2014 Annual and CSR Report Switch to Spanish Language
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CSR Performance

Basis of Reporting

All financial information is presented in Canadian dollars. 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 metal processed. Safety data frequency rates are measured per 200,000 hours worked.

Data Measurement Techniques

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 also 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 metered. We purchase most of our electricity from local grids. Utility grid statistics are therefore used to compile purchased electricity-related GHG numbers. We generate electricity at some of our project sites (such as Constancia and Reed) and this energy is reflected in fuel consumption, and GHG numbers are calculated based on conversion factors.

Data for the indicators is collected and compiled using information submitted by each site on a standard template. We provide instruction and criteria for GRI G4 and Towards Sustainable Mining (TSM), and also supply a GHG emissions worksheet (developed by the Mining Association of Canada).

Key Performance Data

  • Economic
  • Employees
  • society
  • Environment

Economic

2014 2013 2012 2011
Direct economic value generated and distributed (in $ millions) (EC1)
Profit before tax $11.5 $(56.0) $48.4 $209.0
Revenues $573.5 $516.8 $702.6 $904.7
Operating costs
Canada (574.2) (408.8) (493.7) (543.2)
US (11.3) (2.6) (10.3) (18.2)
Peru (9.8) (10.2) (13.1) (9.5)
Chile (2.1) (2.8) (7.0) N/ap
Colombia (0.9) (3.9) (4.5) N/ap
Total $(598.3) $(428.3) $(528.6) $(574.1)
Employee wages and benefits
Canada 172.8 165.6 190.5 188.4
US 5.1 1.1 1.9 2.2
Peru 22.8 16.2 11.9 6.6
Chile 0.0 1.2 1.8 N/ap
Colombia 0.2 1.2 1.3 N/ap
Total $200.9 $185.3 $207.4 $199.4
Payments to government
Taxes paid
Canada (23.3) 5.8 59.3  
US 0.1 0.0 0.7  
Peru 6.4 1.6 0.0  
Chile 0.0 0.0 0.0  
Colombia 0.0 0.0 0.2  
Total $(16.8) $7.4 $60.2 $90.3
Municipal taxes and grants
Canada 8.6 7.8 7.5  
US 0.6 0.7 0.0  
Peru 0.0 0.0 0.0  
Chile 0.0 0.0 0.0  
Colombia 0.0 0.0 0.0  
Total $9.2 $8.5 $7.5  
Penalties and interest paid
Canada 0.0 0.0 0.0  
US 0.3 0.0 0.0  
Peru 0.2 0.0 0.0  
Chile 0.0 0.0 0.0  
Colombia 0.0 0.0 0.0  
Total $0.5 $0.0 $0.0  
Payments to providers of capital
Dividends paid $4.3 $18.9 $34.4 $34.4
Interest payments made to providers of loans $91.6 $58.5 $0.0 N/av
Financing fees paid  
Canada 1.0 2.9 6.0 N/av
Peru 5.1 0.0 4.6 N/av
Total $6.1 $2.9 $10.6 N/av
Other interest paid
Canada 0.0 0.0 0.1 N/av
Peru 0.0 0.0 0.0 N/av
Total $0.0 $0.0 $0.1 N/av
Capital expenditures – cash flow basis $982.7 $905.0 $510.5 $254.5
Cash and cash equivalents $207.3 $631.4 $1,337.1 $899.1
Payments – Local communities for land use (in $000s)
Canada 0.0 0.0 0.0 0.0
US 0.0 0.0 0.0 0.0
Peru 1,954.0 11,324.3 24,313.3 73.0
Total land use payments $1,954.0 $11,324.3 $24,313.3 $73.0
Public benefit
Community investment (in $000s)
Canada 0.0 317.8 431.6 478.0
US 0.0 49.9 55.7 0.0
Peru 3,711.0 4,204.9 756.0 427.0
Chile 0.0 0.0 0.0  
Colombia 0.0 0.0 22.4  
Subtotal – Community investments $3,711.0 $4,572.6 $1,265.7 $1,167.0
Charitable donations (in $000s)
Canada 665.6 352.3 627.3  
US 235.1 0.0 5.0
Peru 0.0 0.0 0.0
Chile 0.0 0.0 0.0  
Colombia 0.0 0.0 1.1  
Total charitable donations $900.7 $352.3 $633.4 $536.0
Total community investments and donations $4,611.7 $4,924.9 $1,899.1 $1,703.0
Resettlement investment (Peru) (in $000s) $7,857.0 $16,429.9 $8,262.4 N/ap
Production (contained metal in concentrate)
Copper (000 tonnes)  37.6 29.9 39.6 54.3
Zinc (000 tonnes)  82.5 86.5 80.9 75.8
Gold (000 troy ounces)  73.4 79.2 86.6 94.6
Silver (000 troy ounces)  745.9 772.5 824.0 875.8
Metal production
Zinc metal (000 tonnes) 105.1 96.3 100.7 107.7

