/ap
N/ap
N/ap
N/ap
N/ap
N/ap
Yes
Yes
Yes
Yes
Yes (401k)
Yes
No
Yes
No
No
No
No
No
No
No
No
91
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Society
Total number of incidents of discrimination (and actions taken)
Land use disputes
Resettlements
Number of households (Peru only)
Number of individuals (Peru only)
Employees trained in anti-corruption policies
Number – employees
Percentage of workforce
Sustainability Approach
Percentage of management given training
Employees that anti-corruption policies have been communicated to
Our People
Social Impact
Environment
Sustainability Performance
About This Report
Number – management
Percentage
Number – non-management
Percentage
Number and percentage of operations assessed for corruption risks
Number – operations
Percentage
Governance body members that anti-corruption policies have been communicated to
Number
Percentage
Governance body members that received training on anti-corruption
Number
Percentage
2020
2019
2018
2017
0
0
0
0
1,193
53%1
100%
546
90%
1,809
98%
4
100%
10
100%
102
100%
0
1
0
0
1,245
56%
100%
562
92%
1,810
99%
4
100%
9
100%
9
100%
1
1
0
0
1,064
49%
100%
564
100%
1,840
100%
4
100%
10
1
10
1
0
2
0
0
952
55%
100%
580
100%
1,649
100%
4
100%
10
1
10
1
1 Hudbay’s anti-corruption training varies from year to year. Each year, all employees with Hudbay email addresses, accounting for 53% of our workforce this year, are required to read and sign off on our compliance policies (including our Whistleblower Policy and our Code of
Business Conduct and Ethics). Additionally, we supplied an online training session that focused on diversity and inclusion. This training included a reference back to our Whistleblower Policy.
2 Board directors are required to complete the same annual certification process as our employees with respect to our key compliance policies. In addition, our directors are encouraged to attend third-party educational programs, particularly with the Institute of Corporate
Directors, where they have access to educational materials and are invited to training seminars throughout the year. For more information, see our Management Information Circular.
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| Sustainability Performance
92
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Average hours of training (Peru and Arizona business units only)
Males in management
Females in management
Males in non-management
Females in non-management
Average spend (DJSI)
Security practices (security personnel training)
Hudbay security personnel trained in human rights policies and procedures
Number
Percentage
Contractor security personnel trained in human rights policies and procedures
Number
Percentage
Value of fines or sanctions for non-compliance with laws and regulations
Grievances about impacts on society
Number filed through formal grievance mechanisms
Number addressed during reporting period
Number resolved during reporting period
Number filed prior to the reporting period that were resolved during the reporting period
Number of other concerns
Environment
Labour and commercial practices
Resettlement/livelihood
Human rights
Other
2020
26.97
1.37
52.37
48.53
$949
21
100%
125
100%
$0
64
64
53
0
7
151
9
1
26
2019
2018
2017
32.35
20.00
42.92
20.14
$466
16
100%
116
100%
$0
78
9
69
6
5
152
4
1
25
65.69
75.73
118.09
113.48
$208
15
100%
135
98%
$0
15
15
1
8
0
104
0
0
4
60.70
65.98
100.09
85.82
$362
15
100%
124
98%
$0
20
20
12
8
4
113
2
1
1
Hudbay 2020 Annual Sustainability Report
| Sustainability Performance
93
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Closure plans
Identify total number of operations
Number of company operations that have closure plans
Percentage of total operations with closure plans
Number of advanced exploration projects that have closure plans
Percentage of advanced exploration projects that have closure plans
Overall financial provision representing the present value of future cash flows relating
to estimated closure costs per Canadian Generally Accepted Accounting Principles (in $000s)
Operation has implemented local community engagement, impact assessments,
and development programs in line with the Stakeholder Engagement Standard
Manitoba
Arizona
Peru
Chile
Operation is taking place in or adjacent to Indigenous peoples’ territories
Manitoba
Arizona
Peru
Chile
Artisanal/small-scale and informal mining
Toronto
Manitoba
Arizona
Peru
Chile
1 Our only activities in Chile have been exploration, and we had no exploration activity in 2020.
2 Economic compensation has been negotiated with the informal miners who carry out mining activity within the area of the Pampacancha Pit.
3 Artisanal mining continues to be active adjacent to the Trilco camp.
2020
4
4
100%
2
100%
2019
2018
2017
4
4
100%
3
100%
4
4
1
2
1
5
5
1
1
1
$343,132
$302,116
$202,024
$200,000
Yes
Yes
Yes
Yes
Yes
Yes
Yes
N/ap1
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Partially
Yes
Yes
Yes
Yes
Yes
Yes
Yes
N/ap
N/ap
N/ap
N/ap
No artisanal/
small-scale or
informal mining
No artisanal/
small-scale or
informal mining
Yes2
Yes3
No artisanal/
small-scale or
informal mining
No artisanal/
small-scale or
informal mining
Yes
Yes
No artisanal/
small-scale or
informal mining
No artisanal/
small-scale or
informal mining
Yes
Yes
No artisanal/
small-scale or
informal mining
No artisanal/
small-scale or
informal mining
Yes
Yes
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| Sustainability Performance
94
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Environment
Direct energy consumption by primary energy source (terajoules)
Propane
Diesel
Gasoline
Other
Total
Indirect energy consumption by primary energy source (terajoules)
Total electricity consumed
Indirect energy sold/credits (terajoules)
Sustainability Approach
Electricity
Our People
Social Impact
Environment
Sustainability Performance
About This Report
Total indirect energy consumed by organization (terajoules)
Energy intensity (terajoules per kilotonne of metal in concentrate and cast zinc)
Total direct and indirect greenhouse gas emissions (kilotonnes of CO2-equivalent)
Direct CO2e emissions
Indirect CO2e emissions1
Total
GHG intensity (tonnes of GHG emissions per kilotonne of metal in concentrate and cast zinc)
NOX, SOX and other significant air emissions (in kilotonnes)
NOX, SOX
MBU
Peru
Arizona
Total
Particulate
MBU
Peru
Arizona
Total
2020
624
1,393
15
0
2,031
5,722
0.00
5,722
24
144
367
510
2.38
0.00
0.00
0.00
0.002
0.43
N/av
0.00
0.433
2019
615
1,794
15
0
2,424
5,905
0.84
5,904
23
161
402
563
2.19
0.00
0.00
0.00
0.00
0.65
N/av
0.00
0.65
2018
793
1,778
15
0
2,586
5,820
0.42
5,819
23
170
403
573
2.12
0.00
0.00
0.00
0.00
0.54
N/av
0.00
0.54
2017
629
2,019
16
0
2,664
5,652
0.47
5,652
21
177
363
541
1.84
0.00
0.00
0.00
0.00
0.62
N/av
0.00
0.62
1 Over 95% of our indirect emissions are related to electricity purchased from the grid in Peru. We have calculated this using an emissions factor provided by the Peruvian government that did not change between 2015 and 2019 despite a changing composition of generation. In 2020,
after publishing our 2019 report, a revised factor for 2019 was developed by the government that was approximately one-third of the previous factor, but it was not officially issued. The Peruvian government developed an updated factor for 2020 that is in the same range as the 2019
figure, but it was not officially published either. We have elected to continue to use the previous, higher factor while we wait for the newer factors to be made official and publicly accessible – once the new factors are declared official, we will publish an updated GHG analysis at this link.
2 We have had zero SOX emissions from stationary sources since we closed the smelter in Manitoba in 2010.
3 In Manitoba, we collect and report on fugitive dust. Collection and reporting at the same level of detail is not required in Peru. Ambient monitoring is conducted and confirmed to be in compliance with regulatory requirements, but total particulate release data is not collected.
