Hudbay has done well in Peru. Constancia was our first major copper mine outside of North America, and it has become integral to our growth and success.
We acquired the Constancia project in 2011, and, after executing community agreements and completing construction, we commenced production from the mine at the end of 2014. Subsequently, we have successfully reached surface rights agreements with the communities of Chilloroya and Uchucarcco to allow us to mine the Pampacancha deposit and commence exploration activities at the Maria Reyna and Caballito properties. These agreements, which give us access to deposits and potential deposits near Constancia, are crucial in extending the life of the mine. They also ensure that our operations deliver lasting benefits to local communities. Our goal throughout the country is to be recognized as a productive, low-cost mine operator, a supportive employer, a dependable partner, a trusted corporate citizen and a good neighbour.
In a region with a complex political, social and economic landscape, Hudbay has been able to operate reliably with few interruptions and setbacks. From the beginning, having cordial and mutually beneficial community relations has been a top priority for Hudbay.
At Constancia, our Community Relations (CR) team is organized around three areas of focus – local procurement and employment, community relations: exploration, and community relations: mine – and has literally hundreds of interactions, including face-to-face meetings and community events, with local people to address issues of concern and help ensure that the community benefits from our presence. The CR team reports to the Director, Government Affairs and Social Responsibility and works closely with the Social Projects team and the Government Relations team.
Keeping lines of communication open with neighbouring communities and districts, including those along our transportation route, is a critical function of the CR team. Throughout 2022, we participated in over 1,178 community meetings, negotiations and roundtables. Additionally, we engage with stakeholders, from community members to government officials, through various approaches and strategies designed to meet their needs.
Our mining activities create direct and indirect benefits for the communities near Constancia. Hudbay employs many local people as employees and contractors, and we are a valuable customer for locally sourced goods and services. We also make significant contributions to local, regional and national tax bases. In addition, we work with communities and other local groups – providing funds, resources, expertise and opportunity – to help build a base of skills, knowledge and infrastructure that will provide value that lasts beyond the life of our operations.
In 2021, reflecting our commitment to fostering diversity, equity and inclusion within our workforce, we launched Hatun Warmi (“Great Woman”), a social impact program that trains women from communities within our area of influence on how to operate heavy equipment, including trucks. The program aims to empower rural women, reduce the region’s employment gender gap and expand the range of mining job opportunities available to program participants. To date, 11 women have graduated and joined our permanent workforce. Twelve new participants started the program in September 2022.
Hatun Warmi is one of several Hudbay-sponsored programs aimed at helping women build marketable skills, develop confidence and pursue entrepreneurship. In 2021, Hudbay launched the Success scholarship program, which grants comprehensive university scholarships to low- income youth from rural communities within our districts of influence. A key feature of the program is that participants focus on studies that will help them find careers in the mining industry.
Hudbay also supports initiatives to grow sustainable businesses in local communities. A notable success has been our Community Contractor program, through which we provide resources – including funding, equipment and training – that help local businesses meet our standards for safety, sustainability and service. From this foundation, local qualified businesses can secure contracts for a range of opportunities. For example, after helping two neighbouring communities assemble trucking fleets and train drivers, we engaged them to haul ore and concentrate from our sites.
Ensuring that the people and communities near our operations enjoy long-term benefits as a result of our presence helps to align our interests. Our neighbours have become a powerful source of support for our activities, which strengthens our commitment to continually work to earn that trust and support.