Employees

2014 2013 2012 2011
Total workforce (G4-10)
Number of full-time employees
MBU 1,391
Flin Flon, MB 1,155 1,116 1,179
Snow Lake, MB 210 158 104
Winnipeg, MB 8 7 3
Toronto, ON 61 52 65 53
Gouveneur, NY 8 8 8 9
Stephenson, MI 0 2 2 8
Tuscon, AZ 34 N/ap N/ap N/ap
Peru 174 157 131 74
Colombia 0 1 15 N/ap
Chile 0 1 14 N/ap
Total full-time employees 1,668 1,594 1,516 1,430
Employment1
Number of part-time employees  
MBU 14 N/av – See total below
Toronto, ON 0 N/av – See total below
Tuscon, AZ 2 N/av – See total below
Gouveneur, NY 2 N/av – See total below
Peru 0 N/av – See total below
Chile 0 N/av – See total below
Total part-time employees 18 52 42 28
Number of contract (term) employees  
MBU 18 N/av – See total below
Toronto, ON 1 N/av – See total below
Tuscon, AZ 0 N/av – See total below
Gouveneur, NY 1 N/av – See total below
Peru 138 N/av – See total below
Chile 0 N/av – See total below
Total contract employees 158 23 34 10
Number of co-op and summer students hired
MBU 41 N/av – See total below
Toronto, ON 2 N/av – See total below
Tuscon, AZ 0 N/av – See total below
Gouveneur, NY 0 N/av – See total below
Peru 6 N/av – See total below
Chile 0 N/av – See total below
Total co-op/summer students 49 43 39 31
Number of contractor full-time equivalent staff
Flin Flon/Snow Lake 245 316 381 1,343
Peru 9,595 6,438 2,972 Included above
Other 54 25 6 Included above
Number of employees represented by collective bargaining agreements (LA4) 1,091 1,047 961 986
Percentage of full-time employees represented by trade unions 65.4% 65.7% 63.4% 69.0%
Number of strikes or lockouts exceeding one week (MM4) 0 0 0 0
Employee turnover2
Age distribution
<30 2.0% N/av – See overall rates below
30–50 5.4% N/av – See overall rates below
>50 3.4% N/av – See overall rates below
Gender
Male 8.9% N/av – See overall rates below
Female 1.9% N/av – See overall rates below
Region
MBU 7.1% N/av – See overall rates below
Corporate 0.4% N/av – See overall rates below
ABU 0.1% N/av – See overall rates below
Balmat 0.1% N/av – See overall rates below
Peru 3.2% N/av – See overall rates below
Chile 0.0% N/av – See overall rates below
Voluntary turnover rate (Hudbay total) 7.4% 4.3% 5.0% 5.6%
Involuntary turnover rate (Hudbay total) 3.4% 4.1% N/av N/av
New employee hires2, 3
Age distribution
<30 5.2% N/av N/av N/av
30–50 14.6% N/av N/av N/av
>50 3.1% N/av N/av N/av
Gender
Male 18.9% N/av N/av N/av
Female 4.0% N/av N/av N/av
Region
MBU 9.3% N/av N/av N/av
Corporate 0.4% N/av N/av N/av
ABU 2.2% N/av N/av N/av
Balmat 0.1% N/av N/av N/av
Peru 11.0% N/av N/av N/av
Chile 0.0% N/av N/av N/av
Person-hours of work (including contractors)
North America 3,359,663 3,245,625 3,329,467 3,540,416
South America 20,458,806 13,781,606 6,459,441 1,322,371
Total person-hours 23,818,469 17,027,231 9,788,908  5,606,821
Net number of full-time employees added (decreased)2
Canada 27 79 7  (161)
US 32 0  (7)  (10)
Peru 17 26 57  74
Colombia (1)  (14) 15  N/ap 
Chile (1)  (13) 14  N/ap 
Total 74 78 86  (97)
Workforce represented in formal joint management-worker Health and Safety Committees (LA5)
Percentage represented 100% 100%
Health and safety performance (per 200,000 hours worked, except where noted) (LA6)
