Strengthening Our Water Management Approach

Our Peru Business Unit met its internal water performance targets for consumption and quality, as well as its public target to reduce fresh water consumption intensity by 5% at Constancia’s accommodation camp. We have improved our understanding of water use at the camp, and we will look to implement other improvements, such as low-flow faucets, to continue reducing consumption on both an intensity and a per-person basis.

Compared to the previous year, overall total water consumption increased by 14%, and water consumption intensity increased by 25%. The Constancia operation’s surface and groundwater consumption was 47% less than the amount authorized by the licences that govern the site’s water use.

We conducted extensive water quality monitoring of the nearby streams and rivers to assess any impacts our activities may have on the water sources. In 2017, results showed elevated levels of nitrogen at the station monitoring discharges from the wastewater treatment plant. The levels were within national limits but exceeded IFC standards, so improvements were implemented at the plant to ensure conformity to water quality standards and requirements.

Energy and Emissions

We met our target to reduce our greenhouse gas emissions intensity at the accommodation camp by 5%. Programs, such as installing energy meters at camps and awareness campaigns, helped to drive the year-over-year decline.

Our overall energy usage in Peru increased by 8%, and our energy intensity increased by 20% compared to the previous year. We initiated a program to convert the lighting systems at the processing plant to LEDs, which reduced the plant’s GHG emissions by 25%.

We completed implementation of the TSM Energy and GHG Emission Management protocol at Constancia at a level of A or higher. Validation of the protocol’s implementation confirmed all indicators within this protocol achieved the level A target.

Planning for No Net Loss of Biodiversity

The biodiversity management plan for Constancia aims for no net loss of biodiversity as a result of mining activities. In 2017, we achieved all the objectives in our 2017 biodiversity action plan. Highlights for the year include:

• We installed eight trap cameras in the mine’s area of influence. The cameras are a valuable tool for studying species and collecting data on biodiversity trends.
• More than 670 Hudbay personnel received biodiversity management training.
• Through our revegetation and forestation programs, we rehabilitated more than 16 hectares, planted nearly 17,000 native trees and produced 17,800 seedlings at our nursery.
• We engaged with stakeholders and promoted responsible biodiversity management practices through animal health training with members of the Chilloroya community, presentations at Peruvian universities, and contributions to scientific papers and publications.
• At Constancia’s tailings facility and bog deposit area, we tested bird repellent methods to keep birds a safe distance from the ponds.

During the year, we implemented the three indicators in the TSM Biodiversity Conservation Management Protocol, reaching an AAA level (the highest) for all three indicators within the protocol. Verification is expected in early 2018.