Hudbay CSR Full Printable

The Nature of Mining
2016 Annual and CSR Report
Hudbay 2016 Annual and CSR Report 1

Our Company 06
Business and Financial Review 16
CSR Approach 21
Our People 37
Social Impact 46
Environment 58
CSR Performance Data 73
About This Report 118
Contact Us 122
Glossary 123

Commodities advance and commodities decline.
Demand and prices were both low for much of 2016.
That’s the nature of mining. As a company, Hudbay
focuses on what we can control – efficiency,
sustainability and productivity – so when the cycle
turns, we’re positioned to capitalize on it. That’s the
nature of Hudbay.
To succeed during a down cycle, Hudbay draws on internal resources, including

experience, expertise and a company-wide commitment to controlling costs
while getting the most out of every mine.
To keep building strong community relations, we operate safely and

sustainably while making sure that the communities near our operations
participate in the benefits of a well-run mine.
At every mine, in every jurisdiction, we make sustainability and responsibility

just as important as production.

Dealing with the Inevitable:
Managing Price Cyclicality
The ebb and flow of demand – and the rise and fall of prices – have always been part of mining. This means
that Hudbay has been successfully managing price cycles in the metals markets for close to 90 years. That
history, combined with the experience of our leadership team, provided useful perspective and insight
throughout the low copper price environment of the last few years.
When Hudbay incorporated in 1927, our operations were based in Manitoba and our primary market was
North America. Today, our company is international and our market is global. Over the last 10 years, demand
for copper was largely driven by economic and industrial growth in China. In recent years, China’s economy
has slowed, and growth in the world’s other major markets has also been largely muted.
At the same time, as a result of investment earlier in the decade, a number of new sources of copper –
including our Constancia mine – came on stream and global production grew. As a natural consequence of
increased supply and slower demand growth, the price for copper dropped, hitting a multi-year low in
January 2016.
We responded to these events by focusing our efforts where we could make a difference – on improving
efficiencies, strengthening our balance sheet and managing costs at all of our operations.
As Alan Hair, Hudbay’s President and Chief Executive Officer, observed at the Company’s year-end town hall
staff meeting: “We began January with copper at a multi-year low price, and the upside of 2016 is how the
organization responded. We delivered cost reductions at our operations, while still meeting guidance. We
also restructured our credit facilities, positioning the Company for an even tougher pricing environment
than turned out to be the case. Most importantly, we showed we could weather the storm while still moving
forward.”
Toward the end of the year, the copper price improved, and our focus on cost control and generating cash
flow from operations meant we were able to begin devoting resources to plans for growth and exploration.
Unlike many in the copper sector, Hudbay had maintained core exploration teams. Our capacity to respond
effectively to near-term challenges, while continuing to build and plan for the long term, is the key to
delivering positive performance.

A Foundation for Rewarding
Community Relationships
Mining is of tremendous importance to Peru. In 2015, it accounted for 17.6% of the country’s GDP and
roughly half of its exports. Mining brings tax revenue, jobs, investment, infrastructure and other important
benefits. Understandably, it can also prompt questions and concern from local communities.
In 2016, our Constancia mine saw a protest march, a roadblock and a brief occupation. For safety reasons,
the occupation led to a temporary suspension of operations. The occupiers were from communities that had
all signed co-operation and development agreements with Hudbay and with local and national governments.
For various reasons, they were dissatisfied with the scope of the agreements and the pace of their
implementation – and they voiced their concerns through protests such as these, which are commonly
employed tactics in rural and outlying districts of Peru.
With forbearance and discipline from all sides, both legitimate protest and civil disobedience can be resolved
peacefully, as were the three actions around Constancia. However, we know it doesn’t always happen this
way in Peru and we work very hard to maintain good relationships with our neighbours and mitigate
potential issues. We do so with the understanding that points of difference arise even in the best
relationships. The key to maintaining those relationships is regular and open communication, and, on both
sides, a willingness to consider other points of view.
Our Constancia operations have more than 17 people who focus on engaging with communities and
supporting development. They keep our neighbours informed about what we’re doing, and why, while
making sure we understand and acknowledge their concerns. They also work with local communities on
projects to improve infrastructure, upgrade health facilities and build capacity for sustainable economic
development and growth.

Managing Our Impact and
Supporting Biodiversity
Nothing better defines the nature of modern mining than the commitment to operating in accordance with
the principles of environmental responsibility and sustainability. An example of this commitment can be
seen every day in the hands-on, practical steps Hudbay takes to foster biodiversity.
In many cases, our steps are framed out in protocols established by organizations like the Mining Association
of Canada (MAC), the International Standards Organization (ISO) and the International Finance Corporation
(IFC). While the guidelines and standards set by these outside organizations play a key part in helping us be a
responsible operator, the drive to meet them comes from inside our organization.
People who don’t know the industry might be surprised to discover the extensive effort companies and
employees make to ensure our activities are compatible with surrounding ecosystems. In addition to miners
and engineers, we employ and partner with biologists, botanists, ecologists and environmental scientists.
They understand industry’s part in society’s overall impact on the environment, but they also recognize that
sustainable mining can contribute to enhancing the quality of life around the world and they are dedicated
to making sure that Hudbay meets high standards for environmental performance.
In our approach to conserving biodiversity, we’re guided by the “mitigation hierarchy”, a series of defined
steps, taken throughout the life of a project, that help limit the adverse impacts of a development on
biodiversity, and can potentially lead to a net gain. Here are a few examples:
In Peru, we’re gathering, breeding, relocating and releasing two threatened animal species, an aquatic
frog in conservation status and an endemic reptile from the region to similar habitats outside of the mine
site. We’re also working with members of local communities near our operations to preserve and restore
wetlands, including helping area ranchers identify practical alternatives when it comes to finding places
for feeding and watering their cattle.
In Manitoba, we have an ongoing partnership with Manitoba Sustainable Development (formerly

Manitoba Conservation) to help ensure that the local caribou populations are not adversely impacted by
our operations. We consulted with Manitoba Sustainable Development during the planning stages of our
Reed and Lalor mines to make our activities as caribou-friendly as possible, and we continue to provide
financial and practical support to help them monitor caribou populations.

In Arizona, we will be funding a variety of mitigation measures including aquatic and bird species
conservation activities, salvaging and replanting agave plants that are a food source for an endangered
bat, avoiding specific sites to prevent plant species impacts, implementing jaguar and ocelot monitoring
programs, as well as providing financial support to the Forest Service to hire a biologist for the term of
conservation to manage funds and monitor results.
Biodiversity conservation is integral to modern mining, and one of the cornerstones of our approach to
building a business that is sustainable and successful.

Our Company
Hudbay is an integrated 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, New York Stock Exchange and Bolsa de Valores de
Lima under the symbol “HBM”.
Lalor
Manitoba
100% ownership
Long-life, underground
zinc/gold/silver/copper mine
Stall concentrator processes
Lalor ore
777
Manitoba
100% ownership
Underground
copper/zinc/gold/silver mine
Flin Flon concentrator
Hydrometallurgical zinc plant
Reed
Manitoba
70% ownership
Underground copper mine
Rosemont
Arizona
92.05% ownership*
Open pit copper project
Constancia
Peru
100% ownership
Open pit copper mine and
concentrator
* Our ownership in Rosemont is subject to an Earn-In Agreement with United Copper and Moly LLC (UCM) pursuant to which UCM has earned 7.95% interest in the project and may
earn up to a 20% interest.

