Hudbay total water usage

Additionally, approximately 55% of the company’s total energy consumption came from renewable energy.

Hudbay Minerals Inc. today announced the publication of its annual integrated and sustainability report providing transparency and progress on key business achievements and sustainability initiatives in 2023 along with objectives for the next year and long term.

“For nearly a century, Hudbay has been extracting critical metals the world needs and creating value for our stakeholders – employees, community members, customers, consumers and investors – that extends far beyond return on investment,” said Peter Kukielski, president and CEO of Hudbay.

He highlighted that “in 2023, we made significant progress against organization-wide priorities, including purpose, culture and sustainability. “We also enhanced our operating platform with the recent completion of brownfield investments in Peru and Manitoba along with the acquisition of Copper Mountain, which contributed to significant revenue generation, free cash flow growth and balance sheet deleveraging.”

“We remain committed to building close relationships with our local communities and always operating safely and efficiently. By producing essential metals and operating sustainably, we strive to align our actions with a broader vision of responsible and ethical business practices,” he stressed.

Hudbay’s purpose statement serves as a cornerstone of the company’s commitment to sustainability. Thus, the executive stated that “we care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities.”

Our planet

• In 2023, Hudbay made significant progress on its roadmap toward the overall goal of a 50% reduction in Scope 1 and 2 greenhouse gas (“GHG”) emissions by 2030. The roadmap helps identify initiatives across the organization, categorize their potential impacts, and plan their annual progression.
• In 2023, the company’s direct energy consumption decreased 11% and indirect energy consumption increased 21% from the prior year, primarily as a result of the addition of the Copper Mountain mine in 2023. Total GHG intensity per ton of copper equivalent production decreased by 8% in comparison. until 2022.
• Approximately 55% of the company’s total energy consumption came from renewable energy, and almost 100% of the electricity in its Manitoba and British Columbia operations comes from renewable hydropower.
• In 2023, the company reduced the total amount of water withdrawn by 6% and water discharged by approximately 37% compared to 2022. Approximately 77% of total water use was recycled or reused.
• Hudbay is committed to implementing the Canadian Mining Association’s Towards Sustainable Mining (TSM) program. All business units achieved a TSM rating of Level A or higher on all protocol indicators, and Manitoba and Peru received Level AA ratings for the facility climate change management indicator. Hudbay also achieved a Level A rating for the corporate focus indicator related to setting meaningful targets for emissions reductions and focusing on climate adaptation.
• Constancia signed a 10-year power purchase agreement with ENGIE Energía Perú, providing access to a 100% renewable energy supply for Constancia from 2026.
• Copper Mountain is among the lowest quartile of GHG emissions among copper mines and has the only electric trolley assist system in North America, with seven trolley-capable haul trucks in operation that use hydroelectric power and reduce diesel consumption. In October 2023, Hudbay put the world’s largest electric hydraulic excavator into service, joining the other two electric excavators in British Columbia’s operational electric fleet.
• In Manitoba, Hudbay conducted metallurgical research with technology partners to explore the potential of reprocessing Flin Flon tailings to produce non-acid generating residual tailings. This has the potential to reduce on-site waste that contributes to ongoing water treatment requirements, create a new mineral resource and extend the life of Flin Flon’s operations.
• In September 2023, Hudbay released the pre-feasibility study (PFS) for Phase I of its Copper World development project in Arizona. The PFS includes the addition of a concentrate leaching facility in the fifth year of operations to produce copper cathodes, which is estimated to reduce energy consumption by more than 10% and decrease GHG and sulfur dioxide emissions by eliminating overseas shipping, associated smelting and refining activities. with copper concentrate.

Our people

• In Peru, Constancia received the “Healthy Company Management” certificate from SGS Peru, one of the world’s leading testing, inspection and certification companies, in recognition of its practices, processes and management systems related to health and well-being.
• In Manitoba, the business unit leader spearheaded the launch of the “Everyday Safe Home Initiative.” This program revolves around a roadmap comprising three key workstreams (security governance, supervisory leadership, and high potential prevention and mitigation) to prevent incidents by thoroughly assessing risks and implementing controls to reduce its frequency.
• In British Columbia, following Hudbay’s acquisition of Copper Mountain, the human resources team adapted to changing business needs and focused on hiring for critical positions, such as mill operators, and building a culture positive organizational, which will continue until 2024.
• Launched the “ONETeam” leadership training program in 2023 to focus on coaching and conflict resolution skills in a six-day leadership development program for supervisors and senior managers. In Manitoba, supervisors completed the program in February 2024, while the British Columbia business unit plans to implement it in fall 2024.
• In Arizona, Hudbay is establishing a strong workplace safety culture with the hiring of a dedicated health and safety manager, who initiated safety programs that include a critical risk management program, a fully fledged emergency response team volunteer and a monthly employee-led safety meeting where a team member selects and presents a relevant and timely safety topic.
• Nine of the ten directors on our Board are independent, non-executive directors. Hudbay President and CEO Peter Kukielski is the sole CEO.
• Among directors, 40% are women and another 20% belong to other designated groups. The Board remains committed to the company’s goal of having at least 30% female directors on the Board as part of its overall commitment to diversity and inclusion.

Our communities

• Hudbay went through a period of nationwide civil unrest in early 2023 and was able to keep the Constancia plant operating thanks largely to the efforts of community members near Constancia.
• In 2023, Hudbay signed new sustainable development agreements with six communities in the area near Constancia and engaged in nearly 7,700 interactions involving more than 3,000 local stakeholders.
• Hudbay’s Manitoba business unit expanded its Indigenous Circle for All (ICE) program in 2023, offering employees a comprehensive exploration of the cultural aspects of neighboring First Nations communities.
• In British Columbia, Hudbay held regular meetings with representatives from the cities of Princeton and Keremeos, RDOS, service providers, ranchers and trappers. The company also began the process of modifying existing engagement agreements with local First Nations to provide a more meaningful and aligned relationship.
• In Arizona, Hudbay continued to meet with local Native American tribal leaders and council members at the Copper World site to discuss the project and create opportunities for them to express concerns and provide feedback. The company is responding to public comments received on the draft Aquifer Protection Permit for Copper World, which was issued by the Arizona Department of Environmental Quality in January 2024.

Hudbay is pleased with the steps taken in 2023 towards its long-term sustainability goals.

Outlook 2024

In 2024, the company aims to continue its path to always operate safely and sustainably, aligned with Hudbay’s purpose of ensuring that the company’s activities have a positive impact on its people, its communities and its planet.

The company is committed to continuing its sustainability efforts by working to reduce its carbon footprint by pursuing improvements across the business to reduce GHG emissions by 50% by 2030, continuing water and biodiversity stewardship with progressive rehabilitation efforts, promote stakeholder engagement through respectful and open processes, dialogue with their local communities, continuing to improve their diversity and offering strong governance and transparent disclosure.

Details of the company’s annual and sustainability results can be found on Hudbay’s website at https://hudbayminerals.com/disclosure-centre/default.aspx and the full Integrated Annual Report can be downloaded here.