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CEO Message
Total water withdrawal (000 cubic metres)
Surface water
Groundwater
Rainwater collected directly and stored by the organization
Our Feature Case Studies
Waste water from another organization
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
Municipal water supplies
Total water withdrawal
Percentage and total volume of water recycled and reused
Total volume (000 cubic metres)
Percentage
Total water discharged (000 cubic metres)
To Flin Flon Creek/Ross Lake/Schist Lake
To Anderson Creek/Wekusko Lake
To Woosey Creek/Morgan Lake
Namew Lake
Herblet Lake
To ground
To Chilloroya River (Peru)
Total water discharged
About This Report
Total number of significant spills3
Volume (liquid) (m3)
Volume (solid) (tonnes)
Hazardous waste disposed of at external facility (tonnes)
Total amounts of waste (tonnes)
Overburden
Waste rock
Tailings
2020
2019
2018
2017
12,093
4,540
7,705
0.00
0.08
24,338
61,283
252%
14,342
4,370
1,824
35
576
01
1,981
23,1282
14
50
0
468
12,693
4,144
5,093
0.00
0.14
21,930
75,088
342%
12,501
4,384
1,670
30
595
0
862
20,041
0
0
0
926
13,770
4,155
6,193
0.00
0.01
24,118
65,698
272%
15,897
4,384
1,670
30
5
181
1,358
23,526
0
0
0
1,166
11,058
2,747
10,242
0.00
0.00
24,047
53,474
222%
13,941
9,067
1,788
30
784
297
294
26,201
3
286
120
1,944
65,738
23,992,684
28,044,090
256,454
37,005,883
33,211,879
258,288
37,055,344
32,457,474
1,302,405
32,432,669
30,545,163
1 In previous years, water discharged to ground was from the Reed mine. With the closure, this dropped to zero.
2 All discharged water is treated according to regulatory water quality requirements prior to discharge.
3 We define a significant spill as anything that causes a moderate or higher impact on the physical or biological environment, which may include limited impairment of ecosystem function, impact to surface or groundwater or impact to drinking water supply.
4 Information on this spill is disclosed in Environment > Peru > Meeting Environmental Performance Objectives.
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CEO Message
Total amounts of waste recycled (tonnes)
Waste rock used as backfill
Waste rock used for tailings structures
Tailings used for backfill
Our Feature Case Studies
Total
2020
2019
2018
2017
2,770
9,385,125
688,613
19,530
157,622
90,900
10,508,423
13,098,446
12,750,897
738,743
564,212
467,098
10,076,508
11,266,696
13,820,280
13,308,895
Number of fines or sanctions for non-compliance with environmental laws and regulations
0
6
0
0
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Land use (hectares) – mineral tenure (sub-surface rights)
Manitoba and Saskatchewan
Yukon
Nunavut
Total Canada
Arizona
Nevada
New Mexico
Total USA
Chile
Peru
Sustainability Performance
Total South/Central America
Total
About This Report
Land use (hectares) – surface tenure (controlled land)
Manitoba and Saskatchewan
Yukon
Nunavut
Total Canada
Arizona
Nevada
New Mexico
Total USA
Chile
Peru
Total South/Central America
Total
Hudbay 2020 Annual Sustainability Report
| Sustainability Performance
603,506
518,030
241,810
121,241
0
21
0
21
0
21
583
21
603,527
518,051
241,831
121,846
11,532
14,394
1,917
16,311
1,531
160,754
162,285
782,123
7,718
0
0
7,718
3,249
86
0
3,335
0
1,620
1,620
9,338
7,284
N/av
N/av
7,284
1,531
139,496
141,027
659,078
7,284
N/av
N/av
7,284
263,900
99,736
363,636
612,751
7,711
7,647
0
0
7,711
N/av
N/av
N/av
N/av
0
1,591
1,591
9,302
0
0
7,647
N/av
N/av
N/av
N/av
0
1,524
1,524
9,172
7,284
N/av
N/av
7,284
263,900
99,736
363,636
492,765
7,314
120
0
7,434
N/av
N/av
N/av
N/av
0
1,518
1,518
8,952
97
CEO Message
Percentage of sites with legally required plans in place
Sites requiring biodiversity management plans
Number of sites legally requiring plans
Our Feature Case Studies
Our Company
Business and
Financial Review
Number of sites with voluntary plans in place
Habitats protected or restored (hectares)
Protected
Restored
Partnerships exist
2020
2019
2018
2017
2
100%
1
01
84
No2
2
100%
1
0
25
Yes
2
100%
1
0
1
2
100%
1
0
0
Yes
Yes
Status at close of reporting period
Monitoring
Monitoring
Monitoring
Monitoring
Sustainability Approach
IUCN Red List species and National Conservation List species
Our People
Social Impact
Environment
Sustainability Performance
About This Report
Critically endangered
Endangered
Vulnerable
Near threatened
Least concern
2
6
26
24
342
3
6
29
24
388
3
5
25
22
89
2
2
19
12
4
1 Forested areas and wetlands are located in Grass River and Clearwater Lake Provincial Parks in Manitoba, where we have mineral but no surface rights.
2 The previous years’ partnership was with the community of Chilloroya in Peru to plan restoration of a wetland as part of our land compensation commitment – this work has been completed, so the partnership is no longer active.
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CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
2020 Targets and Achievements
Target
Health and Safety
Achievement
Details
Match or improve on our current three-year average lost time injury severity of 7.0
Achieved
Our 2020 lost time injury severity average was 3.4 shifts lost per 200,000 hours worked.
Match or improve on our two-year total recordable injury frequency average
of 1.3 (based on ICMM classification criteria, which we started tracking in 2018
and therefore only have two years of data)
Community
Achieved
Our 2020 total recordable injury frequency average was 1.3 recordable injuries
per 200,000 hours worked.
Reach agreements with individual community members that currently use portions
of the acquired Pampacancha lands
Partially
achieved
Over the course of the year, we concluded the majority of the individual land
user agreements required to commence development.
Continue to provide local communities with planning information and support
for economic transition related to the closure of the 777 mine and metallurgical
complex in 2022
Environment
Achieved
More information under Preparing for Closure Impacts and Transition.
Complete the construction of the control berms and initiate phase II Flin Flon dam
legacy upgrades
Achieved
More information under Strengthening Tailings Facilities in Manitoba.
Initiate pilot plant testing for selection of best technology and progress detailed
engineering of the Constancia tailings water treatment facility
Achieved
More information under Testing Alternative Environmental Technologies
and Methods.
Governance
Sustainability Performance
Implement revised Long-Term Incentive Plan for executive and employee compensation Achieved
Our updated Long-Term Incentive Plan is explained in our
Management Information Circular.
About This Report
COVID-19: Effective implementation of corporate and business unit crisis response
plans to maintain safe operations and business continuity
Achieved
More information under Responding to COVID-19: Resilience in Action.
Financial Excellence/Growth
Subject to maintaining sufficient financial liquidity, and ability to safely carry out
exploration and project activities:
• Progress the refurbishment of the New Britannia mill and pre-development
of Lalor copper-gold zones, and drill Lalor gold to add to reserves and extend
mine life
• Continue evaluating Constancia regional exploration targets, and work to identify
and unlock future value
Achieved
More information under Snow Lake: Expansion to Gold and Constancia: Expanding
the Resource Base, Improving the Operation.