Our Company
CEO Message
2016 is perhaps best described as “a year of two halves”.
In the first half of the year, the copper price went from bad to worse, and virtually every mining company saw close
scrutiny and tough questions about its balance sheet and liquidity. At Hudbay, we took decisive action to reduce
discretionary spending while maintaining, above all else, our focus on safety.
From a safety-first starting point, we deferred capital expenditures, we worked wherever possible with our banks
and other sources of finance to restructure our credit facilities, and we ensured that we had clear plans in place to
weather any further turbulence in commodity prices.
During the second half, thanks to strong business performance and an improving price environment toward the end
of the year, we were in a position to move the business forward. This included reintroducing certain growth
initiatives, such as incorporating Pampacancha into the Constancia mine plan as of the end of 2018, working to
expand operations at Lalor, further advancing permitting at Rosemont and looking at exploration opportunities in
Chile.
For all of the challenges, I can confidently say that in 2016, Hudbay met both its performance and strategic goals and
positioned the Company for growth in 2017 and beyond.
“Copper and zinc are essential elements

for modern life. Mobile devices, medicine,
housing, transportation and renewable
energy all draw on these natural
resources, and demand will increase as
global production declines.”
DISCIPLINED PERFORMANCE
In 2016, Constancia completed its ramp up to full production, delivering exceptional results, with copper and
precious metals production exceeding the high end of the 2016 guidance range.
Importantly, our South America Business Unit and the team at Constancia worked closely with communities in the
area of our operations and transportation routes. By keeping the lines of communication open, striving to mitigate
any mine-related impacts that concern communities, and ensuring those communities benefit from our activities, the
team made an essential contribution to our successful results in Peru. The foundation they’ve built with our
neighbours and in the region was instrumental in helping us overcome many of the challenges encountered this past
year.
Our three mines in Manitoba – Lalor, Reed and 777 – met their production guidance goals for 2016 as well. During
the year, we welcomed André Lauzon as the new head of the Manitoba Business Unit. André has worked in mines all
around the world, and we benefit from his long experience and fresh perspective. He immediately began working to
improve overall productivity in Manitoba, with a particular focus on ways to increase production at Lalor.

André is also tasked to lead the business unit through an inevitable phase of mining: closure. Exploration has not
revealed any alternatives that could extend the life of the 777 mine, which is expected to close in 2020, or the Reed
mine, which will close as anticipated in 2018. We’re working with the communities and government representatives
of Flin Flon, Creighton and Denare Beach as they prepare for the mines’ closures. We also launched a collaborative
effort with employees to explore ways to sustain operations at the Flin Flon zinc plant, which will be affected by the
reduced ore feed in the Flin Flon area.
At our Arizona business unit, Pat Merrin and his team continued to move the Rosemont project through permitting.
During 2016, Rosemont received the final biological opinion from the US Fish and Wildlife Service, a key step toward
receiving final federal permits. Additionally, legal challenges relating to the project were resolved with rulings that
upheld both regulatory decisions and our understanding of applicable regulations. In our experience, permitting is
not a process for the impatient, but we know that it supports the construction and operation of a good mine.
LOOKING AHEAD
Copper and zinc are essential elements for modern life. Mobile devices, medicine, housing, transportation and
renewable energy all draw on these natural resources, and demand will increase as global production declines.
Within this context, Hudbay has distinct strengths. Constancia and Lalor are low-cost, long-term properties, still in
the early stages of their operating lives, offering strong growth potential. Rosemont can significantly increase our
copper production and be a showcase for sustainable mining. Hudbay has proven capabilities as a mine builder and
operator and we are proud of our record of managing costs and delivering results. The positive response to our bond
issue in December 2016 proves that the market shares this opinion.
Hudbay enters 2017 having met or exceeded all of our production and operating guidance for 2016. Our balance
sheet is stronger and we are positioned to both pursue and deliver growth in the year ahead. Regardless of where
the mining cycle may be, Hudbay, its operations and its people are well positioned for the future.
In closing, I would like to thank the Board and my colleagues at Hudbay for their continued support and
commitment. Throughout the year and across the Company, we identified our goals and pulled together to achieve
them. That’s the nature of Hudbay.
Sincerely,
Alan Hair
President and Chief Executive Officer

Our Company
Corporate Governance
Hudbay’s Board of Directors and management believe good governance supports our company’s strong
performance and long-term success. We strive to follow best practices and meet or exceed regulatory requirements.
The Board oversees the Company’s business and provides guidance to management to help meet corporate
objectives and maximize shareholder value. The Board fulfills its responsibilities directly and through five
committees:
Audit
Compensation
Corporate Governance and Nominating
Environmental, Health, Safety and Sustainability
Technical
Board members are selected based on criteria that include: judgment, character, expertise, skills and knowledge
useful to the oversight of the Company’s business; diversity of viewpoints, backgrounds, experiences and other
demographics including gender; business or other relevant experience; and the overall composition of the Board.
See our 2017 Management Information Circular to learn more.
BOARD OF DIRECTORS
W. Warren Holmes* Alan Hair Igor Gonzales*

Chairman President and Chief Technical Committee
Corporate Governance and Executive Officer Environmental, Health,
Nominating Committee Safety and Sustainability
(Chair) Committee
Tom A. Goodman* Alan R. Hibben* Sarah B. Kavanagh*

Environmental, Health, Corporate Governance and Audit Committee (Chair)
Safety and Sustainability Nominating Committee Corporate Governance and
Committee (Chair) (Chair) Nominating Committee
Audit Committee

Alan J. Lenczner* Kenneth G. Stowe* Michael T. Waites*1
Audit Committee Technical Committee (Chair) Audit Committee
Compensation Committee Compensation Committee Technical Committee
Carin S. Knickel*
Compensation Committee
(Chair)
Environmental, Health,
Safety and Sustainability
Committee
* Independent
1. Michael T. Waites, who has been a director of Hudbay since 2014, is not standing for re-election to the Board at our Annual Meeting of Shareholders on May 4, 2017. We would like
to thank Mr. Waites for his dedicated service to the Board and to Hudbay generally. In connection with the departure of Mr. Waites, the Corporate Governance and Nominating
Committee recommended and the Board has nominated Carol T. Banducci for election to the Board. Ms. Banducci’s extensive experience as Chief Financial Officer of a publicly traded
mining company, her experience as a board member for other mining companies, and her more than 25 years of financial management and strategic leadership experience with leading
global companies, including other mining companies, will be of great value to the Board.
LEARN MORE
Governance policies, committees, documents
Management Information Circular

Our Company
Business Conduct
Honesty, integrity and compliance with the law are central to the way we do business. We recognize that bribery and
corruption can pose degrees of risk wherever we operate, and we are very clear about our standards and
expectations.
Our Code of Business Conduct and Ethics (the “Code”) and related policies set out principles for directors, officers
and employees on matters like compliance with law, conflicts of interest, confidential information, protection and
proper use of Hudbay assets, and the reporting of illegal and unethical behaviour.
On joining the Company, all board members and employees are expected to sign a declaration confirming that they
understand and will comply with the Code. The Board requires every director and executive officer to disclose any
direct or indirect conflict of interest, and to confirm compliance with the Code annually. Formal, annual confirmation
of compliance with the Code and the Confidentiality and Insider Trading Policy is also required from individuals,
including directors, officers, and employees above a certain level of responsibility, those whose duties include the
transfer of responsibility, those whose duties include the transfer of funds, those in community and government
relations areas, and those who may be reasonably expected to interact with government officials over the course of
their duties.
In 2016, we refreshed our Statement on Anti-Corruption to include anti-bribery and anti-corruption provisions for
suppliers. Suppliers were notified of our new expectations through a specific email communication.
COMPLIANCE TRAINING
Our Legal department is responsible for providing compliance training on the Code and related policies, and on the
Canadian Corruption of Foreign Public Officials Act (CFPOA) and the US Foreign Corrupt Practices Act (FCPA), to specific
groups or across the organization as it deems appropriate. Training in 2016 included:
Anti-bribery and anti-corruption refresher training for the Board and senior management
Anti-bribery and anti-corruption training largely delivered by a third-party organization for groups in Peru
Corruption fraud training for the supply chain group in Manitoba
“Sole source” training in Arizona (training focused on when procurement of goods or services on a sole-sourced
basis is justifiable versus when a competitive bid process should be used)
ISSUES OR COMPLAINTS
The majority of complaints received through our third-party whistleblower reporting service involve operational
matters and employee relations. Seven incidents were reported in 2016, all of which were investigated and resolved
with corrective action where necessary. While none of these incidents involved significant allegations of fraud or
violations of our Code of Business Conduct and Ethics, there were allegations related to business, health, safety and
environmental practices; inappropriate behaviour or violation of a company policy or procedure; and conflicts of
interest.

