Feature Story

Connected to Community

Flin Flon, Manitoba, and Hudbay Minerals grew up together. The rich mineral strike that prospector Tom Creighton made near the 55th parallel in northern Manitoba eventually led to the creation of the town and the Company. Our roots in the area, which now encompasses Flin Flon along with Creighton and Denare Beach in Saskatchewan, run deep, and so does our commitment.

Several years ago, it became apparent that the 777 mine in Flin Flon was coming to the end of its productive life, which would also impact the Flin Flon mill and zinc plant. The official closure of the 777 mine, along with most of the associated operations, including the zinc plant, power facility and oxygen plant, is set for spring 2022. However, Hudbay has long been working with the communities that will be impacted to help them successfully manage this transition.

As a company, we maintain open communications with our employees and the community about our evolving plans. This includes holding meetings between Hudbay executives and community leaders to provide business updates and hear their concerns. We are also working closely with the six unions that represent employees in the Manitoba Business Unit (see Managing through Changes and Uncertainties) and have established a memorandum of understanding that outlines how to manage the transition of employees from Flin Flon to Snow Lake.

For several years, Hudbay has sponsored a third-party advisor to work with local communities on economic development and diversification. Additionally, Hudbay has also provided financial support for an economic development officer for the area. In 2021, we made our fourth annual payment of $25,000 to the Flin Flon, Creighton and Denare Beach regional economic development commission. These efforts aim to help the communities assess their strengths and areas for improvement and then help them identify and pursue opportunities for development and expansion, such as tourism or industry beyond mining.

While several mine-related operations are closing, Hudbay will continue to use Flin Flon as a base for transloading our concentrate from trucks to rail cars. Additionally, we have state-of-the-art equipment on-site at our fabrication shop in Flin Flon, so it will remain open to support operations at Snow Lake.

The Flin Flon mill will be placed on care and maintenance when the 777 mine is closed. The first step will require diligent preparation, which includes draining all fuel and fluid lines at the facility and lifting the ball mills onto jacks to take pressure off the bearings. Subsequently, the facility will be monitored regularly with a program in place to ensure facilities and equipment remain in good repair. Being placed on “care and maintenance” reflects the belief that there is potential for operations to recommence at some future date if a new source is found, though Hudbay may not be the operator. For example, the refurbished New Britannia mill, a cornerstone of our Snow Lake operations, was on care and maintenance for 10 years before Hudbay purchased it in 2015.

Tailings management is an ongoing responsibility for Hudbay. Recently, we have begun to explore the unrealized potential of 90 years’ worth of mine tailings. Our Technical Services team is currently looking into the feasibility of reprocessing tailings from the Flin Flon Tailings Impoundment System, using modern milling technology (see Technical Services: Connected to Innovation). Should it prove feasible, reprocessing tailings could provide significant economic and environmental benefits for the region.

For many years, Hudbay has paid a grant-in-lieu in place of property taxes in Flin Flon and will continue to do so. Currently, we are working with the community to adjust the grant-in-lieu to reflect the change in our workforce and remain fair for all concerned. Additionally, we are also determining the best way to provide ongoing support for various local activities, such as junior hockey.

While we are preparing for the closure of 777, we are not leaving the community or the region. Hudbay and Flin Flon are working together to manage this change and build a foundation for a strong future.