Advance preliminary economic studies at Mason
In conjunction with relevant US federal agencies, pursue appeal of Rosemont
decision through the US Ninth Circuit Court of Appeals
Achieved
Achieved
Consolidated land near Mason and advanced preliminary economic studies
The US government confirmed its participation in the appeal; briefs were completed
in 2020 and the decision is pending.
Renegotiate debt covenants under revolving credit facility
Achieved
Discussed in the Business Activities section of this report.
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2021 Targets
Health and Safety
• Match or improve on our current three-year average
Environment
• Hudbay operating locations achieve level “A” or
Governance
• Review and formally allocate strategic risk and
lost time injury severity of 6.7
• Match or improve on our three-year total
recordable injury frequency average of 1.3
(based on ICMM classification criteria)
Community
• Continue to provide local communities with planning
information and support for economic transition
related to the closure of the 777 mine and
metallurgical complex in Flin Flon, Manitoba, in 2022
higher for all indicators in the initial public reporting
of the TSM Water Stewardship Protocol
• Define a pathway (e.g., sources of emissions, nature
risk oversight to the appropriate Board committee,
including recognizing diversity and inclusion
in Board risk oversight
Financial Excellence/Growth
• Meet targets on first ore milled and completion
of copper flotation circuit at New Britannia mill
• Meet budgeted production for the year
of investment steps and key technology areas,
conceptual requirements for reductions to be
economically feasible) for each Hudbay operation to
achieve a 2030 Scope 1 and Scope 2 greenhouse gas
emissions (GHG) target that is consistent with a path
to achieving the global objective of limiting global
warming to well below 2°C (above pre-industrial
levels). The pathway will guide our investment
evaluations and inform our suppliers and partners
of our needs so that we contribute to necessary
reductions. As a producer of commodity materials,
we will focus on GHG intensity, as our contribution
is to provide required materials more efficiently.
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
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CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
GRI and SASB Content Index
GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
GRI 101: Foundation 2016
General Disclosures
Organizational Profile
102-1
102-2
102-3
102-4
102-5
102-6
102-7
102-8
102-9
102-10
102-11
102-12
Name of the organization
Our Company (see page 9)
Activities, brands, products and services
Our Company (see page 9)
Business and Financial Review (see page 20)
Location of headquarters
Website > About Us
Location of operations
Our Company (see page 9)
Ownership and legal form
Our Company (see page 9)
Markets served
Sustainability Approach > Responsible Supply Chain > Products (see page 45)
Scale of the organization
Business and Financial Review (see page 20)
Business and Financial Review > Business Activities (see page 25)
Information on employees
and other workers
Sustainability Approach > Responsible Supply Chain > Products (see page 45)
EM-MM-000.A
Sustainability Performance > Key Performance Data (see pages 84–85)
EM-MM-000.B
Production of (1) metal
ores and (2) finished
metal products
Total number
of employees,
percentage contractors
Supply chain
Sustainability Approach > Responsible Supply Chain > Supply Chain Performance
(see page 44)
Significant changes to the organization
and its supply chain
CEO Message (see page 3)
Business and Financial Review (see page 20)
Business and Financial Review > Business Activities (see page 25)
Precautionary principle or approach
Our Company > Risk Management > Precautionary Approach (see page 17)
External initiatives
Sustainability Approach > Sustainability Governance > International Systems
and Performance Standards (see page 31)
Sustainability Approach > Sustainability Governance > Industry Involvement (see page 32)
Sustainability Approach > Tailings Stewardship > Tailings Management Protocol (see page 35)
Sustainability Approach > UN Sustainable Development Goals (see page 46)
Our People > Our Approach > Diversity and Inclusion (see page 53)
Social Impact > Our Approach > Economic Contributions (see page 62)
Social Impact > Our Approach > Indigenous Engagement (see page 62)
Environment > Our Approach (see page 73)
102-13
Membership of associations
Sustainability Approach > Sustainability Governance > Industry Involvement (see page 32)
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GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
Strategy
102-14
102-15
Ethics and Integrity
102-16
Statement from senior decision-maker
CEO Message (see page 3)
Key impacts, risks and opportunities
CEO Message (see page 3)
Our Company > Business Conduct > Risks, Issues or Complaints (see page 15)
Our Company > Risk Management (see page 16)
Values, principles, standards, and norms
of behaviour
Our Company > Vision, Mission, Values (see page 11)
Our Company > Business Conduct (see page 14)
102-17
Mechanisms for advice and concerns
about ethics
Sustainability Approach > Sustainability Governance > Sustainability Management
Framework (see page 30)
Sustainability Approach > Human Rights and Security (see page 33)
Sustainability Approach > Responsible Supply Chain (see page 44)
Website > Disclosure Centre > Policies
Our Company > Business Conduct (see page 14)
Our Company > Business Conduct > Risks, Issues or Complaints (see page 15)
Sustainability Approach > Responsible Supply Chain (see page 44)
Governance
102-18
Governance structure
Our Company > Corporate Governance (see page 12)
Our Company > Board of Directors (see page 13)
Our Company > Management Team (see page 18)
Sustainability Approach > Sustainability Governance (see page 30)
Management Information Circular
Website > About Us > Board
Website > About Us > Management
102-19
Delegating authority
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Sustainability Governance > Sustainability Management
Framework (see page 30)
102-20
102-21
Executive-level responsibility
for economic, environmental
and social topics
Our Company > Corporate Governance (see page 12)
Our Company > Management Team (see page 18)
Sustainability Approach > Sustainability Governance (see page 30)
Consulting stakeholders on economic,
environmental and social topics
Our Company > Corporate Governance (see page 12)
Sustainability Approach > Stakeholder Engagement (see page 39)
Social Impact > Our Approach (see page 62)
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GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Governance (cont’d)
102-22
Composition of the highest governance
body and its committees
Our Company > Corporate Governance (see page 12)
Our Company > Board of Directors (see page 13)
Management Information Circular
Website > About Us > Governance
Website > Disclosure Centre > Committees
102-23
Chair of the highest governance body
Our Company > Corporate Governance (see page 12)
Our Company > Board of Directors (see page 13)
Management Information Circular
Website > About Us > Board
GRI 102: General Disclosures 2016
Sustainability Approach
102-24
Nominating and selecting the highest
governance body
Management Information Circular
Website > About Us > Governance
Our People
Social Impact
Environment
Sustainability Performance
About This Report
102-25
Conflicts of interest
Our Company > Business Conduct (see page 14)
Website > Disclosure Centre > Committees
102-26
102-27
102-28
102-29
102-30
102-31
102-32
Sustainability Approach > Sustainability Governance (see page 30)
Annual Information Form (see page 54)
Role of highest governance body in
setting purpose, values and strategy
Sustainability Approach > Sustainability Governance (see page 30)
Website > About Us > Governance > Corporate Guidelines and Board Charter
Collective knowledge of highest
governance body
Annual Information Form (see page 51)
Website > About Us > Board
Evaluating the highest governance
body’s performance
Identifying and managing economic,
environmental and social impacts
Effectiveness of risk
management processes
Review of economic, environmental
and social topics
Website > About Us > Governance > Corporate Guidelines and Board Charter
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Sustainability Governance > Sustainability Management
Framework (see page 30)
Our Company > Risk Management (see page 16)
Sustainability Approach > Sustainability Governance (see page 30)
Highest governance body’s role
in sustainability reporting
Website > Disclosure Centre > Committees > Environment, Health, Safety and
Sustainability Committee Charter
The EHSS Committee reviews and approves the content within the Annual
Sustainability Report.
