2015 Annual and CSR Report
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Environment Water

GRI Indicators

Astute water management is an essential component of Hudbay’s growth strategy and operations. Our success depends on designing water-efficient operations and continuously monitoring our consumption and discharge, while always maintaining our commitments to local users and regulatory agencies within the jurisdictions where we operate.

Each of our sites – and each community in which we operate – has different water needs and challenges depending on the supply, demand and water quality within the watershed.

Prior to developing a project, we assess water quality and availability as part of our feasibility and environmental impact studies. These assessments also consider the water needs of local communities. Mining site designs and management plans incorporate water considerations throughout the entire mine lifecycle. Our operations are subject to extensive regulation by federal, state, provincial and local authorities, and we expect to comply with all applicable laws and regulations. Our commitment to the ISO 14001 management standard requires us to pursue continuous improvement in water management and periodically update our water-related risk assessments.

We committed under our Environment and Social Impact Assessment (ESIA) at Constancia to limit the amount of sediment discharged to the nearby Huayllachane, Soropata and Chilloroya rivers. To address issues during the rainy season, we have put in place a robust sediment management plan and installed structures designed to last for the life of the mine. Controls include barriers like check dams and silt fences, and structures for diverting water to collection and sedimentation ponds. As a final control, the water is treated before being released to the water bodies.

At Constancia, we also have a joint environmental monitoring committee of community members, government authorities and company representatives that monitors impacts resulting from the site. We provide committee members with technical training and support. An important part of the committee’s mandate is to track and record surface water quality and flows, and groundwater quality and levels.

In Manitoba, water usage is managed through water rights licences and related reporting as well as annual objectives to reduce the use of fresh water. Discharge is managed at specified discharge points using site-specific water treatment technologies and extensive water quality monitoring. The environment department tracks water quality data and reports to management on an exception basis.

In Arizona, Hudbay plans to implement technologies, such as dry-stack tailings, to minimize water use. We also plan to replace all groundwater pumped with replacement surface waters from the Central Arizona Project (CAP). Our team conducted extensive baseline studies of surface and groundwater conditions in the project area and has incorporated considerations of these conditions into the development of the design as well as future management and mitigation plans for Rosemont.

Hudbay submits an annual water report to the CDP (formerly called the Carbon Disclosure Project), which can be accessed from the CDP website.

2015 Performance Highlights

Corporate

  • Hudbay had no material non-conformances relating to discharges into water in 2015. None of the effluents discharged from Hudbay operations have a significant impact on the receiving streams or water bodies in which they are discharged. Stringent regulatory requirements must be met at the point of effluent discharge.

Manitoba

  • Total fresh water consumption rose by 0.9% due to increased production at the Lalor mine and Stall Lake mill, which more than offset reductions at Flin Flon (1%) and Reed (28%). Water usage intensity decreased by 7.8%, confirming that we are using water more efficiently.

Arizona

  • Rosemont received its Clean Water Act Section 401 certification from the Arizona Department of Environmental Quality, which is required before the Army Corps of Engineers can issue a separate permit for the project under the federal Clean Water Act.
  • Water impacts were minimal and limited to stormwater runoff from exploration drilling in 2015. Water use was primarily associated with providing drinking water, stock watering, or water for the drilling program. The drilling program used a new mud recycling process to minimize the amount of water used at each drill, which reduced normal water use by an estimated 50%. Stormwater was managed through controls placed on the disturbed areas. Inspections and samples were taken as required, and there was only a minimal amount of runoff during the drilling.

Peru

  • Commitments for surface and groundwater usage, as well as community water supply, were achieved within the respective conditions.
  • Effluent releases made in early 2015 from the main sediment pond and non-continuous releases throughout the year from road sediment ponds were within regulatory limits.