responsibility · of properties we already control, such as our lalor project in manitoba, as well...

RESPONSIBILITYHudbay | 2011 Corporate Social Responsibility Overview

2 < HUDBAY 2011 CORPORATE SOCIAL RESPONSIBILITY OVERVIEW

YUKON

COLOMBIA

MICHIGAN

MANITOBA

HEAD OFFICE

PERU

CHILE

Economic ContributionsIn 2011, Hudbay contributed:

• 1,430 permanent jobs, 1,343 contractor full-time equivalent jobs and 31 summer student jobs

• $199.4millioninwagesandbenefits

• $7.6milliontomunicipalitiesthroughtaxesandgrants(inlieuoftaxes)

• $90.2millioninincome,mining,capitalandusetaxestofederalandprovincialgovernments

• $1.7millionincommunityinvestmentsandcontributionstocharities

ABOUT HUDBAY

> Hudbay is a diversified mining company that produces copper concentrate (containing copper, gold and silver) and zinc metal. We are headquartered in Toronto, Ontario, Canada, and listed on the Toronto Stock Exchange and the New York Stock Exchange under the symbol HBM.

OPERATIONSFlin Flon, Manitoba

• 777andTroutLakemines

• FlinFlonconcentrator

• Zincplant

Snow Lake, Manitoba

• ChiselNorthmine

• SnowLakeconcentrator

DEVELOPMENTLalor Project, Manitoba

Constancia Project, Peru

Reed Copper Project, Manitoba

EXPLORATIONBack Forty Joint Venture

Project, Michigan

Tom and Jason, Yukon

Cartagena, Colombia

(office supporting early-

stage exploration)

Santiago, Chile (office

supporting early-stage

exploration)

CARE AND MAINTENANCEBalmat, New York

• Zincmineandconcentrator

NOTES:Hudbay held an interest in the Fenix nickel project in Guatemala until it was sold in September 2011. The Company also owned the Zochem zinc oxide plant in Brampton, Ontario, until it was sold in October 2011. Both Fenix and Zochem are included in the statistics and indicators discussed in this report up to the point of sale.

HUDBAY 2011 CORPORATE SOCIAL RESPONSIBILITY OVERVIEW > 1

MESSAGE TO STAKEHOLDERS

> This is an exciting time for Hudbay as we apply the skills and knowledge gained from 85 years of successful mining in Manitoba to the development of new mines and to our entry into new parts of the world.

OurveryfirstminegaverisetothetownofFlinFlon,

andwearestilltheretoday,runningaworld-class

operationandpursuingnewopportunitiesinstep

withthecommunity.Similarly,ouroperationsin

SnowLakehaveflourishedandbeenamainstayof

thatcommunityformorethan50years.

Overthecourseofourhistory,Hudbayhasproven

to be a responsible business and a responsible

corporatecitizen–upholdingastrongsetofvalues

andethicalprinciples,providingstableandfulfilling

careersforourpeople,deliveringvaluetoour

customersandshareholders,andhelpingbuild

strongandsustainablecommunities.

SAFETY PERFORMANCE

In2011weimprovedontheCompany’sstellar

safetyrecordbyachievingourbest-everlosttime

accidentfrequency.Wealsoworkedtosupport

goodsafetypracticesatournewsites.TheLalor

projectwent707dayswithoutalosttimeaccident.

TRAINING AND EDUCATION

Webelievethathiringasmanylocalpeople

as possible is best for Hudbay and for our

communities.In2011,weworkedtoprepare

residentslivingnearourprojectsforemployment

attheseoperations.OurexperienceinFlinFlon

hasdemonstratedtheimportanceofaffiliations

witheducationalinstitutionsinstrengthening

communitycapacityandbuildingourpotential

talentpool.Wedonatedlandandarefinancially

supportingtherecentlycompletedNorthern

ManitobaMiningAcademy,whichaimstotrainthe

nextgenerationofareaminersforhigh-skilledjobs.

Inmuchthesameway,wearecollaboratingon

thecreationoftheInternationalCentreforMining

ProductionandRegionalDevelopmentinthe

provinceofChumbivilcasinPeru.

COMMUNITY ENGAGEMENT

Wevalueourlongstandingassociationswiththe

communitiesandFirstNationsnearourManitoba

operationsandlookforwardtoestablishingsimilar

relationshipswiththecommunitiesnearournew

projectlocations.

