One of the most impactful ways we can address local community concerns and needs is by providing economic opportunities. However, there are several factors that must be considered before hiring suppliers, and it often takes time and resources to establish successful programs that will have a lasting impact.
One such program at Hudbay involves hiring local businesses to transport copper concentrate at our Constancia operation in Peru. In 2020, we conducted an assessment of the services and capacity among local businesses and the needs of the mine over the following five years. With the significant increase in concentrate production at the start of mining at Pampacancha, one identified opportunity involved the development of a program to hire local businesses to support the need for more transporters.
Before we selected additional suppliers for the task, we worked to ensure the local providers under consideration were qualified, and we offered training and resources to improve their safety standards, management systems and labour practices. To date, we have hired two new community providers from Chilloroya and Uchucarcco and have assigned 30% of our concentrate transport contracts directly to them. We hope to grow that percentage over time.
What was notable about the program is that it was not just a community relations project: it was a company project. Leadership championed the program and made sure everyone understood it was a priority, and several different areas within the Company – such as contracts, transport logistics and community relations – supported the development and implementation of the program.
By promoting this opportunity for the local communities and investing time and resources into setting the businesses up for success, we were able to strengthen relationships, generate a new economic activity in the local communities, provide a critical service for the mine and demonstrate how we create shared value with the communities near our operations.