We recognize our duty to respect the rights of the people who work on our behalf and those who live in the communities near our operations. Our Code of Business Conduct and Ethics and Human Rights Policy state our support for the principles of the Universal Declaration of Human Rights, and they affirm our respect for human rights through our business conduct and management practices.

We respect the dignity of all people, along with their cultural traditions and values. Our fair labour practices include zero tolerance for forced, compulsory and child labour, and we work to prevent any violations within our sphere of influence.

To more closely align our human rights due diligence with the UN Guiding Principles on Business and Human Rights, we are developing guidance on integrating risk assessments and processes for managing human rights, social risk and security risks. At the operational level, these policies and guidance aim to link human rights risk management to our business success.

Any concerns about human rights issues within our business can be raised by contacting the Hudbay Board of Directors directly via our corporate website, through the third-party ethics hotline or via site grievance mechanisms.

In 2017, one human rights issue was raised or reported through our Board, hotline or site grievance mechanisms. At our Constancia operation in Peru, the treasurer of a rural community close to the mine reported a concern related to the treatment of the community’s workforce by a member of Hudbay’s Human Resources department. The Company conducted a fair, independent and impartial process to address the complaint and worked with all involved parties to resolve the matter.

Security Practices

Hudbay is committed to respecting the human rights of our neighbouring communities while providing a secure environment for our employees and contractors.

The operations, projects and exploration sites where we employ security personnel apply the Voluntary Principles on Security and Human Rights (the VPs), which provide a guide for maintaining safety and security within an operating framework that ensures respect for human rights and fundamental freedoms.

Our human rights risk assessments, management of private security and relationships with public security are guided by the VPs as well as the UN Guidelines on Business and Human Rights. As a member of the Mining Association of Canada (MAC), our implementation of the VPs will be reported on annually in MAC’s TSM Progress Report.

At Constancia, we conduct ongoing, in-depth training for our security supervisors and contracted security staff, who are unarmed (except for government-mandated armed guards at the explosive storage area). Security personnel receive training based on the UN Code of Conduct for Law Enforcement Officials and the UN Basic Principles on the Use of Force and Firearms by Law Enforcement Officials. The VPs are also promoted with site security personnel and with the local national police and community security teams.

Approximately three times a year, we conduct audits of our security policies and practices in Peru against the VPs. The audit results are reported to site and executive leadership, including the Chief Executive Officer.

Security personnel work closely with Constancia’s Community Relations team to facilitate open communications with the local people and mitigate potential issues. Their efforts helped to safely and peacefully resolve one minor confrontation involving our negotiations with Chumbivilcas.

Because periodic social unrest has affected certain mining projects in southern Peru, Hudbay participates in multi-stakeholder initiatives. We engage with national government officials, local authorities and community leaders to address local concerns and issues before they become larger conflicts. Throughout the year, our Constancia security superintendent meets with security managers from neighbouring mines. The security group, known as SEMSUR, discusses best practices, experiences and emerging issues. We have used these meetings as opportunities to explain our commitment to, and our experience with implementing, the VPs.

At our Rosemont project in Arizona, we have a security superintendent on site and procedures in place in preparation for entering the construction and operations phases. Through the Rosemont Safety and Security Work Group, we engage with local law enforcement and emergency response agencies on project developments, safety and security incidents, and how to coordinate efforts should an emergency arise. During 2017, the Rosemont team developed a crisis management manual and held workshops to define responsibilities and test the procedures.

Separately, we conducted a security review of our Manitoba facilities and corporate office.

Guatemala Civil Lawsuits

Hudbay is named in three civil lawsuits relating to alleged events prior to 2010 in Guatemala, where the Company owned a controlling interest in Compañía Guatemalteca de Níquel (CGN). Information about the litigation is posted on our website.