Webelievethatourcommitmenttopeaceful

dialogueenabledustoworkconstructivelywith

localcommunitiesinPeru,andpavedthewayfor

thesigningoflifeofminelanduseagreements

fortheConstanciaprojectwiththeUchuccarcoand

ChilloroyacommunitiesinMarch2012.

WORD OF THANKS

Ultimately,oursuccessinbusinessandin

corporatesocialresponsibilitycomesdowntoour

people.Hudbayhasincrediblytalentedpeople

whoregularlydemonstratetheirenthusiasmand

willingnesstodotherightthingandtoachieve

thebestpossibleresultsforourCompany,our

investorsandourcommunities.Iextendtothem

myheartfeltthanks.

Sincerely,

DAVID GAROFALO

President and Chief Executive Officer


360° RESPONSIBILITY

> At Hudbay, we are proud of the fact that the minerals we mine play a fundamental role in the everyday lives of billions of people around the world. We also understand the responsibilities that come with mining. From the start of exploration to mine closure, we hold ourselves accountable for creating sustainable economic, environmental and social performance.

Exp

EXPLORATION

Prior to exploration, we engage with local

communities and indigenous peoples and obtain

all necessary approvals and permits. Leading-edge

exploration technology and best practices are

designed to minimize our environmental impact.

DEVELOPMENT

A mine is built only if a mineral deposit is

economically feasible, and community and

appropriate environmental standards can be

met. We conduct environmental and social

impact assessments and financial feasibility

studies, consult with local stakeholders and

obtain all necessary permits. During construction,

preference is given to local citizens and businesses

for jobs and contracts.

Dev

OPERATIONS

We require our operating facilities to become

certified under the ISO 14001 environmental

standard and the OHSAS 18001 health and

safety standard within two years of start-up. In

the workplace and the community, we uphold

high standards of honest and ethical behaviour

and strive to build capacity to enable people to

improve their career and economic prospects.

Ops

Prd

PRODUCTS

All Hudbay products are accompanied by material

safety data sheets that provide pertinent

information on product composition, toxicology

relating to human health and the environment,

handling, storage and exposure issues.

Rem

REMEDIATION

At mine closure, we carry out an orderly, safe and

environmentally sound process of converting an

operating mine to its pre-mining condition. Over

the course of its history, Hudbay has successfully

reclaimed and remediated 19 mines.



Human Rights PolicyHudbay’sHumanRightsPolicy,approvedbyourBoardofDirectorsin2011,articulatesourcommitmentsto

humanrights.Keyaspectsincludecommitmentsto:

• Ethicalbusinesspractices

• Respectingtherightsoflabour,andtohealthandsafety

• Communityparticipation–includingcommunityconsultation,contributingtolong-termandsustainable

opportunitiesforcommunities,respectingcommunities’legalrights,andparticipatinginacommon

efforttopromoterespectforhumanrights

• Securitymeasuresthatrespecthumanrights–includingouradoptionoftheVoluntaryPrincipleson

SecurityandHumanRights(VoluntaryPrinciples),andtheUnitedNations(UN)CodeofConductforLaw

EnforcementOfficials

STRATEGY AND GOVERNANCE

> Responsibility begins with the way we conduct our business. Our approach is largely informed by the operating principles and practices developed and refined at our northern Manitoba sites over our 85-year history.

OUR APPROACH TO CSR

Hudbay’sstrategyisfocusedongrowingthe

Companythroughexplorationanddevelopment

ofpropertieswealreadycontrol,suchasour

LalorprojectinManitoba,aswellasthrough

theacquisitionofexplorationanddevelopment

properties,suchasourConstanciaprojectinPeru.

Wealsooptimizethevalueofourproducingassets

throughefficientandsafeoperations.

GoodCSRpracticesarecentraltoourability

toexecuteourbusinessstrategy.Wemust

demonstrateabroaderbenefitfromourpresence,

workinpartnershipwithcommunitiesand

governments,andminimizetheenvironmental

impactofouroperationsinordertoachieveour

financialgoals.