102-33
Communicating critical concerns
Our Company > Business Conduct > Risks, Issues or Complaints (see page 15)
Our Company > Risk Management (see page 16)
Website > Disclosure Centre > Policies > Whistleblower Policy
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GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
GRI 102: General Disclosures 2016 (cont’d)
102-34
Nature and total number of critical
concerns
Our Company > Business Conduct > Risks, Issues or Complaints (see page 15)
Sustainability Approach > Human Rights and Security (see page 33)
Sustainability Approach > Stakeholder Engagement (see page 39)
Sustainability Performance > Key Performance Data (see page 93)
102-35
Remuneration policies
Management Information Circular
Website > Disclosure Centre > Policies > Compensation and Human Resources
Committee Charter
102-36
102-37
102-38
102-39
Process for determining remuneration
Management Information Circular
Stakeholders’ involvement in
remuneration
Management Information Circular
Annual total compensation ratio
Sustainability Performance > Key Performance Data (see page 89)
Percentage increase in annual total
compensation ratio
Management Information Circular
Stakeholder Engagement
102-40
102-41
102-42
102-43
102-44
List of stakeholder groups
Sustainability Approach > Stakeholder Engagement (see page 39)
Collective bargaining agreements
Sustainability Performance > Key Performance Data (see page 86)
Identifying and selecting stakeholders
Sustainability Approach > Stakeholder Engagement (see page 39)
Approach to stakeholder engagement
Sustainability Approach > Stakeholder Engagement (see page 39)
Key topics and concerns raised
Our Company > Business Conduct > Risks, Issues or Complaints (see page 15)
Sustainability Approach > Human Rights and Security (see page 33)
Sustainability Approach > Stakeholder Engagement (see page 39)
Social Impact > Manitoba (see page 64)
Social Impact > Peru (see page 66)
Social Impact > Arizona and Nevada (see page 68)
Reporting Practice
102-45
102-46
102-47
102-48
102-49
102-50
102-51
Entities included in the consolidated
financial statements
About This Report (see page 117)
Annual Information Form (see page 5)
Defining report content and topic
Boundaries
Sustainability Approach > Materiality (see page 41)
Sustainability Approach > Materiality > Boundaries (see page 43)
List of material topics
Sustainability Approach > Materiality (see page 41)
Restatements of information
There are no restatements of information from previous reports.
Changes in reporting
There are no significant changes from previous reporting in scope of priorities.
Reporting period
About This Report (see page 117)
Date of most recent report
About This Report (see page 117)
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GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Reporting Practice (cont’d)
102-52
102-53
102-54
102-55
102-56
Reporting cycle
About This Report (see page 117)
Contact point for questions regarding
the report
Claims of reporting in accordance with
the GRI Standards
About This Report (see page 117)
About This Report (see page 117)
GRI content index
External assurance
GRI Content Index (see page 101)
External assurance was conducted only for the financial data
in the 2020 Annual Sustainability Report.
Material Topics
GRI 200: Economic Standard Series
Sustainability Approach
Economic Performance
GRI 103: Management Approach 2016
Our People
Social Impact
Environment
Sustainability Performance
About This Report
103
Management approach
CEO Message (see page 3)
Our Company > Corporate Governance (see page 12)
Our Company > Risk Management (see page 16)
Business and Financial Review > Strategy (see page 23)
Sustainability Approach > Materiality (see page 41)
Social Impact > Our Approach (see page 62)
Social Impact > Our Approach > Economic Contributions (see page 62)
Sustainability Performance > 2020 Targets and Achievements (see page 99)
Sustainability Performance > 2021 Targets (see page 100)
Annual Information Form (see page 6)
GRI 201: Economic Performance 2016
201-1
201-2
201-3
Direct economic value generated and
distributed
Sustainability Performance > Key Performance Data (see page 82)
Financial implications and other risks and
opportunities due to climate change
CDP Website
Defined benefit plan obligations and
other retirement plans
Management’s Discussion and Analysis
Hudbay 2020 Annual Sustainability Report
| Sustainability Performance
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CEO Message
103
Management approach
Sustainability Approach > Materiality (see page 41)
Indirect Economic Impacts
GRI 103: Management Approach 2016
GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
Sustainability Approach > Responsible Supply Chain (see page 44)
Social Impact > Our Approach (see page 62)
Social Impact > Our Approach > Economic Contributions (see page 62)
Social Impact > Manitoba (see page 64)
Social Impact > Peru (see page 66)
Social Impact > Arizona and Nevada (see page 68)
Note: We re-evaluate our management approach every three years as part
of our materiality review process; an evaluation was last conducted in 2020.
Sustainability Approach > Responsible Supply Chain > Supply Chain Performance
(see pages 44–45)
Social Impact (see page 59)
GRI 203: Indirect Economic Impacts 2016
203-2
Significant indirect economic impacts
Procurement Practices
GRI 103: Management Approach 2016
103
Management approach
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Sustainability Approach > Responsible Supply Chain (see page 44)
Social Impact > Our Approach > Local Hiring and Procurement (see page 63)
Website > Disclosure Centre > Policies > Supplier Code of Ethics
About This Report
GRI 204: Procurement Practices 2016
204-1
Proportion of spending on local suppliers
Sustainability Approach > Responsible Supply Chain (see page 44)
Anti-corruption
GRI 103: Management Approach 2016
103
Management approach
Our Company > Business Conduct (see page 14)
EM-MM-510a.1 Description of the
Our Company > Business Conduct > Compliance Training (see page 14)
Our Company > Business Conduct > Risks, Issues or Complaints (see page 15)
Our Company > Risk Management (see page 16)
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Sustainability Approach > Responsible Supply Chain (see page 44)
Website > Disclosure Centre > Policies > Statement on Anti-Corruption
Website > Disclosure Centre > Policies > Supplier Code of Ethics
management system
for prevention
of corruption and
bribery throughout
the value chain
Hudbay 2020 Annual Sustainability Report
| Sustainability Performance
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CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
GRI 205: Anti-corruption 2016
205-1
205-2
205-3
Operations assessed for risks related
to corruption
Our Company > Business Conduct > Risks, Issues or Complaints (see page 15)
Sustainability Performance > Key Performance Data (see page 92)
Communication and training about
anti-corruption policies and procedures
Confirmed incidents of corruption and
actions taken
Sustainability Performance > Key Performance Data (see page 92)
Our Company > Business Conduct > Risks, Issues or Complaints (see page 15)
Not applicable
EM-MM-510a.2
Production in
countries that have
the 20 lowest rankings
in Transparency
International’s
Corruption
Perception Index
GRI 300: Environmental Standards Series
Energy
GRI 103: Management Approach 2016
103
Management approach
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Environment > Our Approach > Climate Change (see pages 73–74)
Sustainability Performance > 2020 Targets and Achievements (see page 99)
Sustainability Performance > 2021 Targets (see page 100)
Sustainability Performance > Key Performance Data (see page 95)
EM-MM-130a.1
Total energy consumed
CDP Report
CDP Report
CDP Report
EM-MM-130a.1
Percentage
grid electricity
EM-MM-130a.1
Percentage renewable
302-1
Energy consumption within
the organization
Water
GRI 103: Management Approach 2016
103
Management approach
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Environment > Our Approach > Water (see pages 74–75)
Sustainability Performance > 2020 Targets and Achievements (see page 99)
Sustainability Performance > 2021 Targets (see page 100)
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CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
GRI 303: Water 2016
303-1
Water withdrawal by source
Sustainability Performance > Key Performance Data (see page 96)
EM-MM-140a.1
CDP Water Report
303-3
Water recycled and reused
Sustainability Performance > Key Performance Data (see page 96)
Sustainability Performance > Key Performance Data (see page 96)
EM-MM-140a.1
CDP Water Report
Total fresh water
withdrawn, percentage
of each in regions with
high or extremely high
baseline water stress
Total fresh water
consumed, percentage
of each in regions with
high or extremely high
baseline water stress
Not applicable
EM-MM-140a.2 Number of incidents
Biodiversity
GRI 103: Management Approach 2016
103
Management approach
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Sustainability Governance > International Systems and
Performance Standards (see pages 31–32)
Sustainability Approach > Tailings Stewardship (see pages 35–36)
Sustainability Approach > Materiality (see page 41)
Environment > Our Approach (see page 73)
Environment > Our Approach > Land and Biodiversity (see page 73)
Environment > Our Approach > Closure and Reclamation (see page 75)
Sustainability Performance > 2020 Targets and Achievements (see page 99)
Sustainability Performance > 2021 Targets (see page 100)
Website > Disclosure Centre > Policies > EHS Policy
of non-compliance
associated with water
quality permits,
standards and
regulations
EM-MM-160a.1 Description of
environmental
management policies
and practices
for active sites
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CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
GRI 304: Biodiversity 2016
304-1
304-2
304-3
304-4
Operational sites owned, leased,
managed in, or adjacent to protected
areas and areas of high biodiversity
value outside protected areas
Environment > Our Approach > Land and Biodiversity (see page 73)
EM-MM-160a.3
Sustainability Performance > Key Performance Data (see page 98)
Significant impacts of activities, products
and services on biodiversity
Environment > Our Approach > Land and Biodiversity (see page 73)
Habitats protected or restored
Sustainability Performance > Key Performance Data (see page 98)
IUCN Red List species and national
conservation list species with habitats
in areas affected by operations
Sustainability Performance > Key Performance Data (see page 98)
Environment > Our Approach > Waste and Tailings (see page 75)
EM-MM-160a.2
Environment > Our Approach > Waste and Tailings (see page 75)
EM-MM-160a.2
If it is potentially contaminated by ARD, it is contoured to flow to our treatment plant.