Lost time accident frequency (LTA)
Manitoba 1.0 0.7
Manitoba contractors 0.8 0.3
Peru 0.0 0.0
Peru contractors 0.0 0.2
North America (not including MBU) 0.0 0.0
North America contractors (not including MBU) 0.0 0.0
South America (not including Peru) 0.0 0.0
South America contractors (not including Peru) 0.0 44.1
Total 0.1 0.4 0.3 0.3
Lost time accident severity (SEV)      
Manitoba 36.5 34.4
Manitoba contractors 23.2 0.3
Peru 0.0 0.0
Peru contractors 0.2 7.1
North America (not including MBU) 0.0 0.0
North America contractors (not including MBU) 0.0 0.0
South America (not including Peru) 0.0 0.0
South America contractors (not including Peru) 0.0 163.0
Total   4.7 11.0 3.3 7.6
Restricted work case frequency (RWC)      
Manitoba 2.2 1.6
Manitoba contractors 0.4 0.6
Peru 0.0 0.0
Peru contractors 0.0 0.4
North America (not including MBU) 0.0 0.0
North America contractors (not including MBU) 0.0 0.0
South America (not including Peru) 0.0 0.0
South America contractors (not including Peru) 0.0 0.0
Total  0.3 0.6 0.8 1.5
Medical aid frequency (MA)        
Manitoba 12.8 12.1
Manitoba contractors 12.9 8.8
Peru 0.0 0.6
Peru contractors 0.5 0.9
North America (not including MBU) 1.2 0.0
North America contractors (not including MBU) 2.1 0.0
South America (not including Peru) 0.0 0.0
South America contractors (not including Peru) 0.0 70.5
Total  2.1 3.0 4.7 7.1
First aid frequency (FA)      
Manitoba 28.5 26.0
Manitoba contractors 8.2 3.7
Peru 0.4 1.8
Peru contractors 1.3 2.4
North America (not including MBU) 3.7 0.0
North America contractors (not including MBU) 8.3 0.0
South America (not including Peru) 0.0 28.1
South America contractors (not including Peru) 0.0 136.6
Total 4.4 6.2 7.6 12.7
Fatality (number) 0 0 0 0
Absentee rate (as a % of hours scheduled to be worked) N/av N/av N/av N/av
Reportable occurrences (defined as EHS incidents required by Hudbay policy to be reported to our Board of Directors) 81 127  73 33
Employees receiving regular performance and career development reviews (LA11)
Percentage reviewed4 22% 26%
Hudbay total workforce age distribution (LA12)
<30 13.8% 11.4% 11.1% 10.1%
30–50 47.8% 47.4% 50.0% 49.0%
>50 36.6% 41.2% 38.9% 40.9%
Composition of governance bodies and breakdown of employees
Workforce diversity
Female
MBU 182 N/av N/av N/av
Toronto, ON 27 N/av N/av N/av
Tuscon, AZ 15 N/av N/av N/av
Gouveneur, NY 0 N/av N/av N/av
Peru 35 N/av N/av N/av
Chile 0 N/av N/av N/av
Percentage of total workforce that are female 16% 17% 15% 12%
Aboriginal N/av5 13% 11% 11%
Disabled N/av5 5% 6% 7%
Visible minorities N/av5 5% 6% 5%
Composition of executive management and corporate governance bodies
Board of Directors (ratio male to female) 10:1 9:1 10:0 8:0
Age distribution  
<30 0% 0% 0% 0%
30–50 10% 10% 10% 12%
>50 90% 90% 90% 88%
Executive management (ratio male to female)6 10:1 10:1 11:1 11:1
Age distribution
<30 0% 0% 0% 0%
30–50 73% 64% 58% 50%
>50 27% 36% 42% 50%
Ratio of annual compensation of highest paid individual to mean total compensation (G4-54)
Canada (Manitoba Business Unit, excluding Corporate office) 6.1:1 8.9:1 7.2:1
Canada (including Corporate office) 29.8:1 23.5:1 20.0:1
Peru 9.5:1 11.3:1 12.8:1
United States (Arizona Business Unit) 3.1:1

