Environment Closure and Reclamation

All mines have finite lives, and all Hudbay mines and development projects have closure plans that are supported by financial provisions. Once mining is finished, we aim to leave behind land that will support productive uses for future generations.

As a member company of the Mining Association of Canada, Hudbay has committed its new projects and operations to management of mine closure in accordance with the TSM framework on mine closure. The framework consists of eight key elements, ranging from effective and sustainable closure planning, to consultation with communities, continuous improvement, and monitoring of reclamation programs. As part of this commitment, Hudbay identifies opportunities to help communities plan for sustaining economic development and incorporates community issues into long-term closure considerations.

In addition to the TSM framework, Hudbay’s mine closure planning in Peru is guided by IFC performance standards, as well as by Peruvian mine closure regulations. In all jurisdictions in which Hudbay operates, mining companies are required to plan for closure before the start of operations and to provide financial assurance to relevant regulatory agencies for proposed mine reclamation activities.

Over the course of our history, we have closed many mine sites, including some in environmentally sensitive areas. In the process, we have developed core competencies in mine closure and reclamation. Our practices include the following:

Designing for closure from the beginning – By considering closure from the start of new projects, we can incorporate design features (like buildings that can be easily dismantled) to minimize both our impact on the environment during and after operations and our costs of closure.

Progressive rehabilitation – By progressively reclaiming areas once they are no longer needed for mining activities, operations are able to start reclamation sooner and reduce the work to be done when the mine closes. We have an ongoing rehabilitation program at Flin Flon, aimed at restoring the environment in and around the complex and enhancing the visual surroundings. Activities include the removal of old structures and equipment, the reconfiguring and revegetating of tailings sites and the greening of spaces between the community and the operations.

Closed mines – Hudbay’s closed mine site activities are tailored to the applicable jurisdictional regulatory requirements and the specific and unique characteristics of each site. Closed mine site activities can include monitoring activities and adaptive management strategies to ensure the effectiveness of the reclamation activities until such time as reclamation objectives are determined, in consultation with regulators, to be complete.

2015 Performance Highlights

Peru

• Progressive rehabilitation activities at Constancia included the closure of two redundant waste rock facilities and other smaller areas used during construction. Runoff water and native seeds were used in the reclamation.
• Constancia’s closure plan was updated to incorporate recent studies and technological changes that will reduce costs and financial guarantees that Hudbay must provide annually to the Peruvian government. The updated plan was submitted in 2015 and approved by the Ministry of Energy and Mines in June.

Manitoba

• Progressive rehabilitation activities performed in Flin Flon included tailings covering, seed planting and weed control on surrounding property.

Arizona

• Rosemont supports studies by the University of Arizona’s Department of Natural Resources on reclamation techniques, procedures, and the appropriate vegetation to use. These studies are systematic and sequential, starting with a study of the existing vegetation, moving into greenhouse studies and continuing on to field tests at the Rosemont site. The results will guide the reclamation techniques that will be used and how plants will be managed. We collect data from the six reference plots and have had good success so far on seed mixtures and types of cover. The USDA Forest Service will evaluate the reference areas before issuing its final permit.