EM-MM-160a.2
Percentage of (1)
proved and (2)
probable reserves
in or near sites with
protected conservation
status or endangered
species habitat
Percentage of mine
sites where acid rock
drainage is predicted
to occur
Percentage of mine
sites where acid
rock drainage is
actively mitigated
Percentage of mine
sites where acid
rock drainage is
under treatment
or remediation
MM1: Biodiversity
MM1
MM2: Biodiversity
MM2
Amount of land disturbed
or rehabilitated
Sustainability Performance > Key Performance Data (see page 97)
The number and percentage of total
sites identified as requiring biodiversity
management plans according to stated
criteria, and the number and percentage
of those sites with a plan in place
Sustainability Performance > Key Performance Data (see page 98)
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CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
Emissions
GRI 103: Management Approach 2016
103
Management approach
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Environment > Our Approach > Climate Change (see pages 73–74)
Sustainability Performance > 2020 Targets and Achievements (see page 99)
Sustainability Performance > 2021 Targets (see page 100)
305-1
Direct (Scope 1) GHG emissions
Sustainability Performance > Key Performance Data (see page 95)
EM-MM-110a.1
CDP Report
Note: Percentage covered under emissions-limiting regulations not available.
Environment > Our Approach > Climate Change (see pages 73–74)
Sustainability Performance > 2020 Targets and Achievements (see page 99)
Sustainability Performance > 2021 Targets (see page 100)
CDP Report
Not applicable
Not applicable
Not applicable
Sustainability Performance > Key Performance Data (see page 95)
Not applicable
Not applicable
Not applicable
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Tailings Stewardship (see pages 35–36)
Sustainability Approach > Materiality (see page 41)
Environment > Our Approach > Waste and Tailings (see page 75)
Sustainability Performance > 2020 Targets and Achievements (see page 99)
Sustainability Performance > 2021 Targets (see page 100)
Website > Disclosure Centre > Policies > EHS Policy
Effluents and Waste
GRI 103: Management Approach 2016
103
Management approach
Gross global Scope 1
emissions, percentage
covered under emissions-
limiting regulations
EM-MM-110a.2 Discussion of long-term
and short-term strategy
or plan to manage
Scope 1 emissions,
emissions reduction
targets, and analysis of
performance against
those targets
Air emissions of the
following pollutants:
EM-MM-120a.1
CO
EM-MM-120a.1 NOx (excluding N2O)
EM-MM-120a.1
SOx
EM-MM-120a.1
Particulate matter (PM10)
EM-MM-120a.1 Mercury (Hg)
EM-MM-120a.1
Lead (Pb)
EM-MM-120a.1
Volatile organic
compounds (VOCs)
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CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
GRI 306: Effluents and Waste 2016
306-1
306-2
306-3
306-4
306-5
Water discharge by quality and
destination
Sustainability Performance > Key Performance Data (see page 96)
Waste by type and disposal method
Sustainability Performance > Key Performance Data (see pages 96–97)
Significant spills
Sustainability Performance > Key Performance Data (see page 96)
Transport of hazardous waste
Sustainability Performance > Key Performance Data (see page 96)
Water bodies affected by water
discharges and/or runoff
Sustainability Performance > Key Performance Data (see page 96)
Sustainability Performance > Key Performance Data (see page 97)
EM-MM-150a.2
Total weight of mineral
processing waste,
percentage recycled
Mine Tailings Disclosure table
EM-MM-150a.3 Number of tailings
Sustainability Performance > Key Performance Data (see page 96)
EM-MM-150a.1
impoundments,
broken down by MSHA
hazard potential
Total weight of
tailings waste,
percentage recycled
MM3: Effluents and Waste
MM3
Total amount of overburden,
rock, tailings and sludges and
their associated risks
GRI 400: Social Standards Series
Employment
GRI 103: Management Approach 2016
103
Management approach
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Our People > Our Approach > Employee Relations (see page 52)
Our People > Our Approach > Building a Highly Effective Organization (see pages 52–53)
Our People > Our Approach > Diversity and Inclusion (see page 53)
Our People > Manitoba (see pages 54–55)
Our People > Peru (see pages 56–57)
GRI 401: Employment 2016
401-1
401-2
New employee hires and employee
turnover
Benefits provided to full-time
employees that are not provided
to temporary or part-time employees
Sustainability Performance > Key Performance Data (see page 87)
Sustainability Performance > Key Performance Data (see page 91)
401-3
Parental leave
Sustainability Performance > Key Performance Data (see page 91)
Parental leave is tracked by business unit and employment level.