To Report an Issue
Contact our Board of Directors by mail or email at [email protected].
To make a confidential report to the Chair of Hudbay’s Audit Committee about a perceived violation of the
Company’s internal and accounting controls, auditing matters or violations of the Company’s Code of Business
Conduct and Ethics, call +1 877 457-7318 or visit www.clearviewconnects.com. Reports are handled under our
Whistleblower Policy, and the Chair of the Audit Committee is responsible for ensuring that they are
appropriately investigated.
The Office of the Extractive Sector Corporate Social Responsibility (CSR) Counsellor is a resource available for
constructively resolving conflicts between project-affected communities and Canadian extractive sector
companies outside of Canada. The CSR Counsellor can be reached by email
at [email protected] or by telephone at +1 343 203-6735.
Canada’s National Contact Point (NCP) for the Organisation for Economic Co-operation and Development (OECD)
provides a forum where multinational enterprises, Canadian businesses, non-governmental organizations and
labour organizations can voice their views and concerns. Canada’s NCP can be reached by email
at [email protected] or by telephone at +1 343 203-2341.
The majority of complaints received through our third-party whistleblower reporting service involve operational
matters and employee relations. Thirty-four incidents were reported in 2015, all of which were investigated and
resolved with corrective action where necessary. While none of these incidents involved significant allegations of
fraud or violations of our Code of Business Conduct and Ethics, there were issues related to business, health,
safety and environmental practices; inappropriate behaviour or violation of a Company policy or procedure; and
conflicts of interest.
We also have grievance processes set up at our projects and operating sites to address community concerns.
See Community Relations for details.

Our Company
Risk Management
Risk management is essential for effective governance and to achieve our business objectives. Our risk management
policy defines our approach to enterprise risk management and establishes a framework within which specialized
policies and practices are developed and regularly refined. Through this policy, we aim to embed risk management
into our corporate culture, systems and processes.
All Hudbay executives are responsible for integrating risk management into their strategic business planning, budget
and resource allocation, operating performance, and human resource, financial and compliance processes. The
framework requires practices for risk identification, assessment, measurement, monitoring, reporting and
treatment.
While risk is specific to the nature of each business area, the framework and standard guidelines facilitate quarterly
consolidation of risk information for reporting to executive management and the Board of Directors.
The Board of Directors is ultimately responsible for overseeing the risk management function, and the Audit
Committee of the Board is mandated to assist in this regard. The Vice President, Risk Management, and the Director,
Risk Management, lead the enterprise risk management program.
LEARN MORE
Our 2017 Annual Information Form describes key corporate risks and their potential business impacts.

Our Company
Management Team
Our management team sets the tone for a culture of integrity and compliance and is responsible for establishing and
implementing the Company’s long-range goals, strategies, plans and policies, subject to the Board’s direction and
oversight.
Alan Hair David Bryson Cashel Meagher

President and Chief Senior Vice President Senior Vice President
Executive Officer and Chief Financial and Chief Operating
Officer Officer
Eugene Lei Javier Del Río David Clarry

Senior Vice President, Vice President, South Vice President,
Corporate Development America Business Unit Corporate Social
and Strategy Responsibility
Patrick Donnelly Jon Douglas Elizabeth Gitajn

Vice President and Vice President and Vice President, Risk
General Counsel Treasurer Management

André Lauzon Terry Linde Patrick Merrin
Vice President, Vice President, Project Vice President, Arizona
Manitoba Business Unit and Technical Services Business Unit
Mary-Lynn Oke
Vice President, Finance

Business and
Financial Review
In a year that started with a volatile metal price environment, we drew on our experience,
focused on our strategy and met our performance objectives.
KEY ACCOMPLISHMENTS
Maintained safety performance consistent with performance during 2015. Regardless of what is happening in the
external environment, we must act and operate safely and responsibly.
Met or exceeded all production and operating cost guidance.
Delivered low-cost production growth in copper, zinc and precious metals, with strong performance in
Constancia’s first full year of commercial production and higher throughput levels at Lalor.
Improved our liquidity position by reducing costs wherever possible, ultimately identifying over $100 million in
operating and capital cost savings, and renegotiating debt repayments.
Successfully completed the refinancing of senior unsecured notes, resulting in lower interest costs, extended
maturities and more flexible financial covenants.
Maintained our growth pipeline and moved to advance in-house brownfield projects.
2016 Summary
OPERATIONS SUMMARY
For the years ended December 31 2016 2015
Production (contained metal in concentrate)*
Copper (000 tonnes) 174.4 147.3
Zinc (000 tonnes) 111.0 102.9
Gold (000 ounces) 114.3 100.2
Silver (000 ounces) 3,756.0 2,791.5
* Metal reported in concentrate is prior to refining losses or deductions associated with smelter contract terms.
FINANCIAL SUMMARY
Financial condition (in $000s) Dec. 31, 2016 Dec. 31, 2015
Cash and cash equivalents $ 146, 864 $ 58,852

Working capital 121,539 57,613
Total assets 4,456,556 4,479,585
Total long-term debt 1,232,164 1,274,880
Equity 1,763,212 1,787,290

Financial performance
(in $000s, except per share and cash cost amounts) Dec. 31, 2016 Dec. 31, 2015
Revenue $ 1,128,678 $ 886,051

Profit (loss) before tax 5,605 (399,041)
1
Basic and diluted (loss) earnings per share (0.15) (1.41)
Profit (loss) (35,193) (331,428)
Production
Contained metal in concentrate2
Copper (tonnes) 174,491 147,280
Gold (ounces) 114,296 100,177
Silver (ounces) 3,755,896 2,791,536
Zinc (tonnes) 110,582 102,919
Metal sold
Payable in metal in concentrate
Copper (tonnes) 171,451 134,600
Gold (ounces) 92,527 93,779
Silver (ounces) 3,181,759 1,873,176
Refined zinc (tonnes) 103,453 101,920
1. Attributable to owners of the Company.
2. Metal reported in concentrate is prior to deductions associated with smelter contract terms.

Business and Financial Review
Strategy
Hudbay’s mission is to create sustainable value for our shareholders through acquiring, developing and operating
high-quality, long-life deposits with exploration potential in mining-friendly jurisdictions.
Long experience has taught us the best way to create shareholder value in the mining sector is through discovering
new mineral deposits and then developing the facilities to mine those deposits profitably. We believe the successful
development, ramp-up and operation of our Constancia mine in Peru, and our many decades of experience of mining
in northern Manitoba, give Hudbay a competitive edge relative to our peers.
We plan to grow the Company by exploring and developing properties we already control, like our Rosemont project
in Arizona. We may also acquire other properties that align with our strategic criteria, and we continually work to
optimize the value of our producing assets through efficient and safe operations.
To make sure we deliver shareholder value with our acquisitions, our criteria for evaluating every opportunity
includes the following:
Potential acquisitions should be in politically stable, mining-friendly jurisdictions in the Americas.
We must be able to leverage our expertise in exploring and developing volcanogenic massive sulphide and
porphyry mineral deposits.
We look for assets that offer significant potential for exploration, development and optimization.
Large, transformational mergers or acquisitions in the mining industry tend to be risky and potentially value
destructive; so, unless exceptional opportunities present themselves, we generally focus on specific high-quality
(low cost, long life) mines, development projects and early-stage projects.
Before any acquisition, we make sure we understand how we can add value to the property by applying our social,
technical, operational and project execution expertise, or through providing the required financial capacity and
other optimization opportunities.
Acquisitions should be accretive to Hudbay on a per share basis.
FINANCIAL AND BUSINESS OBJECTIVES FOR 2017

Continue pursuing efficiency improvements in our operations so we can sustain the cost reductions achieved in
2016, while generating incremental free cash flow and increasing net asset value.
Move ahead on high-return, in-house brownfield opportunities to increase throughput from the Lalor mine and
related milling facilities, and to incrementally add zinc and gold production in the near and medium term.
Advance the development of the high-grade Pampacancha deposit so that we can begin mining it in late 2018.
Advance permitting and technical work at the Rosemont project.
Use free cash flow generation to reduce debt and further reduce our cost of capital.
Continue to evaluate exploration and acquisition opportunities that meet our criteria, and pursue those that we
feel are in the best interest of the Company and our stakeholders.

