Hudbay 2018 Annual and CSR Report Summary

Social Impact

Hudbay’s history of successfully developing and operating mines includes making a positive impact on society through strong community relations and investments to advance sustainable communities.

Economic Engagement with Indigenous Communities

The reserve communities within the northern Manitoba region where Hudbay operates struggle with high unemployment. Helping stimulate business start-ups and small businesses and developing job skills within the indigenous communities near our operations not only helps the communities; it also benefits Hudbay by growing the base from which we hire and increasing the number of qualified suppliers from which we procure services and goods.

To help achieve this mutual benefit, in 2018 we held an economic development workshop in which individuals from three nearby communities participated in an interactive discussion on needs, challenges and ways to increase both access to bidding opportunities and the awarding of contracts.

With younger generations being the fastest growing segment of the population in the region, we also increased efforts to engage youth and students and to raise awareness about the economic, employment and training opportunities our mining operations offer. In 2018, we held mine tours with students that showcased the various careers available at our operations. In early 2019, we held a mechanics course for students that included job shadowing our heavy-duty underground mechanics. Other events and activities are planned for 2019 to not only help develop potential future talent for Hudbay, but also support broader efforts to improve the well-being of the communities near our operations.

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Helping Students Launch Experiments into Space

At our Rosemont project in Arizona, we contribute to local organizations and charities. In particular, we focus on supporting STEEAM – science, technology, engineering, environment, agriculture and math – educational initiatives.

A committee of our employees evaluates all funding requests, which include a description of the initiative and how it supports STEEAM.

In March 2018, we approved a proposal from the Catalina Foothills High School’s astronomy department that requested financial support for the hardware, tools and raw materials needed for the school’s project to conduct a near-space mission. The students used the materials to design and build a spacecraft that they launched into earth’s upper atmosphere (known as “near space”) using a large helium balloon. The spacecraft was equipped with electronics that gathered data such as air temperature, air pressure, altitude, latitude, longitude, and high-definition video and photos. The students retrieved the spacecraft via GPS technology, and plan to use it for future flights.

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Manitoba

We recognize that mining activities can be a positive socio-economic catalyst for the communities in northern Manitoba. At the same time, when mining operations cease, it can have a negative impact. We are committed to building long-term relationships, creating partnerships and developing programs to ensure a lasting, positive impact.

Peru

Since acquiring Constancia in Peru in 2011, we have entered into more than 90 agreements with different local communities and governments, demonstrating the effectiveness of our approach to ongoing, transparent, responsive and frequent engagement.

Arizona

Our Rosemont copper project is expected to be the third-largest copper producer in the US, contributing significantly to the local economy through hundreds of jobs, tax payments and support for community programs. The project’s close proximity to a large pool of skilled workers, leading universities and research institutions provides benefits as well as challenges, such as numerous stakeholder groups with diverse, and at times conflicting, interests.