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CEO Message
103
Management approach
Labour/Management Relations
GRI 103: Management Approach 2016
GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
GRI 402: Labour/Management Relations 2016
402-1
Minimum notice periods regarding
operational changes
MM4: Labour/Management Relations
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Our People > Our Approach > Employee Relations (see page 52)
Our People > Manitoba (see pages 54–55)
Our People > Peru (see pages 56–57)
Sustainability Performance > Key Performance Data (see page 86)
EM-MM-310a.1
Percentage of active
workforce covered
under collective
bargaining agreements,
broken down by US
and foreign employees
MM4
Number of strikes and lockouts exceeding
one week’s duration, by country
Sustainability Performance > Key Performance Data (see page 86)
EM-MM-310a.2 Number and duration
of strikes and lockouts
Occupational Health and Safety
GRI 103: Management Approach 2016
103
Management approach
GRI 403: Occupational Health and Safety 2016
403-1
403-2
Workers’ representation in formal
joint management–worker health
and safety committees
Types of injury and rates of injury,
occupational diseases, lost days
and absenteeism, and number
of work-related fatalities
Our Feature Case Studies > Responding to COVID-19: Resilience in Action (see page 8)
Our Company > Risk Management > Emergency Response and Crisis Management
(see page 17)
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Our People (see page 48)
Our People > Our Approach > Health and Safety (see pages 51–52)
Our People > Our Approach > Employee Relations (see page 52)
Sustainability Performance > 2020 Targets and Achievements (see page 99)
Sustainability Performance > 2021 Targets (see page 100)
Website > Disclosure Centre > Policies > EHS Policy
Sustainability Performance > Key Performance Data (see page 89)
Sustainability Performance > Key Performance Data (see pages 89–91)
EM-MM-320a.1 MSHA all-incidence
rate for (a) full-time
employees and (b)
contract employees.
Fatality rate for (a) full-
time employees and
(b) contract employees
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CEO Message
103
Management approach
Our Company > Risk Management (see page 16)
Security Practices
GRI 103: Management Approach 2016
GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
Our Company > Risk Management > Emergency Response and Crisis Management
(see page 17)
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Human Rights and Security > Security Practices (see page 34)
Sustainability Approach > Materiality (see page 41)
Website > Disclosure Centre > Policies > EHS Policy
Website > Disclosure Centre > Policies > Human Rights Policy
Sustainability Performance > Key Performance Data (see page 93)
GRI 410: Security Practices 2016
410-1
Security personnel trained in human
rights policies or procedures
Rights of Indigenous Peoples
GRI 103: Management Approach 2016
103
Management approach
Sustainability Approach > Sustainability Governance (see page 30)
EM-MM-210a.3 Discussion of
Sustainability Approach > Human Rights and Security (see page 33)
Sustainability Approach > Stakeholder Engagement (see page 39)
Sustainability Approach > Materiality (see page 41)
Our People > Our Approach > Diversity and Inclusion (see page 53)
Social Impact > Our Approach > Indigenous Engagement (see pages 62–63)
Social Impact > Manitoba > Engaging with Indigenous Communities (see pages 64–65)
Website > Disclosure Centre > Policies > Human Rights Policy
There were zero violations in 2020.
Sustainability Performance > Key Performance Data (see page 94)
EM-MM-210a.2
engagement processes
and due diligence
practices with respect
to human rights,
Indigenous rights,
and operation in areas
of conflict
Percentage of
(1) proved and
(2) probable
reserves in or near
Indigenous land
GRI 411: Rights of Indigenous Peoples 2016
411-1
Incidents of violations involving
rights of Indigenous peoples
MM5: Indigenous Rights
MM5
Total number of operations taking place
in or adjacent to Indigenous peoples’
territories, and number and percentage
of operations or sites where there are
formal agreements with Indigenous
peoples’ communities
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CEO Message
103
Management approach
Our Company > Business Conduct > Risks, Issues or Complaints (see page 15)
Human Rights Assessment
GRI 103: Management Approach 2016
GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
Our Company > Risk Management (see page 16)
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Human Rights and Security (see page 33)
Sustainability Approach > Materiality (see page 41)
Sustainability Approach > Responsible Supply Chain (see page 44)
Our People > Our Approach > Diversity and Inclusion (see page 53)
Website > Disclosure Centre > Policies > Human Rights Policy
Sustainability Performance > Key Performance Data (see page 93)
Website > Disclosure Centre > Policies > Supplier Code of Conduct and Ethics
GRI 412: Human Rights Assessment 2016
412-2
412-3
Employee training on human rights
policies or procedures
Significant investment agreements
and contracts that include human
rights clauses or that underwent
human rights screening
Local Communities
GRI 103: Management Approach 2016
103
Management approach
Our Company > Business Conduct > Risks, Issues or Complaints (see page 15)
EM-MM-210b.1 Discussion of process
Our Company > Risk Management (see page 16)
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Sustainability Approach > Responsible Supply Chain (see page 44)
Our People > Our Approach > Diversity and Inclusion (see page 53)
Social Impact > Our Approach > Community Relations (see page 62)
Social Impact > Our Approach > Local Hiring and Procurement (see page 63)
Social Impact > Our Approach > Community Development (see page 63)
Sustainability Performance > Key Performance Data (see page 94)
to manage risks
and opportunities
associated with
community rights
and interests
Sustainability Performance > Key Performance Data (see page 92)
EM-MM-210b.1 Number and duration
of non-technical delays
GRI 413: Local Communities 2016
413-2
Operations with significant actual
and potential negative impacts
on local communities
MM6: Local Communities
MM6
Number and description of significant
disputes relating to land use, customary
rights of local communities and
Indigenous peoples
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GRI Standard
Disclosure
Response, page number(s) and/or URL(s)
SASB Code
SASB Metric
CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
MM7: Local Communities
MM7
The extent to which grievance
mechanisms were used to resolve
disputes relating to land use, customary
rights of local communities and
Indigenous peoples, and the outcomes
Artisanal and Small-Scale Mining
MM8: Artisanal and Small-Scale Mining
MM8
Number and percentage of company
operating sites where artisanal and small-
scale mining (ASM) takes place on, or
adjacent to, the site; the associated risks
and the actions taken to manage and
mitigate these risks
Resettlement
GRI 103: Management Approach
Sustainability Performance > Key Performance Data (see page 93)
Sustainability Performance > Key Performance Data (see page 94)
103
Management approach
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Social Impact > Our Approach > Resettlement and Land Use (see pages 63–64)
Sustainability Performance > Key Performance Data (see page 92)
MM9: Resettlement
MM9
Sites where resettlements took place,
the number of households resettled
in each, and how their livelihoods were
affected in the process
Closure Planning
GRI 103: Management Approach
103
Management approach
Sustainability Approach > Sustainability Governance (see page 30)
Sustainability Approach > Materiality (see page 41)
Social Impact > Our Approach (see page 62)
Social Impact > Manitoba > Preparing for Closure Impacts and Transition (see page 64)
Environment > Our Approach > Land and Biodiversity (see page 73)
Environment > Our Approach > Closure and Reclamation (see page 75)
Website > Disclosure Centre > Policies > EHS Policy
MM10: Closure Planning
MM10
Number and percentage of operations
with closure plans
Sustainability Performance > Key Performance Data (see page 94)
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TCFD Recommendations
Response, page number(s) and/or URL(s)
TCFD Disclosures
Governance
CEO Message
A Describe the Board’s oversight of climate-related risks
Sustainability Approach > Sustainability Governance (see page 30)
and opportunities.
CDP Report
Our Feature Case Studies
B Describe management’s role in assessing and managing
Sustainability Approach > Sustainability Governance (see page 30)
climate-related risks and opportunities.
Environment > Our Approach > Climate Change (see pages 73–74)
Our Company
Business and
Financial Review
Strategy
CDP Report
A Describe the climate-related risks and opportunities the
organization has identified over the short, medium and
long term.
Environment > Our Approach > Climate Change (see pages 73–74)
Annual Information Form (see pages 43 and 44)
CDP Report
Sustainability Approach
B Describe the impact of climate-related risks and
Annual Information Form (see pages 43 and 44)
Our People
Social Impact
Environment
opportunities on the organization’s businesses, strategy and
financial planning.
CDP Report
C Describe the resilience of the organization’s strategy, taking
Annual Information Form (see page 32)
into consideration different climate-related scenarios,
including a 2°C or lower scenario.