Operations
In 2016, we focused on making our operations even more cost efficient while still achieving strong production
results and maintaining our longstanding priority and focus on safety. Our efforts were rewarded both with positive
free cash flow generation in a year of cyclical low copper prices, and by successfully meeting or surpassing our
strategic and performance goals. As the pricing environment improved over the year, Hudbay ended 2016 in a strong
position to pursue organic growth at existing operations and to consider exploration opportunities in Chile.
2016 Performance Highlights

Increased production of all metals year-over-year, reflecting the first full year of commercial production at
Constancia and higher throughput levels at Lalor.
Achieved cost reduction initiatives in 2016 with consolidated cash cost of $0.93 per pound copper, and
consolidated all-in sustaining cash costs of $1.52 per pound copper, lower than 2015 levels by 19% and 30%,
respectively.
Safety performance broadly consistent with 2015.
MANITOBA
André Lauzon hired as new head of the Manitoba Business Unit.
Ore processed at the Stall concentrator was 17% higher than in 2015 as a result of higher production at Lalor.
11% reduction in unit operating costs over 2015.
Initiated study into potential for sustaining operations at the Flin Flon zinc plant.
PERU
In its first full year of commercial operation, Constancia mined over 26.5 million tonnes of ore and produced
527,296 tonnes of copper concentrate.
Full year production of copper, gold and silver was 26%, 39% and 39% higher than 2015, respectively, all above
Constancia guidance ranges in 2016.
Driven by ongoing cost optimization efforts and improved maintenance timing, cash cost per pound of copper
produced, net of by-product credits, for 2016 was $1.09, a decrease of 6% over the previous year.

Financials
Price cyclicality is part of the mining cycle, one that Hudbay has been managing successfully for over nine decades. In
2016, we were able to draw on that history to meet or exceed all of our production targets, while our actual
sustaining capital spending was 20% lower than our 2016 guidance. Our revenue for the year was $1,128.7 million,
$242.6 million higher than in 2015. Faced with both a challenging price environment and lower copper sales
volumes, we were able to hold our cash cost per pound of copper produced, net of by-product credits, steady at
$1.46 per pound.*
Consolidated Financial Statements PDF !
Management’s Discussion and Analysis PDF !
* Operating cash flow per share and cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition
under IFRS. For further information and a detailed reconciliation, please see the discussion under “Non-IFRS Financial Performance Measures” beginning on page 40 of Hudbay’s
Management‘s Discussion and Analysis filed February 22, 2017.

CSR Approach
Our commitment to corporate social responsibility and sustainability applies to every
operation and project. The nature of modern mining demands it. So do we. That commitment
is simply the way we do business.
Grade A Responsible CSR Best Practice

Our Manitoba facilities Corporate Leader in Our Constancia
received a Towards Canada operations were
Sustainable Mining (TSM) For the second year in a presented with
Leadership Award for row, Hudbay was community relations and
achieving externally recognized by Corporate environmental awards
verified A-level grades or Knights magazine as an for their work.
higher across all TSM emerging responsible
indicators. corporate leader among
small- to mid-cap
Canadian companies.

Human Rights Primer for Mining
Personnel
Hudbay was a significant supporter of a human rights video developed by the Canadian Centre for
Excellence in Corporate Social Responsibility for the Extractive Sector. The video introduces mining
employees to the Universal Declaration of Human Rights and what they and their companies should do to
respect and protect human rights. Produced with support from Global Affairs Canada, Natural Resources
Canada and the Mining Association of Canada and its members, the video is publicly available on YouTube.

Post-Verification Review Drives
Improvement
As a member of the Mining Association of Canada (MAC), Hudbay participates in the Towards Sustainable
Mining (TSM) initiative, which requires mining companies to annually assess their facilities’ performance
across six important areas:
Tailings management
Aboriginal and community outreach
Safety and health
Biodiversity conservation
Crisis management
Energy use and greenhouse gas emissions management
The results are freely available to the public and externally verified every three years.
Every year, two or three companies that have recently undergone external verification are asked to
participate in a Post-Verification Review (PVR). Led by a multi-stakeholder Community of Interest (COI)
Advisory Panel, the PVR helps the panel analyze activities that contribute to TSM results and promote
continuous improvement in the environmental and social practices of the mining industry. We were pleased
to participate in a PVR in 2016 as a way of improving our own performance and helping raise industry
standards.
As part of the PVR, we submitted background information about Hudbay’s sustainability and TSM
performance, presented to the COI Advisory Panel via webinar and then participated in a face-to-face
dialogue in Ottawa. The Panel’s summary of findings are published on the MAC website.

CSR Approach
CSR Governance
We view responsible corporate behaviour as integral to the successful execution of our business strategy,
particularly for maintaining a good reputation with regulators and communities and being able to bring that good
reputation to new communities and jurisdictions as we grow.
Hudbay’s Environmental, Health, Safety and Sustainability (EHSS) Board committee oversees the Company’s human
rights, environmental, health and safety policies, programs and systems. The Committee meets quarterly to review
performance and management of key EHSS risks. The Committee also tracks the validation of Hudbay management
systems through the external ISO 14001 and OHSAS 18001 certifications. Day-to-day management of Hudbay’s CSR
program is the responsibility of line management at each of our operations, supported by our Vice President,
Corporate Social Responsibility.
CSR MANAGEMENT FRAMEWORK

Our Code of Business Conduct and Ethics, Human Rights Policy and Environmental Health and Safety Policy codify
our commitment to corporate social responsibility.
Corporate and site-specific management systems support decision-making and performance. Operating sites are
required to maintain certification under the ISO 14001 (environmental) and OHSAS 18001 (health and safety)
management system standards. New sites are expected to achieve certification within two years of start of
commercial operation or acquisition by Hudbay. Our Manitoba Business Unit maintained ISO 14001 and
OHSAS 18001 throughout the year, and our Peru operation achieved certification in March 2017.
We use an integrated software management system to capture, track and report health, safety and environmental
incidents and corrective actions at all sites. In 2016, we also began to use the system to chronicle stakeholder
engagement.
As a member of the Mining Association of Canada (MAC), we participate in the Towards Sustainable Mining (TSM)
program. TSM has gained international recognition and been adopted by national mining associations in Argentina
and Finland as well. TSM requirements are incorporated into Hudbay’s overall management system and company
standards. We are currently implementing TSM at our Constancia mine.
INTERNATIONAL BEST PRACTICE STANDARDS

Hudbay has adopted international best practice standards that are particularly relevant to its business:
ISO 14001 environmental management standard
OHSAS 18001 health and safety management standard
ISO 9001 quality management standard for the production and supply of cast zinc products
Towards Sustainable Mining – the Mining Association of Canada’s (MAC) set of tools and indicators to drive
performance and ensure key mining risks are managed responsibly. TSM is a requirement of MAC members at
their sites in Canada. Hudbay applies these standards internationally as well
Voluntary Principles on Security and Human Rights – an operating framework that ensures security practices
include respect for human rights
Global Reporting Initiative (GRI) – the generally accepted framework for reporting on an organization’s economic,
environmental and social performance
CDP (formerly called the Carbon Disclosure Project) – thousands of organizations globally measure and disclose
their greenhouse gas emissions, water use and climate change strategies through CDP and CDP Water
Extractive Industries Transparency Initiative (EITI) – Hudbay is an official supporting company of the EITI. Hudbay
Peru is a member of the Peruvian Mining Society, which is fully committed to the EITI process in Peru
IFC Performance Standards – Hudbay follows IFC Performance Standards at our Constancia site. Part of the World
Bank Group, the International Finance Corporation (IFC) is the largest development institution in the world that is
focused exclusively on the private sector in developing countries

