2014 Annual and CSR Report Switch to Spanish Language
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Local Purchasing

Hudbay makes best efforts to support local suppliers and purchase goods and services from qualified, cost-competitive vendors and contractors from the surrounding areas. We also help build the capabilities of local suppliers so they can win business from Hudbay and other customers.

Local procurement can help lower product costs, reduce delivery times and increase the number of supplier options available to Hudbay. There are generally opportunities for local businesses in construction, maintenance, transportation and catering.

In Peru, we are honouring commitments to give first consideration to local suppliers for services such as equipment rental and catering, as set out in the life of mine community agreements. We also help them register their business and formalize quality standards and procedures so they can qualify for potential business opportunities with other companies and we work with them on sales and marketing strategies.

In Manitoba, we have longstanding relationships with local transportation and construction contractors. We work closely with these suppliers, often helping them establish systems and processes to fulfill their social and environmental responsibilities.

We are currently developing a corporate policy that will record our standards for local purchasing and employment.  

2014 Performance

  • Hudbay had approximately 400 rental agreements with local entrepreneurs, who supplied equipment during construction at Constancia. Food was also purchased from 13 local caterers (businesses that the Company helped establish). In 2014, purchases from local enterprises totaled over $35 million.
  • Seventy-two companies near the Constancia project (mainly focused on heavy equipment and light vehicle services) can now bid for contracts at other mining companies, following completion of Hudbay-coordinated training and the acquisition of documentation demonstrating their capacity to maintain international health and safety, environmental and quality standards. We are combining all of the training materials and plan to publish a manual for local entrepreneurs in 2015.
  • Constancia entered an agreement to purchase 2,500 loaves of bread daily from a local bakery. We are conducting training at another local bakery so that it can qualify as a cake and pastry supplier, and we plan to do the same for local launderers and vegetable farmers.
  • In Manitoba, we attended a Snow Lake chamber of commerce meeting to explain Hudbay vendor processes and encourage suppliers to bid on our business. Seventeen Snow Lake firms were suppliers to the Company in 2014. Payments to suppliers located in our region of northern Manitoba and northeast Saskatchewan totaled $55 million in 2014.