2014 Annual and CSR Report Switch to Spanish Language
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Community Development

Mining can play an important role in sustainable development by acting as a catalyst for positive change. We recognize the importance of contributing to an environment in which both the community and our business can flourish.

Hudbay’s community development efforts focus on:

  • Helping communities build capacity to ensure sustained prosperity;
  • Supporting community efforts to improve the quality of the natural environment; and
  • Contributing to social cohesion and community spirit.

When we enter a region, we engage with the communities to understand their social and economic development needs and priorities. From there, we create programs focused on delivering lasting benefits, in strong collaboration with the community.

In Peru, we made specific commitments to invest in health, education and social development as part of the land use agreements with the communities of Uchucarco and Chilloroya. Multi-sectorial committees for development (CMD) comprising Hudbay and community representatives approve and oversee the projects being carried out using the proceeds of the agreements (see community investment case study).

In addition, we signed co-operation agreements with communities in our indirect areas of influence, which spell out social development projects that we will work on together within a specified voluntary budget provided by Hudbay. We also engage with different levels of government and prioritize development projects that can be implemented as public-private partnerships.

In Canada, Hudbay’s first mine gave rise to the towns of Flin Flon and Creighton, and we remain an integral part of the social and economic fabric of the region almost 90 years later. From 2008 to 2012, the Hudbay 80th Anniversary Project supported 28 projects from a $1 million capital pool established to benefit community initiatives. Today, we place heavy emphasis on educational support and training, as a means of strengthening community capacity and building a local talent pool available to Hudbay and other employers. We are a primary supporter of the Northern Manitoba Mining Academy and we have strong affiliations with local universities, colleges and high schools.

We are in the process of finalizing a corporate community investment policy that will articulate our standards for donations, sponsorships, funding to community programs and funding that flows through community agreements.

2014 Performance

  • Hudbay is re-establishing its presence in the town of Snow Lake where the new Lalor mine is located. In 2014, we helped fund construction of the Golden Vista housing development. Fourteen of the 18 suites will be used as bridge housing for Hudbay employees moving to Snow Lake with their families.
  • We donated $410,000 to community initiatives and university research benefiting the Flin Flon/Snow Lake area, primarily in the areas of health, education, environment, culture and sports. Major contributions ($10,000 or more) included:
    • The Green Project – multi-year project aimed at accelerating restoration of forest land around Flin Flon and Creighton
    • Woodland caribou research and management
    • SAFE Workers of Tomorrow conference
    • United Way of Winnipeg
    • Flin Flon Junior Bombers hockey team
    • University of British Columbia Industrial Research Chair in Hydrometallurgy
    • Indspire’s Soaring: Indigenous Youth Career Conference at the University of Manitoba – Hudbay contributed more than $25,000 to enable students from communities near our Manitoba operations to attend the conference
    • Indspire’s scholarship program: Hudbay made a $25,000 donation as the first of a three-year commitment to support university and college scholarships for Aboriginal youth in our area of northern Manitoba. These funds are matched through a federal government program, providing a total of $50,000 per year of new scholarship funding.
  • In Arizona, we are moving to assess local needs and priorities, and develop community investment plans. Contributions in 2014 included: the first of a three-year, US$10,000 per year commitment to the National Math and Science Initiative earmarked for the Sahuarita School District in Sahuarita, Arizona; more than 20 college scholarships of $1,000 to $2,000 each; sponsorship of the El Tour de Tucson cycling event; a partnership with the University of Arizona for student athletes as well as an ongoing partnership with the Department of Natural Resources to support graduate student research; and donations to local 4H clubs for STEM (science, technology, engineering and mathematics) scholarships.
  • Hudbay Peru won the Entrepreneurial Creativity Award in the public service category (Concurso Creatividad Empresarial 2014, Categoría Servicios Públicos) for creating a Technical Assistance Office that helps Chumbivilcas authorities set up the structures and processes needed to qualify for public and/or private funding of public investment projects. In a one-year period, the number of approved projects increased threefold and the municipalities in the province were slated to receive more than US$18 million in funding.
  • After three years in Peru, we have built a strong track record of investment through community agreements. Here are some examples:
Project Impact Community/
Province
Electric power distribution system Reliable electricity supply for 410 families Chilloroya
Basic sanitation system Better health conditions for 428 families (2,140 people) Chilloroya
School facilities, including buildings, virtual classrooms, sports facilities and a computer centre Benefiting more than 1,600 students and teachers Chilloroya, Uchucarco, Casa Blanca, Merques, Huaylia, Collana Alta
Farm machinery purchase Benefiting 71 people who formed a company and are expanding their business Casa Blanca
Home gardens training 113 families trained in vegetable crop production Uchurcarco, Merques, Collana Alta
Learn and Begin program 80% of students improved their reading comprehension and mathematical reasoning Chumbivilcas
Milk production improvement 75% increase in milk production benefiting 200 farmers Uchucarco
Meat and wool productivity improvement 75% increase in sheep meat and wool production benefiting 100 farmers Chilloroya
  • We have also partnered with various levels of government, universities and other organizations in Peru over the course of the last three years to provide essential services:
Institution Project/Objective
Velille District Municipality Support “Sierra Productiva” project to help agricultural entrepreneurs
Livitaca District Municipality Co-financing for improvement and expansion of basic sanitation system and Technical Institute equipment
Cusco Regional Government and Chumbivilcas Province Municipality Financing pre-investment studies for Chumbivilcas hospital
Development and Social Inclusion Ministry and Cusco Regional Government 100% financing of capabilities development for Chumbivilcas Young People Pilot Project, which helps young people make the transition from school to work
Agriculture and Irrigation Ministry Boosting agricultural and livestock development program in Chumbivilcas, through Agroideas Program, improving family income of Velille residents, using modern irrigation systems, pasture cultivation, livestock breeding, and construction and implementation of a dairy factory at Cullahuata, among others
Labour and Employment Promotion Ministry Collaborate in training, networking and employment of vulnerable populations near Constancia
Energy and Mines Ministry Support “Cocina Perú” national program through delivery of gas stoves to residents in Chumbivilcas and support the distribution and installation of solar panels in local facilities
Universidad Nacional de San Antonio Abad del Cusco (UNSAAC) and the Universidad Nacional San Agustin de Arequipa (UNSA) Scholarship funds (including the Hudbay Grant and the Hudbay Classroom) to jointly develop education and training projects and improve infrastructure
Asociacion Vida Peru Agreement to manage donations of medicines, medical equipment, educational materials and other goods from abroad, and to fund all logistics needed to deliver the goods to the poorest populations near Constancia
Lead medical and solid waste collection campaigns in local communities and surrounding districts