PRECAUTIONARY APPROACH
Through the life of a mine, Hudbay operates under the precautionary principle: the duty to prevent harm, when it is
within our power to do so, working with a balance of probabilities if a scientific conclusion is not yet available. We
use baseline environmental and social impact studies to evaluate how to avoid, mitigate or control potentially
significant impacts; implement appropriate monitoring and management systems; and address the need for mine
closure. In all cases, provision is made for public consultation and input.
Industry Involvement
Hudbay participates in industry associations and multi-stakeholder groups through membership, funding, provision
of expertise and participation in committees and working groups. Memberships include the following:
Aboriginal Chamber of Commerce (Manitoba)
AIME – Society of Mining Engineers
Alliance of Construction Trades (Arizona)
American Exploration and Mining Association
Arizona Small Business Association
Arizona Tax Research Association
Arizona Trail Association
Asociación Vida Perú (non-profit organization that donates medical equipment and medicines)
Cámara de Comercio Canadá–Perú
Canadian Council for Aboriginal Business
Canadian Dam Association
Canadian Institute of Mining, Metallurgy and Petroleum and relevant societies
Several Arizona-based Chambers of Commerce – Benson San Pedro Valley, Greater Oro Valley, Greater Vail Area,
Nogales-Santa Cruz, Sierra Vista Area, Tucson Hispanic, Tucson Metro
Confederación Nacional de Instituciones Empresariales Privadas, CONFIEP (National Confederation of Private

Business Institutions in Peru)
Cusco Chamber of Commerce
Devonshire Initiative (a Canadian forum for leading international development NGOs and mining companies to
engage on mining and community development issues)
EITI – Extractive Industries Transparency Initiative
Empresarios por la Educación (a Peruvian private sector organization to promote and develop educational
projects)
Green Valley Sahuarita Chamber of Commerce

Grupo de Diálogo, Minería y Desarrollo Sostenible (multi-stakeholder group promoting open and transparent
dialogue on mining, environmental protection and sustainable development in Peru)
Iniciativa para la Transparencia de las Industrias Extractivas en Perú, EITI–Perú (Extractive Industries Transparency
Initiative, Peru)
International Zinc Association
Manitoba Employers Council
Marana Chamber of Commerce
Metropolitan Pima Alliance
Mining Association of Canada
Mining Association of Manitoba
Mining Foundation of the Southwest (US)
National Mining Association (US)
Southeast Arizona Economic Development Group
Southeastern Arizona Contractors Association
Southern Arizona Business Coalition
Southern Arizona Leadership Council

CSR Approach
Human Rights and Security
Governments have the primary responsibility for protecting human rights, and business has the duty to respect
these rights. Together with our Code of Business Conduct and Ethics, Hudbay’s Human Rights Policy spells out our
commitment to human rights, and draws on internationally accepted standards for business and labour practices,
community participation and security measures.
In the workplace, all individuals are to be treated with respect and dignity. We do not tolerate discrimination on the
basis of race, colour, religion, gender, national origin, age, sexual orientation, or disability (or any other category
protected by applicable laws).
Individuals are encouraged to report any real or perceived human rights concerns by contacting the Hudbay Board of
Directors directly through our corporate website, through the third-party ethics hotline or through site grievance
mechanisms.
SECURITY PRACTICES
In keeping with our Human Rights Policy, we follow the Voluntary Principles on Security and Human Rights, an
operating framework that ensures security practices include respect for human rights. Our approach is rooted in the
belief that effective security is built through trust-based relationships with neighbouring communities and principle-
based professional conduct by our employees and security contractors.
As required based on risk assessments, we train security personnel on the United Nations (UN) Code of Conduct for
Law Enforcement Officials and the UN Basic Principles on the Use of Force and Firearms by Law Enforcement
Officials. There is an extensive ongoing training program in Peru. Security supervisors and contracted security staff
there are unarmed except for government-mandated armed security guards at the explosive storage area.
In Peru, we regularly audit security policies and practices, and conduct gap analyses against the Voluntary Principles.
Following a competitive bid process, we renewed our contract with the security firm at Constancia in 2016, which
resulted in all equipment, vehicles, radios, personal kits and uniforms being upgraded, and a much lower turnover
rate among security personnel. We also upgraded the communication system in the Operations Centre, which
proved to be helpful during protest situations.
Security personnel work closely with Constancia’s Community Relations team to maintain open lines of
communication with communities and mitigate potential issues. Their efforts helped resolve three community
incidents safely and peacefully during the year. In each case, the Peruvian National Police intervened because
national laws were being violated. Constancia security supervisors followed established procedures for working with
the police, which included briefings on our commitments to uphold the Voluntary Principles, the UN Code of
Conduct for Law Enforcement Officials and the UN Basic Principles on the Use of Force and Firearms by Law
Enforcement Officials.
Because periodic social unrest affected certain mining projects in southern Peru in 2016, the Constancia security
superintendent met on five occasions with security managers from neighbouring mines. The security group, known
as SEMSUR, discusses best practices, experiences and emerging issues. Hudbay has also used these meetings to
explain our commitment to, and share our experience with, the Voluntary Principles on Security and Human Rights.

In Arizona, we hired a security manager, who has developed security procedures for our facilities and plans for
eventual construction and operations. The new security manager also worked with local law enforcement and
emergency response agencies to create the Rosemont Safety and Security Work Group. The group meets to discuss
latest project developments, safety or security incidents or plans at the property, and how to coordinate efforts
should an emergency arise.
GUATEMALA CIVIL LAWSUITS

Hudbay is named in three civil lawsuits relating to alleged events in Guatemala prior to 2010, where the Company
owned a controlling interest in Compañía Guatemalteca de Níquel (CGN). Information about the litigation is posted
to our website.

CSR Approach
Stakeholder Engagement
Stakeholder engagement is essential for building trust, strengthening relationships, reducing social risk and
improving opportunities to create value for the Company and our stakeholders.
Hudbay’s corporate Stakeholder Engagement and Community Response standards and guidance documents provide
clear direction on our expectations. Each business unit is expected to use engagement practices that reflect local
context but remain consistent with Hudbay’s objectives.
In 2016, our Board adopted a Shareholder Engagement Policy to encourage open and sustained dialogue with
shareholders. The policy outlines ways to contact Hudbay’s Board and senior management and lists relevant topics
to discuss with each group.
We use our integrated software management system to log stakeholder engagement activities. We plan to expand
this application in the coming year and use it for documenting stakeholder commitments and associated action
plans, and tracking donation requests and decisions.
2016 ENGAGEMENT ACTIVITIES AND TOPICS

Typical stakeholder priorities and concerns are listed below. Additional information on many of the topics can be
accessed by clicking on the relevant links.
Stakeholder group How we engaged in 2016 Priorities and concerns
Shareholders, investors and Conferences (10 events) Upcoming 777 and Reed mine
analysts closures
Investor meetings and
conference calls (more than 580 Exploration in northern Manitoba
events)
Annual and Special Meetings of
shareholders
Analyst and investor site visits
Investor perception survey
Employees and contractors Quarterly CEO email messages Health and safety
Senior management site visits Work processes
Company-wide “town hall” Business performance
meetings via video conference Understanding of compensation
Orientation and training and benefits
programs Opportunities for personal
One-on-one and small group development
manager/staff meetings Environmental requirements
Health and wellness committees Training for policies, permits or
and activities other requirements
Hudbay Intranet

Stakeholder group How we engaged in 2016 Priorities and concerns
Unions Meetings with union leaders on Mobility

outstanding issues Seniority
Formal grievance processes Outstanding grievances
Joint health and safety
committees
Local communities and Community information and Development project updates

Aboriginal/Native consultation meetings/dialogue Community and area activities and
American/indigenous groups
tables investment
Community partnerships Safety and environmental
Site tours and open houses concerns
Site grievance/community Land use
response processes Water use and quality
Community relations offices Cultural protection, awareness
Cultural awareness workshops and dissemination
and other training Local employment and
procurement
Training programs for community
members
Government Meetings with local, regional, Permitting

provincial and federal Environmental and legal
government officials and compliance/mitigation
regulators Aboriginal/indigenous/tribal
Joint initiatives relations (where applicable)
Economic contributions
Community and workforce
development
Customers Direct contact Achieving agreed terms of

Industry and business forums delivery for products
Provision of information on
product safety and product origin
Compliance with environmentally
and socially responsible
performance and risk
management

CSR Approach
Materiality
Once every three years, we conduct a combined materiality, hazard and aspect assessment to guide our CSR
reporting and management priorities. The assessment considers the environment, health, safety and community
(EHSC) issues that are most significant to Hudbay in terms of business impact and degree of stakeholder interest.
Our last assessment was conducted in 2014. Please see our 2014 report to learn more about our process.
MATERIALITY MATRIX
Eleven priority issues were identified during the 2014 materiality assessment. Click on the issue in the diagram below
for details on how it is being managed and our 2016 performance.

