Along with providing the minerals and metals that are essential to everyday life, we work to build meaningful relationships with communities and other stakeholders and to maximize our positive impact on local development.

Economic Contributions

We contribute to the regions and communities where we operate through the jobs we provide, the goods and services we procure from local businesses, and the taxes and royalties we pay to governments. In some communities, we make contributions related to land use and other co-operation agreements, and we invest in training, infrastructure and the development of sustainable economies and livelihoods.

Our Code of Business Conduct and Ethics and Statement on Anti-corruption require that all payments to governments comply with the laws of the jurisdictions in which we operate, including the Corruption of Foreign Public Officials Act in Canada and the Foreign Corrupt Practices Act in the US. We support the Extractive Industries Transparency Initiative (EITI), a global standard that enhances revenue transparency and accountability in the extractive sector. As a member of the Peruvian Mining Society, we support the EITI process in Peru, where the government has implemented significant aspects of the EITI requirements and is fulfilling the broader objectives.

In 2015, the Canadian government enacted the Extractive Sector Transparency Measures Act (ESTMA), which aims to increase revenue transparency and deter corruption in the resource exploration and extractive sector. In accordance with the Act, in May 2017 we filed our first ESTMA report, which details our government payments for the 2016 fiscal year.

Community Relations

By proactively understanding and responding to community members’ views, we strive to build relationships based on trust so that together we can grow and thrive.

We invest in programs, infrastructure and socio-economic development initiatives that build resiliency and advance sustainable livelihoods. This helps communities avoid dependency on the mine during operations and after closure.

Our Stakeholder Engagement Standard details the processes and requirements for strengthening relationships throughout the life of the mine. Each exploration site, development project and operation must identify relevant stakeholders, conduct an analysis, and create a stakeholder engagement plan that establishes mutually acceptable processes with key stakeholders. Through our community response mechanisms, which are accessible to all local stakeholders, we record complaints and grievances, investigate such matters, and endeavour to provide timely resolutions and remedies, as appropriate.

Our integrated software system supports recording and monitoring engagement activities, stakeholder commitments, community investments and action plans.

Indigenous Engagement

We work to respect the cultures and heritage of all communities near our locations of operation, and to ensure we recognize the special rights and circumstances of indigenous peoples.

We engage as appropriate on cultural resource mitigation measures, such as archaeological monitoring plans and cultural resource preservation plans, to identify and protect any cultural artifacts found. We conduct cultural heritage and awareness training for employees, contractors and community members.

As a member of the Mining Association of Canada (MAC), we apply the Towards Sustainable Mining (TSM) Aboriginal and Community Outreach assessment protocol, which we use to assess and measure our performance. The protocol seeks to ensure we engage communities of interest, including Aboriginal groups, in meaningful dialogue and decision-making.

Local Hiring and Procurement

Local employment and sourcing are often identified as a high priority for stakeholders, and they benefit the Company as well. Jobs and opportunities for local businesses generate significant economic benefits and create stronger relationships with the communities near our operations.

Our Local Procurement and Employment (LP&E) Standard requires each site to identify opportunities for local hiring and sourcing of goods and services. LP&E provisions are included in community agreements that are developed in collaboration with local representatives. Ongoing engagement ensures these opportunities align with stakeholder expectations.

Building the local talent pool also involves skills development programs conducted by Hudbay and through partnerships with universities, technical institutes and other organizations. We support programs that help diversify the local economy via training and capacity development for other livelihoods that are suitable for the community.

Community Development

Our goal is to serve as a catalyst for sustainable social and economic development in the communities near our operations.

We support programs and invest in infrastructure and development initiatives that build capacity and ensure sustainable livelihoods, improve the quality of the natural environment, and contribute to social cohesion and community spirit.

Understanding the social and economic priorities of each community begins as soon as we enter a region. As well as local employment and business opportunities with the mine, we support and collaborate with the communities on community development initiatives. In some jurisdictions, we have formal community agreements that detail our commitments. For example, in Peru the land use agreements with the Uchucarco and Chilloroya communities state our commitment to invest in health, education and social development. Multi-sectorial committees, which include Hudbay and local representatives, approve and oversee the carrying out of the projects specified in the agreements. Most of these initiatives include engagement with higher levels of government and other partners to make them more sustainable.

Our Community Giving and Investment Standard outlines the required process for voluntary support, contributions and investments in local communities. It emphasizes community involvement, mutual benefit, partnerships, sustainability and capacity development.

Resettlement and Land Use

Whenever possible, we seek to avoid resettlement. Due to the nature of locations where ore bodies are found, when resettlement is unavoidable we follow a process that adheres to international standards, including IFC Performance Standard 5. This ensures that affected people are engaged, adverse impacts are minimized, and the livelihoods and living conditions of those displaced are improved or restored.

When resettlement of 36 families was required at our Constancia mine in Peru, we acquired resettlement land that supported their ranching livelihood, built reservoirs and other critical public infrastructure and offered improved housing. Final agreements were negotiated directly with each household to ensure we followed a fair and transparent process.