Benefits 2014

Corporate MBU
Full time Part time Full time Part time
Life insurance Yes No Yes Members of 9338 when meeting specified critieria
Health care Yes No Yes Members of 9338 when meeting specified critieria
Disability and invalidity coverage Yes No Yes No
Parental leave Yes No Yes No
Retirement provision Yes No Yes No
Stock ownership Yes No Yes No
Other – Critical illness insurance Yes No Management only No
Other – Accidental death and dismemberment insurance Yes No Yes No
Peru ABU
Full time Part time Full time Part time
Life insurance Yes N/ap Yes No
Health care Yes N/ap Yes No
Disability and invalidity coverage Yes N/ap Yes No
Parental leave Yes N/ap 0 0
Retirement provision Yes N/ap Yes (401k) No
Stock ownership Yes N/ap Yes No
Other – Critical illness insurance Yes N/ap No No
Other – Accidental death and dismemberment insurance Yes N/ap Yes No
  1. Updated to reflect new G4-10 guidelines. Separated out to report employment type by region for 2014; therefore, data for the previous three years is not available (N/av) in this format as only Hudbay totals were reported previously.
  2. In the course of integrating Augusta and the Rosemont project into our activities, Hudbay evaluated each employee for the fit of their capabilities and career aspirations to the Hudbay organization.  After a 90-day evaluation period, all but nine of the Augusta employees were hired as Hudbay employees. Transition packages were provided to the Augusta employees that were not offered positions with Hudbay.  The hiring data shown for 2014 includes those Augusta employees that were hired by Hudbay.
  3. Added to reflect G4 reporting guidelines. As per G4-LA1 – Report total number and rate of new employee hires by age, gender and region. LA1 was not broken down into these sub-sections in previous reporting years; therefore, data for the three previous years is not available (N/av).
  4. Note that only full-time staff receive this review.
  5. A new software system was implemented in 2014, but a report for this detail is not yet available.
  6. VP levels. Corporate data only.