This table indicates how our priority issues align with the G4 aspects reported in our GRI index:
Priority issue GRI (G4) aspects
Ethics Ethics and integrity

Anti-corruption
Human rights Security practices

Human rights grievance mechanism
Stakeholder engagement Stakeholder engagement

Environmental grievance mechanisms
Grievance mechanisms for impacts on society
Aboriginal/indigenous relations Indigenous rights
Health and safety Occupational health and safety
Employee relations Labour/management relations
Economic performance Economic performance

Indirect economic impacts
Procurement practices
Local market presence Employment

Closure planning
Resettlement
Land and biodiversity Biodiversity
Water Water
Tailings Effluents and waste

BOUNDARIES
The materiality review was conducted on the initial boundary assumption of activities and facilities within Hudbay’s
management control (as described in the Our Company section of this report). Participants in the review process
were then asked for cases in which boundary limits should be adjusted for specific aspects. The exceptions that were
agreed to be appropriate based on stakeholder expectations and business risk are as follows:
Safety statistics are tracked and reported for all contractor activities that are under Hudbay contracts and
supervision;
Environmental incidents related to transportation between Hudbay locations and local supplier activities are
generally tracked and reviewed by Hudbay, but are not included in performance reporting in this report;
Grievances are accepted and investigated with respect to local contractors and security activities related to
Hudbay, and are included in grievance numbers and characterization in this report; and
Scope 2 greenhouse gas emissions are calculated and reported.

CSR Approach
Responsible Supply Chain
Mining is the first stage of a long supply chain that converts mineral resources into products that meet the needs of
everyday life.
We focus our supply chain responsibility efforts on activities where we can have the greatest influence – our own
operations, contractors working at our sites, local suppliers and Hudbay products up to the point at which they are
shipped (in Manitoba, the plant gate, and in Peru, the port loading facility).
We are committed to conducting our own business honestly and ethically, in compliance with the law, and in keeping
with our Code of Business Conduct and Ethics. We expect our suppliers and service providers to do the same.
Supplier standards include the following:
All contractors working at our sites are expected to meet the Company’s environmental, health and safety, and
human rights standards.
Our Statement on Anti-Corruption, updated in 2016, includes anti-bribery and anti-corruption provisions for
suppliers.
Our corporate Local Procurement and Employment Standard is aimed at supporting and utilizing local workforce
skills and business capacity to provide goods and services.
SUPPLY CHAIN PERFORMANCE

The direct supply chain for our copper concentrate and zinc metal products originates in Hudbay’s own mines in
northern Manitoba and Peru.
The indirect supply chain for energy, goods and services used in transforming ore and concentrate into products
includes thousands of suppliers. This supply chain includes operating supplies, maintenance supplies, energy and
fuels as well as capital goods:
In Peru, our top 50 suppliers accounted for 88% of our spending, and 95% of our spending was with suppliers
based in Peru.
In Manitoba, our supplier base relates to production operations and capital projects. Our top 50 suppliers
represented 50% of our spending in 2016, and 95% of spending was with suppliers in Canada. These suppliers
provided goods and services such as engineering services, electricity, spare parts for equipment, underground
haul trucks and other capital equipment.
Hudbay’s top 10 suppliers in 2016, representing 47% of procured value, were (in alphabetical order):
Cementation Canada Inc. Manitoba Hydro
CN (CAD) Moly-Cop Adesur S.A.
Corporacion Primax S.A. Servosa Cargo S.A.C.
Enel Generación Perú S.A.A. STRACON GyM S.A.
FLSmidth S.A.C. Terminal Internacional del Sur

PRODUCTS
Copper is an essential component in electronics and electrical transmission. Applications for copper use are
increasingly being identified in health care facilities, public transport and airports because of its powerful ability to
kill bacteria. Zinc is vital to the endurance of metals in manufacturing.
Our two main products, copper concentrate and zinc metal, come from our own mines in Canada and Peru:
40% of Hudbay’s copper concentrate was sold to smelters in the Americas and Europe, and 60% to smelters in
Asia. From there, several stages of smelting and refining the copper content ultimately result in 99.99% pure
copper, which provides the building block for many of life’s essentials.
We ship cast zinc metal produced at our Flin Flon zinc plant by rail and truck to industrial customers (primarily
galvanizers who use it to protect steel from corrosion) throughout North America.
Copper and zinc products are accompanied by material safety data sheets that provide details on product
composition, toxicology, handling, storage and exposure issues. We also meet our product stewardship
commitments by collaborating with governments and industry associations such as the International Zinc Association
and the European Copper Institute to help guide our compliance with international requirements such as those
provided by the International Maritime Organization (IMO).
The IMO has established hazard classification criteria for bulk cargoes, and the International Convention for the
Prevention of Pollution from Ships (MARPOL) has imposed restrictions on the disposal of bulk cargo residues which
have been classified as “harmful to the marine environment” (HME) under the amended Annex V of the MARPOL
convention. Hudbay engaged the European Copper Institute (ECI) to determine the MARPOL classification for
Constancia’s copper concentrates. From this study and others, all Hudbay copper concentrates have been
determined to not be HME.

Our People
It’s the nature of an international company that its employees bring different languages,
histories and experiences to their roles and responsibilities. For Hudbay, that diversity opens
the door to insight, innovation and opportunity.
Lost Time Accident Lost Time Accident

Frequency Severity
(lost time accidents per (days lost per 200,000 hours
200,000 hours worked) worked)
13% 2,084 67.7%

of our Manitoba People employed across of full-time employees
workforce self-identifies Hudbay in permanent, represented by trade
as Aboriginal contractor and co-op and unions
summer student jobs

Safety Accountability Starts at the
Top
Recognizing the importance of leadership in creating a positive safety culture, we introduced a company-
wide Visible Felt Leadership (VFL) program for all levels of management including the CEO. VFL guides
leaders to conduct regular safety-focused workplace visits and to engage constructively with employees at
all levels of operations. It’s a way of demonstrating to employees the importance we place on their safety
and well-being, and to engage positively around safety issues.
As part of the corporate VFL procedure, senior leaders complete a form each time they conduct a workplace
visit. They document who they talked with and all safe acts and at-risk behaviours or conditions they
observed. They also establish responsibilities and timelines for follow-up on safety concerns. Each business
unit has implemented its own VFL procedure tailored to its workplace and used by its business unit leaders.
“Employee conversations are an essential part of the program,” says Ian Cooper, Manager, Health and Safety.
“They provide an opportunity for employees and leaders to have meaningful one-on-one or small group
discussions about safety performance and concerns in their workplace, which leads to a greater sense of
personal accountability for safe work practices and ultimately to better results.”

Building Leaders from Within
Over the next three years, we’ll be rolling out a global leadership initiative aimed at building sustainable
leadership bench strength throughout Hudbay. An important part of it will be training courses offered at
introductory, intermediate and advanced levels. Introductory level courses will be held locally, while
intermediate courses will bring people from different business units together at rotating locations, and
advanced courses will be customized to individual needs.
As a starting point, we created a leadership model with business input that articulates what we consider to
be Hudbay’s core leadership competencies. The competencies fall into three main categories: growing
people, growing the Company and growing oneself.
According to Amanda Abballe, Human Resources Manager: “Growing people is important because
experienced and talented people are the basis for our company’s success and we are responsible for
developing a skilled workforce. Growing Hudbay is important for being an adaptable and focused
organization positioned to succeed in an ever-changing environment. Growing oneself builds confidence in
one’s abilities and a desire to continuously improve, which are building blocks for personal success.”
Course content will be finalized in 2017 and we expect to begin delivering the program to the first cohort
before year-end.