CDP Report
Risk Management
A Describe the organization’s processes for identifying and
Annual Information Form (see page 99)
assessing climate-related risks.
CDP Report
Sustainability Performance
B Describe the organization’s processes for managing climate-
Environment > Our Approach > Climate Change (see pages 73–74)
About This Report
related risks.
C Describe how processes for identifying, assessing and
managing climate-related risks are integrated into the
organization’s overall risk management.
Metrics and Targets
A Disclose the metrics used by the organization to assess
climate-related risks and opportunities in line with its
strategy and risk management process.
CDP Report
CDP Report
Environment > Our Approach > Climate Change (see pages 73–74)
B Disclose Scope 1, Scope 2 and, if appropriate, Scope 3
greenhouse gas (GHG) emissions, and the related risks.
Sustainability Performance > Key Performance Data (see page 95)
Environment > Our Approach > Climate Change (see pages 73–74)
C Describe the targets used by the organization to manage
climate-related risks and opportunities and performance
against targets.
Annual Information Form (see page 32)
Sustainability Performance > 2021 Targets (see page 100)
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CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
ABOUT
THIS REPORT
Since 2014, we have combined our annual report and our sustainability disclosures
into a single report. The title of this report has evolved over time, and for 2020 we
have simplified the name to Annual Sustainability Report. This report still incorporates
the same scope of content, presenting our approach to achieving success as a
sustainable business and how we have performed across financial, operational, social
and environmental dimensions. We believe social and environmental performance
is as important as financial and operating performance, and that combining the reports
presents a holistic account of the Company’s activities in 2020.
Hudbay 2020 Annual Sustainability Report
| About This Report
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CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
We published our Management’s Discussion and
Analysis of Results of Operations and Financial
Condition and the consolidated financial statements
for the year ended December 31, 2020, on
February 18, 2021. The reports are posted on our
website. The Business and Financial Review section
of this report is based upon the financial and
operational results disclosed in those documents.
We have produced an annual sustainability report
every year since our 2003 report, and this is our 13th
report based on the Global Reporting Initiative (GRI)
Sustainability Reporting Guidelines. Our most recent
previous report was released in May 2020. This report
contains standard disclosures from the GRI
Sustainability Reporting Standards, prepared largely in
accordance with the Core option.
Our report covers all operating and project locations
reported under Our Company, as well as exploration
activities managed by Hudbay in Chile during the 2020
calendar year. Sustainability report content has been
defined based on our materiality analysis and aspects
identification process, which applied to all of Hudbay’s
operating assets.
More information on the scope of our reporting is
available in the Sustainability Performance section of
this report.
Qualified Person
The technical and scientific information in this
report related to the Rosemont project has been
approved by Cashel Meagher, P. Geo., Hudbay’s Senior
Vice President and Chief Operating Officer. The
technical and scientific information related to our
other material projects contained in this report has
been approved by Olivier Tavchandjian, P. Eng.,
Hudbay’s Vice President of Exploration and Geology.
Messrs. Meagher and Tavchandjian are qualified
persons pursuant to NI 43-101. For a description of
the key assumptions, parameters and methods used
to estimate mineral reserves and resources, as well as
data verification procedures and a general discussion
of the extent to which the estimates of scientific and
technical information may be affected by any known
environmental, permitting, legal title, taxation,
socio-political, marketing or other relevant factors,
please see the Technical Reports for the Company’s
material properties as filed by Hudbay on SEDAR at
www.sedar.com.
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| About This Report
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CEO Message
Our Feature Case Studies
Our Company
Business and
Financial Review
Sustainability Approach
Our People
Social Impact
Environment
Sustainability Performance
About This Report
Forward-Looking Information
This Annual Sustainability Report contains forward-
looking information within the meaning of applicable
Canadian and United States securities legislation. All
information contained in this report, other than
statements of current and historical fact, is forward-
looking information. Often, but not always, forward-
looking information can be identified by the use of
words such as “plans”, “expects”, “budget”,
“guidance”, “scheduled”, “estimates”, “forecasts”,
“strategy”, “target”, “intends”, “objective”, “goal”,
“understands”, “anticipates” and “believes” (and
variations of these or similar words) and statements
that certain actions, events or results “may”, “could”,
“would”, “should”, “might” “occur” or “be achieved” or
“will be taken” (and variations of these or similar
expressions). All of the forward-looking information in
this annual report is qualified by this cautionary note.
Forward-looking information includes, but is not
limited to, production, cost and capital and exploration
expenditure guidance and potential revisions to such
guidance, anticipated environmental, health and safety
performance, anticipated social development
programs, anticipated production at our mines and
processing facilities, expectations regarding the impact
of the COVID-19 pandemic on our operations, financial
conditions and prospects, and our ability to effectively
engage with local communities in Peru and other
stakeholders, expectations regarding the timing of
mining activities at the Pampacancha deposit and any
additional delivery obligations under the Constancia
stream agreement, the anticipated timing, cost and
benefits of developing the Rosemont project and the
outcome of litigation challenging Rosemont’s permits,
expectations regarding the Copper World exploration
program, expectations regarding the Lalor gold strategy,
including the refurbishment, commissioning and
ramp-up of the New Britannia mill and the expectations
regarding the mine plan for the 1901 deposit,
increasing the mining rate at Lalor and optimizing the
Stall and New Britannia mills, the possibility of
converting inferred mineral resource estimates to
higher confidence categories, the potential and our
anticipated plans for advancing our mining properties
surrounding Constancia and elsewhere in Peru,
anticipated mine plans, anticipated metals prices and
the anticipated sensitivity of our financial performance
to metals prices, events that may affect our operations
and development projects, anticipated cash flows from
operations and related liquidity requirements, the
anticipated effect of external factors on revenue, such
as commodity prices, estimation of mineral reserves
and resources, mine life projections, reclamation costs,
economic outlook, environmental regulation and
legislation and other government regulation of mining
operations, and business and acquisition strategies.
Forward-looking information is not, and cannot be, a
guarantee of future results or events. Forward-looking
information is based on, among other things, opinions,
assumptions, estimates and analyses that, while
considered reasonable by us at the date the forward-
looking information is provided, are inherently subject
to significant risks, uncertainties, contingencies and
other factors that may cause actual results and events
to be materially different from those expressed or
implied by the forward-looking information.