OurapproachtoCSRislargelyinformedbythe

operatingprinciplesandpracticesdevelopedand

refinedatournorthernManitobalocationsoverour

85-yearhistory.AcrosstheCompany,oursitesare

unitedintheircommitmentto:

• Upholdhighstandardsofhonestand ethicalbehaviour

• Protectthehealthandwelfareofemployeesand

contractors at our sites

• Beagreatplacetowork

• Beapositivepartnerinthecommunitieswhere

weoperate

• Minimizeenvironmentalharmandrehabilitateland

affectedbyoperations

GovernmentarcheologistscatalogueartifactsfoundonHudbay’sConstanciaproject.Beforeminingactivitiescanbegin,anarcheologicalteamisrequiredtosurveythepropertyandrecordanyhistoricalitems.


OUR PEOPLE AND OUR COMMUNITIES

> Our success relies strongly on the skills, experience and commitment of our people.

BOARD COMMUNICATIONS

Employees,shareholdersandotherinterestedstakeholdersareinvitedtocommunicatewithourBoardofDirectorsthroughourwebsiteatwww.hudbayminerals.com/eng/contact.CommunicationsareforwardedtotheBoardChairmanunlessaddressedtoaspecificdirector.

Tomakeaconfidential,good-faithreporttotheChairoftheHudbayAuditCommitteeaboutaperceivedviolationoftheCompany’sinternalandaccountingcontrols,auditingmattersorviolationsoftheCompany’sCodeofBusinessConductandEthics,pleasecall 1877457-7318orvisitwww.clearviewconnects.com.ReportsarehandledunderourwhistleblowerpolicyandtheChairoftheAuditCommitteeisresponsibleforensuringthattheyareappropriatelyinvestigated.Fiveincidentswerereportedin2011,allofwhichwereinvestigatedandresolved,withcorrectiveactionwherenecessary.

Local BuyingHudbaymakesbesteffortstobuyfromvendors

andcontractorswithinthelocalregionor

countrywheneverpossible.In2011alone,we

conductedfourworkshopsand14meetingswith

companiesinthecommunitiesnearConstancia

tohelpthemqualifyforbusinesswithus.

MostHudbayemployeeslive,workandraisetheir

familiesinthetownsinwhichweoperate.Webelieve

thathiringasmanylocalpeopleaspossibleisbestfor

usandforourcommunities.In2011,ourfocuswason

preparingcommunitiesneartheLalorandConstancia

projectsforemploymentattheseoperations.

InManitoba,weworkedwiththeMiningAssociation

ofManitobaandtheNorthernManitobaSector

Council(NMSC)todeveloptrainingtohelpnorthern

andFirstNationspeoplegaintheskillsnecessary

foremploymentatourManitobasites–aswellas

preparingbusinessesforcommercialopportunities

associatedwithouroperations.

AtConstanciainPeru,wehavetargetedhiring70%

ofentry-levellabourersfromthelocalregion.To

achievethisgoal,wedevelopedfairandtransparent

recruitmentguidelines,andimplementedacompetitive

wagepolicy.Wealsointroducedaprogramtoprovide

technicalskillstrainingtopeopleintheneighbouring

communitiesofUchuccarcoandChilloroya,partnering

withTecsup,thePeruviantechnicaltraining

organization.Some120studentseachcompleted

60hoursoftrainingin2011.Inaddition,welaunched

aprogramdesignedtofosterentrepreneurship,

andbeganmeetingwithothernearbycommunities

fromwhomwealsodrawourworkforce,todiscuss

developmentopportunitieswiththem.

Workforce Diversity(as of December 31 of each year)

2011Women 12.2%Aboriginal 10.5%Disabled 7.2%Visibleminorities 5.1%

Safety Performance 2011Health and safety performance (per 200,000 hours worked, except where noted)Losttimeaccidentfrequency 0.3Losttimeaccidentseverity(dayslostper 200,000hoursworked) 7.6Restrictedworkaccidentfrequency 1.5Medical aid accident frequency 7.1Firstaidaccidentfrequency 12.7Fatality(number) 0

Inthefallof2011,Hudbayconductedatourofits777mineinFlinFlon,Manitoba,aspartofitsinvolvementintheManitobaRangerProgram.