Our People
Our Approach
Our business depends on qualified employees who share our values and are committed to achieving our goals. We
emphasize communication, health and safety, training and development, and respect for one another, as means of
attracting, engaging and retaining talented people and fostering healthy labour relations.
HEALTH AND SAFETY

We seek a culture of zero harm and make fatality prevention our first priority. It is essential that employees and
contractors at our sites have the knowledge, skills and equipment needed to perform their jobs safely – and the
support of management and co-workers to approach each task the right way.
Consistent with Hudbay’s management systems approach, operations are required to have management systems
certified to the OHSAS 18001 health and safety management standard within two years of start-up. We also commit
to following the Mining Association of Canada’s Towards Sustainable Mining (TSM) health and safety protocol.
Conformance with these standards requires regular monitoring, self-assessments and third-party audits. We’re
putting increased attention on assessing our management systems to ensure they’re efficient and effective in
helping us achieve the health, safety, community and environmental performance we want and maintain the
externally recognized certifications.
In addition to introducing the Visible Felt Leadership program in 2016, we focused on learning from severe and high-
potential close call safety incidents by ensuring uniform application of incident criteria, investigation processes and
corrective action. Our procedure for high-potential incidents includes requirements that they be reviewed by senior
management and investigated using the incident cause analysis method (ICAM) or an equivalent process. More than
30 people in Manitoba have been trained in ICAM, and training has begun in Peru. To encourage reporting and
learning from high-potential incidents, we focus on the speed of investigation and corrective action rather than the
number of incidents.
In 2016, we began implementing critical risk and critical control (CRCC) management as part of our fatality
prevention focus. Both our Manitoba and Peru operations are putting in place processes to prioritize the
identification of key risks that could lead to fatalities and key controls to manage those risks.
At operating sites, we maintain health monitoring programs that include hearing and lung function testing and
biological monitoring for employees who may be exposed to hazardous metals in the workplace.
Our integrated management software system supports the process of recording, investigating and tracking all types
of health and safety incidents and non-conformances across the Company.
EMPLOYEE RELATIONS
We promote a OneHudbay culture across all sites, characterized by open communications, high engagement levels
and healthy employee–management relations.
To do so, we offer safe and meaningful work and competitive pay and benefits wherever we operate. Employees are
actively involved in projects aimed at driving operational efficiencies and cost savings. Wellness programs are run by
employee committees, which organize lunch and learns, competitions and targeted campaigns for common topics
like managing stress and healthy eating. Information sharing and knowledge transfer across our operations is
encouraged through short- and long-term international assignments, a vibrant intranet and online tools, and
frequent senior management visits and communications.

We respect the rights of workers to join unions and engage in collective bargaining without interference or fear of
retaliation, and we work to build productive relationships with these unions in order to collaborate on key matters.
Approximately 67.7% of our workforce (1,121 employees) is represented by a union.
TRAINING AND DEVELOPMENT

Training programs are offered at every career stage, including career readiness and tutoring, recent graduate
programs and apprenticeship programs. In 2016, we launched a global leadership initiative aimed at building a
sustainable leadership pipeline from within.

Our People
Manitoba
The majority of our employees work in our Manitoba Business Unit. We employed 1,036 people at the Flin Flon and
Reed operations, and 306 at Snow Lake at year-end 2016. There was a notable shift during the year as almost an
equal number of people at Flin Flon retired as were hired at Lalor. With the 777 mine at Flin Flon nearing closure,
many of the vacated positions were not backfilled.
Our workforce in Manitoba is more diverse and multi-faceted than might be expected. Approximately 13% self-
identify as Aboriginal. Since many of our Aboriginal hires have limited experience in the workforce, our Aboriginal
Liaison Officer works with new hires to support their integration into the workplace. At Lalor, women in senior roles
include the chief geologist, chief mine engineer and Stall Mill superintendent. Women in production roles operate
everything from underground mine equipment to the hoists that transport people, equipment and ore between
working areas as much as a kilometre below the ground and the surface.
There were three dominant themes in the Manitoba Business Unit in 2016: safety, cost reduction and workforce
transition.
STRENGTHENING OUR SAFETY CULTURE

Safety performance in 2016 was similar to the previous year in terms of lost time accident frequency and severity,
but there were a number of high-potential incidents (safety incidents that had the potential to be very serious) and
this was a matter of concern. At one point, we brought all mining crews to the surface for workshops reinforcing
safety concepts around vehicle interactions. Incident cause analysis method (ICAM) investigations were conducted
after each incident to identify root causes, and corrective actions related to communications, underground lighting,
equipment and training were implemented.
Through the investigations and subsequent management meetings, it became clear that while we may have had
good safety policies and procedures in place, we needed to achieve more consistent application. As a result, we
worked to strengthen our safety culture and ensure that people follow the rules and take accountability for their
actions. The Visible Felt Leadership program was introduced as part of this effort.
COST CONTROL AND OPERATIONAL EFFICIENCY

Our Manitoba operations stepped up their cost control and operational efficiency efforts in response to low metal
prices. Through their great work, we met our cost reduction goals and production targets.
A prime example of an improvement initiative was the redesign of ground support at the Lalor mine. Ground control
is critical for the safety of personnel and carries significant operating costs. Analysis of several ground control
incidents that occurred early in the year (fortunately with no injuries) led to a redesign of ground support methods
that both increased safety and reduced overall costs. In 2017, we’ll continue to engage with employees and work to
improve productivity, efficiency and safety.
WORKFORCE IN TRANSITION
With the 777 and Reed mines nearing the end of their operating lives, several teams are assessing future options for
the Flin Flon metallurgical complex in the hopes of finding an opportunity to sustain some of those operations and
jobs, in a way that also provides an appropriate return to our shareholders.
At the same time, we need to plan for the closure of these mines and continued expansion of the Lalor operations. In
2016, we began drafting a plan outlining our future workforce needs and how we can transition employees from Flin
Flon to Snow Lake. We also began meeting with union leaders to engage them in this work.

We continue to support our apprenticeship program, which covers a wide range of trades including electrician,
boilermaker/welder, mechanic, machinist, pipefitter and carpenter. If selected for the program, candidates follow a
prescribed program that includes working with a journeyman and attending school at the Company’s expense. Four
people graduated in 2016 and 35 remain enrolled.
Our Flin Flon team placed second overall in

the 2016 Manitoba Provincial Mine Rescue
Competition and the Snow Lake team won
the firefighting competition. Mine rescue
competitions test a variety of skills including
emergency response plans and
competencies of response personnel.