The material factors or assumptions that we identified
and were applied by us in drawing conclusions or
making forecasts or projections set out in the forward-
looking information include, but are not limited to:
• no significant interruptions to our operations or
significant delays to our development projects in
Manitoba and Peru due to the COVID-19 pandemic;
• the availability of spending reductions and
liquidity options;
• the timing of development and production activities
on the Pampacancha deposit;
• no significant unanticipated delays to the
development of Pampacancha;
• the successful completion of the New Britannia
project on budget and on schedule;
• the successful outcome of the Rosemont litigation;
• the successful renegotiation of collective
agreements with the labour unions that represent
certain of our employees in Manitoba and Peru;
• the success of mining, processing, exploration
and development activities;
• the scheduled maintenance and availability
of our processing facilities;
• the accuracy of geological, mining
and metallurgical estimates;
• anticipated metals prices and the costs
of production;
• the supply and demand for metals we produce;
• the supply and availability of all forms of energy and
fuels at reasonable prices;
• no significant unanticipated operational
or technical difficulties;
• our availability to continue to operate safely and at
• the execution of our business and growth
full capacity during the COVID-19 pandemic;
• the availability, global supply and effectiveness of
COVID-19 vaccines, the effective distribution of such
vaccines in the countries in which we operate, the
lessening of restrictions related to COVID-19, and the
anticipated rate and timing for each of the foregoing;
strategies, including the success of our strategic
investments and initiatives;
• the availability of additional financing, if needed;
• the ability to complete project targets on time and
on budget and other events that may affect our
ability to develop our projects;
• the ability to achieve production and unit
• the timing and receipt of various regulatory and
cost guidance;
governmental approvals;
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• the availability of personnel for our exploration,
development and operational projects and ongoing
employee and union relations;
• maintaining good relations with the labour unions
that represent certain of our employees in
Manitoba and Peru;
• maintaining good relations with the communities in
which we operate, including the neighbouring
Indigenous communities and local governments;
• no significant unanticipated challenges with
stakeholders at our various projects;
• no significant unanticipated events or changes
relating to regulatory, environmental or health and
safety matters;
• no significant unanticipated changes to the various
international and national standards we adhere to;
• no significant unanticipated changes to our water
usage, emissions intensity or energy intensity;
• no significant unanticipated changes in the political
climate in the various jurisdictions in which we
currently or plan to explore or operate;
• the ability to contemplate the effects of climate
change at our sites, on our operations and on the
extractive industry in general;
• no contests over title to our properties including as
a result of rights or claimed rights of Indigenous
peoples or challenges to the validity of our
unpatented mining claims;
• the timing and possible outcome of pending
litigation and no significant unanticipated litigation;
• certain tax matters, including, but not limited to,
current tax laws and regulations and the refund of
certain value-added taxes from the Canadian and
Peruvian governments; and
• no significant and continuing adverse changes in
general economic conditions or conditions in the
financial markets (including commodity prices and
foreign exchange rates).
The risks, uncertainties, contingencies and other
factors that may cause actual results to differ
materially from those expressed or implied by the
forward-looking information may include, but are not
limited to, risks generally associated with the mining
industry, such as economic factors (including future
commodity prices, currency fluctuations, energy prices
and general cost escalation), uncertainties related to
the development and operation of our projects, risks
related to the US District Court’s recent decisions to
set aside the US Forest Service’s FROD and the
Biological Opinion for Rosemont and related appeals
and other legal challenges, risks related to the new
Lalor mine plan, including the schedule for the
refurbishment, commissioning and ramp-up of the
New Britannia mill and the ability to convert inferred
mineral resource estimates to higher confidence
categories, risks related to the schedule for mining
the Pampacancha deposit (including risks associated
with COVID-19 and risks associated with the impact of
any schedule delays), dependence on key personnel
and employee and union relations, risks related to
political or social unrest or change, risks in respect of
Indigenous and community relations, rights and title
claims, operational risks and hazards, including
unanticipated environmental, industrial and geological
events and developments and the inability to insure
against all risks, failure of plant, equipment, processes,
transportation and other infrastructure to operate as
anticipated, compliance with government and
environmental regulations, including permitting
requirements and anti-bribery legislation, depletion of
our reserves, volatile financial markets that may affect
our ability to obtain additional financing on acceptable
terms, the failure to obtain required approvals or
clearances from government authorities on a timely
basis, uncertainties related to the geology, continuity,
grade and estimates of mineral reserves and
resources, and the potential for variations in grade
and recovery rates, uncertain costs of reclamation
activities, our ability to comply with our pension and
other post-retirement obligations, our ability to abide
by the covenants in our debt instruments and other
material contracts, tax refunds, hedging transactions,
as well as the risks discussed under the heading “Risk
Factors” in our 2020 Annual Information Form (AIF),
and otherwise throughout this annual report.
Should one or more risk, uncertainty, contingency or
other factor materialize or should any factor or
assumption prove incorrect, actual results could vary
materially from those expressed or implied in the
forward-looking information. Accordingly, you should
not place undue reliance on forward-looking
information. We do not assume any obligation to
update or revise any forward-looking information
after the date of this annual report or to explain any
material difference between subsequent actual
events and any forward-looking information, except
as required by applicable law.
Note to United States Investors
This report has been prepared in accordance with
the requirements of the securities laws in effect in
Canada, which may differ materially from the
requirements of United States securities laws
applicable to US issuers.
Contact Us
We invite your comments and questions
about this report.
For investor relations matters,
please contact Candace Brûlé,
Director, Investor Relations,
416 814-4387, investor.relations@hudbay.com.
For sustainability matters,
please contact David Clarry,
Vice President, Corporate Social Responsibility,
416 362-7364, david.clarry@hudbay.com.
Annual and Special Meeting of Shareholders
May 17, 2021 at 1:00 p.m. E.T.
Toronto, Ontario
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Glossary
Biodiversity – short for “biological diversity”; the
variety of living organisms, genetic diversity and
habitat diversity that creates and sustains variation in
the environment
CDP – a non-profit that runs a global disclosure system
for companies and governments to disclose their
environmental performance
Community investment – voluntary investment of
funds in the broader community, including for physical
infrastructure and social programs
Conflict-free minerals – mineral production that does
not contribute to serious human rights abuses in
regions of armed conflict (drawing on the definitions
provided in the Dodd–Frank Act)
Contractor – one who agrees to perform work or
supply items at a certain price or rate
COVID-19 – an infectious disease caused by a novel
coronavirus called severe acute respiratory syndrome
coronavirus 2 (SARS-CoV-2)
Donations – contributions to charities
Employee – a person directly employed by Hudbay
and/or its subsidiaries
GHG emissions – greenhouse gas emissions
Global Reporting Initiative (GRI) – an independent
institution whose mission is to develop and
disseminate globally applicable sustainability reporting
guidelines. For more information,
visit www.globalreporting.org
GRI Standards – performance indicators contained in
the GRI Sustainability Reporting Standards
Recordable injury – includes lost time injuries,
restricted work injuries and medical aid injuries
Grant in lieu – an amount paid instead
of property taxes
Injury frequency – number of injuries per 200,000 hours
worked (approximately per 100 full-time employees)
ISO – International Organization for Standardization, a
non-governmental international organization that
develops voluntary management standards
Lost time injury (LTI) – a work-related injury that
prevents the injured person from returning to work on
his/her next scheduled workday after the day the
injury occurred, because he/she is unfit to perform any
duties
MAC – Mining Association of Canada
Material information – a fact or a change to the
Company that could reasonably be expected to have a
significant effect on the market price or value of the
securities of the Company
Materiality – a process to identify the economic,
environmental, governance and social issues most
important to stakeholders and our business
Medical aid injury – a work-related injury that requires
medical treatment based on criteria set
out by the International Council on Mining and
Metals (ICMM)
N/ap – not applicable
N/av – not available
Restricted work – a work-related injury where
a licensed health care provider or the employer
recommends that the employee not perform one
or more routine job functions or not work the usual
full workday
SASB – Sustainability Accounting Standards Board, a
set of standards to guide the disclosure of financially
material sustainability information
SDGs – the 17 United Nations Sustainable
Development Goals that were established in 2015 and
aim to achieve a better and more sustainable future
for all by 2030
Tailings – the fine waste rock that remains after
separating the valuable minerals from the ore during
mining and processing of mineral resources. Tailings
may contain trace quantities of metals found in the
host ore, as well as added compounds used to extract
the minerals
TCFD – Task Force on Climate-related Financial
Disclosures, a framework created by the Financial
Stability Board to improve and increase reporting of
climate-related financial disclosures
TSM – Towards Sustainable Mining, an initiative of the
Mining Association of Canada
Work-related injury – An injury that is work related,
and therefore included in Hudbay reporting statistics,
according to criteria established by ICMM
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