2017 Annual and CSR Report
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Social Impact Manitoba

In Manitoba, the Reed mine is scheduled for closure in 2018, the 777 mine is approaching the end of its mine life, and the Lalor mine near Snow Lake is expanding. Planning for both growth and closure requires extensive engagement with the communities and other stakeholders affected by our activities.

Engaging on Closure

In April, we provided greater clarity about the expected closure date of the 777 mine, confirming that operations would continue through late 2020. To support the Flin Flon/Creighton region of northern Manitoba and Saskatchewan, we discussed closure plan options with the communities and are supporting their efforts to identify economic diversification opportunities.

Working Together on Growth

With growth in our Manitoba region shifting to the Lalor mine and exploration activities near Snow Lake, we continued to consult actively with community stakeholders. During the year, we began trucking ore from Snow Lake to Flin Flon. Discussion topics included road maintenance and other potential impacts, such as environmental spills and accidents, from the increased road traffic. We met with the mayor and town council on numerous occasions to review other key topics, including the annual grant in lieu (GIL) of taxes, and financing opportunities for critical infrastructure upgrades.

The added mining activity has brought a welcome economic boost to the Snow Lake area. At the same time, community members have expressed concerns over how the growing operation will impact town amenities and infrastructure. One issue discussed with community members is the plan for the camp, given the increased production at Lalor and their concerns about parts of the camp transitioning from a temporary to a more permanent status.

A notable community project during 2017 was restructuring the rental requirements for an apartment complex owned by Hudbay, to make it more affordable for seniors and enable it to serve as a retirement complex well into the future.

Aboriginal Relations

Our operations in Manitoba are located near the Opaskwayak Cree Nation, Mosakahiken Cree Nation and Mathias Colomb Cree Nation Aboriginal communities in Manitoba, and the Pelican Narrows, Deschambault Lake and Sandy Lake communities from the Peter Ballantyne Cree Nation in Saskatchewan.

Hudbay Manitoba’s Aboriginal Liaison Officer (ALO) works to build mutual understanding and positive relationships between Hudbay and the First Nations communities. The ALO helps bridge cultural gaps through meetings and job fairs, support for indigenous community activities, mine tours and events; cultural awareness training for employees; and conflict resolution. All Manitoba operations have stakeholder engagement plans, and the ALO ensures that those plans are carried out. During the year, we expanded our approach through the development of a new Aboriginal engagement strategy that applies to all exploration projects in the region.

Along with providing employment opportunities, we work to support Aboriginal businesses. We hosted a series of economic development workshops with First Nations communities that explained our procurement procedures and available opportunities, and advised them on how to participate in the bidding process. In 2017, payments to suppliers in northern Manitoba and northwest Saskatchewan totalled over $42 million, of which approximately $840,000 was awarded to Aboriginal businesses.

We held and participated in a number of events throughout the year to continue building cultural awareness and mutual understanding. On National Indigenous Peoples Day, employee volunteers provided support for the Flin Flon Aboriginal Friendship Centre celebration. Some employees expanded their knowledge about seeking mino-pimatisiwin – an Aboriginal approach to wellness – by participating in a sweatlodge ceremony. The participation in these and other cultural events addresses Call to Action No. 92 under the Truth and Reconciliation Commission’s call for businesses to play a role in reconciliation.

For the fourth year in a row, we completed the questionnaire for the Canadian Council of Aboriginal Business’s (CCAB) Progressive Aboriginal Relations (PAR) program and maintained our bronze certification level. The PAR program verifies and benchmarks corporate performance in Aboriginal relations in Canada in four key areas: employment, business development, community investment and community engagement.

Hudbay is an ongoing supporter of Indspire, an indigenous-led charitable organization that invests in education for indigenous people. Our annual contribution to Indspire has provided scholarships to 14 indigenous students from Ontario and Manitoba. At the 2017 Indspire Awards, which celebrate the achievements of indigenous Canadians, Jerry Asp was recognized for his success in business and commerce. He is a former Chief in the Tahltan Nation in British Columbia and a co-founder of Global Indigenous Trust, an organization that empowers and transforms Aboriginal communities. Hudbay has been a long-time supporter of the Trust.

2017 Performance

We invested $287,500 to support a wide range of community programs. Major contributions (above $10,000) during the year included:

  • $25,000 toward university and college scholarships for Aboriginal youth in northern Manitoba
  • $105,000 toward the Flin Flon and District Assessment and Referral Service, which provides employment counselling services
  • $23,000 to the Flin Flon Junior Bombers, the town’s junior ice hockey team

There were a total of 107 complaints registered in 2017, of which 101 were union labour grievances.  Labour grievances related to collective agreements are managed through separate processes from community grievances. Starting with our 2017 report, we are including these grievances in our reporting.