Code of Business Conduct and EthicsOurCodeofBusinessConductandEthics(the

Code)setsoutbasicprinciplestoguidethe

behaviourofdirectors,officersandemployees,

allofwhomarerequiredtocomplywiththe

Code.AllBoarddirectors,executiveofficersand

employeesatamanagerlevelandaboveare

requiredtoprovidewrittenconfirmationoftheir

compliancewiththeCode.

Towards Sustainable MiningAsamemberoftheMiningAssociationof

Canada(MAC),Hudbayiscommittedto

achievingtheperformanceobjectivessetout

inTowardsSustainableMining(TSM).Thisisa

codifiedsystemestablishingbenchmarksfor

best performance and continuous improvement

intheareasofcrisiscommunications,tailings

management,externaloutreach,energyuse

andgreenhousegasemissions,biodiversity,and

healthandsafety.OurconformancetoTSMis

externallyverifiedbyMAC-trainedassessors

everythreeyears.Forrecentperformancedata,

pleasevisittheTSMpageonourwebsiteat

www.hudbayminerals.com/English/

Responsibility/Reports/TSM-Table/default.aspx.

External Codes and InitiativesHudbayhasadoptedanumberofvoluntary

codesandexternalframeworksthatweconsider

particularlyrelevanttoourbusiness.Forsome,

weundergoregularthird-partyverification:

• ISO14001environmentalstandard

• OHSAS18001healthandsafetystandard

• TowardsSustainableMining(TSM)–an

initiativeoftheMiningAssociationofCanada

• VoluntaryPrinciplesonSecurityandHuman

Rights–anoperatingframeworkthatensures

respectforhumanrightsandfundamental

freedoms

• GlobalReportingInitiative(GRI)–thegenerallyacceptedframeworkforreportingonan

organization’seconomic,environmentaland

social performance

• CarbonDisclosureProject(CDP)–thegenerallyacceptedframeworkfordisclosure

ofgreenhousegasemissions,wateruseand

climatechangestrategies

Security and Human RightsInkeepingwithourHumanRightspolicy,we

haveadoptedtheVoluntaryPrinciplesand

trainoursecuritypersonnel(companyor

contractor)ontheUNCodeofConductforLaw

EnforcementOfficials.

TheaimoftheVoluntaryPrinciplesistoguide

companiesinmaintainingthesafetyand

securityoftheiroperationswithinanoperating

frameworkthatensuresrespectforhumanrights

andfundamentalfreedoms.In2011wefocused

onimplementationoftheVoluntaryPrinciplesat

theConstanciaproject.

ConceptandDesign:T

he

Wo

rks

De

sig

n C

om

mu

nic

atio

ns

Ltd

. w

ww

.wo

rksd

esi

gn

.co

m

Some450,000childrenareatriskofdyingeveryyeardue

totheimpactofzincdeficiencyondiarrhea,pneumonia

andmalaria.InPeru,41.6%ofthepopulationisatriskof

inadequatezincintake,makingitoneofthehigh-riskcountries.

Ofchildrenunderfive,18.3%arestunted.Thisprevalence

risesto32%intheruralareas,reaching37%inthepoorest

populations.Hudbayaimstomakeadifferenceandisfunding

anInternationalZincAssociationinitiativetoimprovethe

survival,growthanddevelopmentofundernourishedchildren

byfundingUNICEF’szincsupplementationandtreatment

programs.ZincSavesKidshasidentifiedPeruandNepalas

prioritycountries.Tolearnmore,visitwww.zincsaveskids.org.

ThisreportisanabbreviatedversionofHudbay’s2011CorporateSocialResponsibilityReport.Formoredetailed

information, please visit www.hudbayminerals.com/Responsibility,whereyoucanaccessthefullreport,which

hasbeenpreparedinaccordancewithGlobalReportingInitiative(GRI)3.1guidelines.

FormoreinformationonHudbayandourcorporatesocialresponsibilitystrategyandactivities,pleasevisitour

websiteatwww.hudbayminerals.com.

Hudbay

25YorkStreet,Suite800,Toronto,Ontario M5J2V5

Tel:416362-8181 Fax:416362-7844

Hudbayisanactivecollaboratorwith

theprogram“ReadtoGrow”,fromthe

Peruvian“AsociaciónEmpresariospor

laEducación”.

responsibility · of properties we already control, such as our lalor project in manitoba, as well...

Documents