2020 Sustainability Performance

Hudbay believes that continuously improving how we manage the social, environmental and economic risks, impacts and opportunities associated with our activities is critical for our long-term success. Our focus on sustainability helps us meet stakeholder expectations, benefit from positive developments and navigate challenging circumstances. To help ensure that our sustainability efforts remain relevant, we align our activities with the UN’s Sustainable Development Goals.

Sustainability Highlights

Invested $2 million toward developing a new subdivision in English Bay, Snow Lake, helping the town create permanent housing solutions.

Helped launch the “Tikary: Bordando el futuro” (“Embroidering the future”) project, aimed at supporting local women and reactivating the economies of communities near Constancia.

In Nevada, established a tribe-guided scholarship program with the Yerington Paiute to help develop knowledge and skills needed by the community.

Targets and Achievements

Target Achievement Details
Health and Safety
Match or improve on our current three-year average lost time injury severity of 7.0 Achieved Our 2020 lost time injury severity average was 3.4 shifts lost per 200,000 hours worked.
Match or improve on our two-year total recordable injury frequency average of 1.3 (based on ICMM classification criteria, which we started tracking in 2018 and therefore only have two years of data) Achieved Our 2020 total recordable injury frequency average was 1.3 recordable injuries per 200,000 hours worked.
Community
Reach agreements with individual community members that currently use portions of the acquired Pampacancha lands Partially achieved Over the course of the year, we concluded the majority of the individual land user agreements required to commence development.
Continue to provide local communities with planning information and support for economic transition related to the closure of the 777 mine and metallurgical complex in 2022 Achieved More information under Preparing for Closure Impacts and Transition.
Environment
Complete the construction of the control berms and initiate phase II Flin Flon dam legacy upgrades Achieved More information under Strengthening Tailings Facilities in Manitoba.
Initiate pilot plant testing for selection of best technology and progress detailed engineering of the Constancia tailings water treatment facility Achieved More information under Testing Alternative Environmental Technologies and Methods.
Governance
Implement revised Long-Term Incentive Plan for executive and employee compensation Achieved Our updated Long-Term Incentive Plan is explained in our Management Information Circular.
COVID-19: Effective implementation of corporate and business unit crisis response plans to maintain safe operations and business continuity Achieved More information under Responding to COVID-19: Resilience in Action.
Financial Excellence/Growth

Subject to maintaining sufficient financial liquidity, and ability to safely carry out exploration and project activities:

  • Progress the refurbishment of the New Britannia mill and pre-development of Lalor copper-gold zones, and drill Lalor gold to add to reserves and extend mine life
  • Continue evaluating Constancia regional exploration targets, and work to identify and unlock future value
Achieved More information under Snow Lake: A Focus on Gold and Constancia: Expansion to Pampacancha and Constancia North.
Advance preliminary economic studies at Mason Achieved Consolidated land near Mason and advanced preliminary economic studies.
In conjunction with relevant US federal agencies, pursue appeal of Rosemont decision through the US Ninth Circuit Court of Appeals Achieved The US government confirmed its participation in the appeal; briefs were completed in 2020 and the decision is pending.
Renegotiate debt covenants under revolving credit facility Achieved Discussed in the Business Activities section of this report.

2021 Targets

Health and Safety

  • Match or improve on our current three-year average lost time injury severity of 6.7
  • Match or improve on our three-year total recordable injury frequency average of 1.3 (based on ICMM classification criteria)

Community

  • Continue to provide local communities with planning information and support for economic transition related to the closure of the 777 mine and metallurgical complex in Flin Flon, Manitoba, in 2022

Environment

  • Hudbay operating locations achieve level “A” or higher for all indicators in the initial public reporting of the TSM Water Stewardship Protocol
  • Define a pathway (e.g., sources of emissions, nature of investment steps and key technology areas, conceptual requirements for reductions to be economically feasible) for each Hudbay operation to achieve a 2030 Scope 1 and Scope 2 greenhouse gas emissions (GHG) target that is consistent with a path to achieving the global objective of limiting global warming to well below 2°C (above pre-industrial levels). The pathway will guide our investment evaluations and inform our suppliers and partners of our needs so that we contribute to necessary reductions. As a producer of commodity materials, we will focus on GHG intensity, as our contribution is to provide required materials more efficiently.

Governance

  • Review and formally allocate strategic risk and risk oversight to the appropriate Board committee, including recognizing diversity and inclusion in Board risk oversight

Financial Excellence/Growth

  • Meet targets on first ore milled and completion of copper flotation circuit at New Britannia mill
  • Meet budgeted production for the year
15%
Indigenous employment in Manitoba
16%
overall female employment
SafeGuard
Constancia first mine in Peru to obtain SafeGuard certification, recognizing full compliance with all COVID-19 safety protocols

Our People

Sustainably operating our business requires that we recruit, engage and retain experienced and dedicated personnel who are committed to our values and business objectives. To ensure our employees and our organization are positioned for success today and in the future, we are investing in our people by developing their skills, supporting their career goals, embracing their diversity, and providing a healthy and safe workplace.

$222.8million
paid in employee wages and benefits
$5.3million
in community investments and charitable donations

Social Impact

Hudbay’s goal is to have a positive impact and help local communities near our operations thrive throughout the life of a mine. We invest in socio-economic development opportunities that help local communities contribute to and benefit from our presence; partner and collaborate to stimulate opportunities that support livelihoods and infrastructure needs; and work to build lasting relationships with those who live near our operations or are impacted by our activities.

5.2%
decrease in energy consumption
Renewable
More than half of our indirect energy consumption is from renewable sources
Award
Hudbay’s Mason project received a 2020 Nevada Excellence in Mine Reclamation Award

Environment

We aim to develop, operate and close mines in a manner that demonstrates our commitment to environmental stewardship. This requires applying best practices, complying with all applicable environmental laws and regulations, and investing in new technologies and innovative approaches.