society

2014 2013 2012 2011
Total number of incidents of discrimination (and actions taken) (HR3) 0 0 0 0
Employees trained in anti-corruption policies (SO4)1
Number – management 63 122 163 115
Number – non-management 119 241 98 70
Percent of workforce 10% 23% 17% 13%
Employees that anti-corruption policies have been communicated to
Number – management 412 N/av – See above
Percentage 22% N/av – See above
Number – non-management 485 N/av – See above
Percentage 26% N/av – See above
Governance body members that anti-corruption policies have been communicated to
Canada2 10 N/av N/av N/av
Total members communicated to 10 N/av N/av N/av
Percent communicated to 100% N/av N/av N/av
Governance body members that received training on anti-corruption
Canada2 10 N/av N/av N/av
Total members trained 10 N/av N/av N/av
Percent received training 100% N/av N/av N/av
Security practices (security personnel training) (HR7)
Hudbay security personnel trained in Human Rights policies and procedures
Number 15 N/av – Not previously reported
Percentage 100% N/av – Not previously reported
Contractor security personnel trained in Human Rights policies and procedures
Number 158 N/av – Not previously reported
Percentage 92% N/av – Not previously reported
Value of fines or sanctions for non-compliance with laws and regulations (SO8) $3,352 $1,277 $900 $400
Grievances about impacts on society (SO11)
Number filed through formal grievance mechanisms 78 110
Number addressed during reporting period 78 110
Number resolved during reporting period 67 103
Number filed prior to the reporting period that were resolved during the reporting period 32 N/av
Number of other concerns3 N/ap 704 109 62
Number of other concerns resolved N/ap 689
Closure plans (MM10)
Identify total number of operations 8 N/av N/av N/av
Number of company operations that have closure plans 10 6 7 11
Number of advanced development project closure plans 1 4 3 N/av
Percentage of total operations with closure plans 125% 100% 100% 100%
Overall financial provision representing the present value of future cash flows relating to estimated closure costs per Canadian generally accepted accounting principles $185,395 $141,566 $157,675 $146,082
  1. Added to reflect G4 reporting guidelines. SO4 was not broken down into these sub-sections in previous reporting years; therefore, data for the three previous years is not available (N/av).
  2. Governance bodies (Board of Directors) are only in Toronto, Canada and therefore other regions were excluded.
  3. This line is the formal complaints from communities; allows transparency of concerns raised which are outside of the definition of “grievance”.

Environment

2014 2013 2012 2011
Direct energy consumption by primary energy source (terajoules) (EN3)
Heavy oil 0 0 0 144
Propane 700 580 578 544
Natural gas 0 0 0 221
Diesel 1,993 1,346 475 215
Light oil 4 6 5 5
Gasoline 12 11 9 10
Total 2,708 1,943 1,067  1,138
Indirect energy consumption by primary energy source (terajoules) (EN4)
Total electricity consumed 3,322 3,048 3,127 3,392
Energy intensity (terajoules per kilotonne of metal in concentrate) (EN5) 50.2 42.9 34.8 34.4
Energy saved (EN6)
Amount saved due to conservation/efficiency improvements (1,038) (798) 265 N/av
Total water withdrawal (000 cubic metres) (EN8)
Surface water 11,287 10,789 10,687 11,321
Ground water 930 441 367 461
Rainwater collected directly and stored by the organization 4,048 N/av N/av N/av
Municipal water supplies 1 0.01 0.06 2
Total water withdrawal 16,265 11,230 11,054  11,784
Total water discharged (000 cubic metres) (EN22)1
To Flin Flon Creek/Ross Lake/Schist Lake 10,819 12,418 12,906 14,766
To Anderson Creek/Wekusko Lake 3,939 4,180 3,626 3,698
To Woosey Creek/Morgan Lake 1,184 1,123 1,368 1,491
Town of Snow Lake Sewer2 8 N/ap N/ap N/ap
To ground 1873 35 N/ap N/ap
To Oswegatchie River in NY 3,0134 1,972 1,777 3,109
To Stephenson Sewer N/ap 0 0 N/av
To land (irrigation using treated water in Peru) 0 139 10 N/ap
To Chilloroya River (Peru) 7375 N/ap N/ap N/ap
Water treated (000 cubic metres) 19,888 19,867 19,687 23,070
Total direct and indirect greenhouse gas emissions (kilotonnes of CO2-equivalent)
Direct carbon dioxide emissions (EN15) 182.28 133.26 71.52 71.37
Indirect carbon dioxide emissions (EN16) 6.91 4.84 4.60 14.89
Total 189.19 138.10 76.12 86.26
GHG intensity (EN18) 1.57 1.19 0.63 0.66
GHG emission reductions (may be qualitative only) (EN19) (51.09)  (61.98)  10.15  83.19
HFO to electric boiler fully implemented Smelter closed 
Emissions of ozone-depleting substances (kg) (EN20) 0 0 850.5 0
NOx, SOx and other significant air emissions (in kilotonnes)6 (EN21)
Sulphur dioxide emissions 0 0 0 0.00
Particulate 0.17 0.16 0.04 0.04
NOx and VOCs 0 0 0 0.01
Total number of significant spills (EN24) 12 5 3 3
Volume (m3) 102.98 3.8 1.5 47.0
Hazardous waste disposed of at external facility (tonnes) (EN25) 658.5 522.34 2,763 107
Number of fines or sanctions for non-compliance with environmental laws and regulations (EN29) 0 0 0 0
Land use (hectares) – Mineral tenure (controlled)
Manitoba 135,068.4 226,679.4 219,386.4 301,273.6
Saskatchewan 139,316.2 136,887.5 145,757.5 88,736.5
Ontario 0.0 0.0 0.0 11,058.7
Yukon 5,823.4 5,823.4 5,823.4 5,823.4
Nunavut 21.0 21.0 21.0 21.0
Total Canada 280,229.0 369,411.2 370,988.3 406,913.1
New York 31,532.3 31,570.2 31,590.4 31,590.4
Michigan 0.0 3,161.8 3,141.1 3,141.1
Arizona 0.0 N/ap N/ap N/ap
Total USA 31,532.3 34,732.0 34,731.5 34,731.5
Chile 1,531.0 1,531.0 1,531.0 1,531.0
Colombia 0.0 5,210.8 5,210.8 N/ap
Peru 0.0 26,932.5 22,532.5 25,090.3
Total South/Central America 1,531.0 33,674.3 29,274.3 26,621.3
Total 313,292.3 437,817.5 434,994.1 468,266.0
Land use (hectares) – Surface tenure (disturbed)
Manitoba 6,130.3 6,115.8 6,083.0 6,004.0
Saskatchewan 744.5 744.5 928.7 928.7
Ontario 0.0 0.0 0.0 0.0
Yukon 120.7 120.7 120.7 120.7
Nunavut 0.0 0.0 0.0 0.0
Total Canada 6,995.5 6,981.0 7,132.4 7,053.4
New York 57.7 57.7 57.7 57.7
Michigan 0.0 571.0 550.3 550.3
Arizona 0.0 N/ap N/ap N/ap
Total USA 57.7 628.7 608.0 608.0
Chile 0.0 0.0 0.0 0.0
Colombia 0.0 0.0 0.0 N/ap
Peru 0.0 4,225.8 3,774.2 1,026.3
Total South/Central America 0.0 4,225.8 3,774.2 1,026.3
Total 7,053.2 11,835.5 11,514.6 8,687.7
Percent land used vs. controlled 2.3% 2.7% 2.6% 1.9%
Sites requiring biodiversity management plans (MM2)
Number of sites legally requiring plans 0 0
Number of sites with voluntary plans 5 2
Habitats (may be qualitative only) (EN13)
Protected 0 0 0 N/av
Restored 2 22.8 11.5 N/av
  1. Water discharged from the Tom Valley exploration property is not reported.
  2. In 2014, we were able to discharge our grey water from our Lalor construction camp located in the Town of Snow Lake directly to the town’s newly upgraded waste water treatment plant.
  3. Increase attributed to discharge at our Reed mine.
  4. Increase attributed to an increase in precipitation for the reporting period in New York.
  5. Increase attributed to change in water management and the end of construction at Constancia.
  6. NOx emissions are not tracked as the government of Canada does not consider the mining sector to be significant emitters of NOx. Particulate from stack emissions are directly measured and converted to site-specific emission factors. Road dust emissions are calculated using Environment Canada’s Unpaved Industrial Road Calculator.