Our People
Peru
At the start of Constancia operations, we drew on the expertise of Stracon GyM to mine on a contract basis. Since
then, we’ve accumulated sufficient experience to bring mine operation in-house and transfer employees from
Stracon GyM to Hudbay. Transferred individuals are put on the Company’s pay and benefits system and participate in
our orientation process.
At year-end, we directly employed 593 people in Peru, in either full-time or contract positions. Of this total, seven
positions are held by expatriate staff.
HEALTHY AND ENGAGING WORKPLACE

We believe in maintaining a positive, healthy and engaging work environment. With many workers staying on-site at
company-provided accommodations for eight to 14 days at a time, we offer a variety of health and wellness services,
including a medical centre, massage therapy, chiropractic services and sports programs. In 2016, we initiated town
hall and small group meetings for business unit leaders to share operating results and challenges. We also started
the HR Now newsletter to keep people informed of site activities and build social cohesion.
As is typical with large Peruvian mining operations following start-up, some of the employees at Constancia have
formed a labour union. An initial collective agreement was signed with the union in 2017.
SAFETY RECORD
Our 2016 lost time accident frequency of 0.1 was consistent with 2015 performance. Notably, we achieved an 83%
reduction in accident severity.
As part of the Visible Felt Leadership program, business unit leaders made a point of going out into the operations
and engaging with employees on safety. We also began a process of identifying the top five risks in each area of
operations and ensuring that appropriate controls are in place and broadly understood and followed.
We’ve put in place hearing, respiratory protection and biological monitoring programs. Employees who are
potentially exposed to occupational health hazards as a function of their regular duties are tested and trained on
control measures and procedures, such as the proper use and care of personal protective equipment.
In 2016, we continued our safety program with the trucking contractors whose drivers haul concentrate along the
470-kilometre route from Constancia to the port at Matarani. The program includes driver training and competency
testing as well as education on fatigue management and aggressive driving. There are control points en route to
check driver compliance and allow drivers to rest if tired. In addition, trucks are linked to a GPS monitoring system
that tracks location and driving speed.
CONTINUOUS LEARNING
Across the business unit, each person received an average of 25 hours of training. Training included an effective
leadership practice program, attended by more than 50 people, which was designed to help leaders put our
corporate values into action in their everyday work.
We also completed a trainee program that saw 16 recently graduated students from Peruvian universities work in
the process plant for a one-year period. Five of the participants were hired to full-time roles at the end of the year.

Our People
Arizona
Our Arizona Human Resources (HR) team spent the year putting the final touches on people management systems
and policies that will be needed once Rosemont is approved for construction. This included finalizing a drug and
alcohol policy and implementing the OneHudbay online goal setting module to ensure that all employees have
meaningful performance goals in place, which then become the basis of their annual performance evaluations.
We promoted employee engagement through a variety of health and wellness, educational, social and community
initiatives. The employee wellness committee organized walks and hikes, including a three-mile Rosemont ranch hike
in the spring, and lunch and learns on health topics. In 2016, employees were invited on a tour of a neighbouring
mine to get a better feel for what it’s like to work at an operating mine.

Social Impact
A well-run mine creates a lasting, beneficial impact for people and communities where it
operates. That’s a natural expectation of the people who live there, and a firm commitment
for Hudbay.
Community Investment
and Charitable
Donations
($ millions)
$177.5 million 43,000+ 90%+

paid in employee wages public comments of spending in Canada
and benefits received by permitting and Peru was from
agencies through suppliers based in these
hearings, letters, emails countries
and phone calls related
to the Rosemont project

Benchmarking Hudbay’s Efforts in
Aboriginal Inclusion
Hudbay achieved a Bronze level standing in the Progressive Aboriginal Relations (PAR) program of the
Canadian Council for Aboriginal Business (CCAB) in 2016. The PAR program supports improvement in
corporate performance in Aboriginal relations in Canada through benchmarking against a broad set of
criteria in the areas of employment, business development, community investment, community
engagement and company strategy. The certification process confirms performance through an extensive
questionnaire that is assessed by an independent third-party verifier who reviews the responses and meets
with Aboriginal stakeholders and company personnel to validate the responses. Final determination at the
Bronze, Silver or Gold level is by a jury comprised of Aboriginal business people.
In each of the past three years, Hudbay completed the PAR questionnaire for our Canadian operations, and
each year the verifier’s report provided guidance to improve our program. In 2016, the report was then
reviewed by a jury of Aboriginal business leaders who determined that Hudbay met the requirements for
Bronze level in the PAR program.
Thirty-one of the 123 CCAB member companies are PAR certified, and six of these companies are at the
Bronze level. For Hudbay, achieving Bronze level represents important progress in our efforts to include
Aboriginal communities in our business. “It’s important to us as a company that we deliver on this
commitment with Aboriginal communities. This achievement shows that we’re on the right track,” said Pam
Marsden, Aboriginal Liaison Officer, Manitoba Business Unit.

From Peru to Ontario – An Organic
Opportunity
As part of our development-focused relationship with the regional government, Hudbay Peru sponsored the
construction of a modern dairy plant in the Chumbivilcas region. The Cullahuata dairy currently processes
4,000 litres of milk per day and expects to increase production to 12,000 litres in the near future. It also
produces several varieties of cheese, yogurt and butter.
The long-term goal is to establish a “dairy corridor” in the region. In 2016, Harmony Organic dairy in
Kincardine, Ontario, stepped up to help, establishing a mentoring relationship with the Cullahuata dairy.
Harmony Organic came to know the dairy through one of the Global Indigenous Development Trust trips
that Hudbay had sponsored.
Harmony Organic’s CEO visited the Cullahuata dairy and is helping it become certified as organic. As part of
that effort, two farmers from Chumbivilcas were invited to Kincardine to work at Harmony for a term and
learn by doing. Two more will go in 2017. The knowledge they bring back – about farming, animal
management and dairy operation – will be important in establishing the region’s first certified organic dairy.
In August 2016, at the third annual Community Relations International Conference in Peru, Hudbay was
honoured to receive a community relations award for its work in the construction and management of the
Cullahuata dairy plant.

Social Impact
Our Approach
Responsible companies strive to make a positive difference in society. Hudbay seeks to maximize the benefits we
create, minimize any adverse impacts, and build long-term, mutually beneficial relationships.
ECONOMIC CONTRIBUTIONS
Our primary contributions to the regions where we operate are economic, through jobs, training, and the purchase
of goods and services from local businesses. We pay municipal taxes and grants, and in some cases provide funding
to communities under land use agreements or other co-operation agreements. Importantly, we also contribute
funding and expertise to support the development of sustainable communities and livelihoods.
Hudbay is a supporting company of the Extractive Industries Transparency Initiative (EITI) in its efforts to establish a
global standard for transparency regarding host country governance of natural resources and full disclosure of
government revenues from its extractive sector. Our Peruvian subsidiary, Hudbay Peru SAC, as a member of the
Peruvian Mining Society, is supporting the EITI process in Peru.
In Canada, the Extractive Sector Transparency Measures Act (ESTMA) was proclaimed into force on June 1, 2015, and
requires businesses involved in the resource exploration and extractive sector to file reports on certain types of
payments to foreign governments. Hudbay will be filing its first ESTMA report in May 2017 for the 2016 fiscal year.
COMMUNITY RELATIONS
Through engagement, we strive to understand and address community members’ concerns and priorities and
establish relationships based on mutual respect and trust.
As defined in our Stakeholder Engagement Standard, each business unit conducts its own stakeholder analysis and
implements a stakeholder engagement plan tailored to local needs. In addition to sharing information about our
business, sites actively seek out and respond to community member feedback, and work together with communities
on joint committees and projects to solve issues and promote social, economic and environmental sustainability.
Stakeholder priorities and concerns in 2016 are listed in the Stakeholder Engagement section of this report.
Our company-wide Community Response Standard (also known as a grievance process) ensures that complaints at
each site are documented, investigated and addressed.
In addition to operational and environmental considerations, mine closure planning takes into account social impacts
and the prosperity and resiliency of communities after operations cease. These activities underline the importance of
building community capacity and helping communities avoid dependency on operations throughout the life of the
mine.
INDIGENOUS ENGAGEMENT
We seek to build mutual understanding and positive relationships with indigenous peoples through active
engagement and collaboration on exploration, environment, skills development, employment and business
opportunities.

We demonstrate our respect and support for social and cultural practices by funding and participating in indigenous
community activities, training our employees in cultural awareness and implementing cultural resource preservation
plans. In Manitoba, we have a full-time Aboriginal Liaison Officer (ALO) who is a permanent bridge between
Manitoba’s and Saskatchewan’s First Nations communities and Hudbay. The ALO works within the Company to
promote understanding of First Nation protocols vis-à-vis proposed projects and share information on opportunities
for these communities at Hudbay.
LOCAL HIRING AND PROCUREMENT

We prioritize local hiring, skills development and sourcing. Local procurement and employment, in particular, are
often identified as high priorities for stakeholders.
Our corporate Local Procurement and Employment (LP&E) Standard requires each site to:
Identify opportunities for supporting and utilizing local workforce skills
Identify opportunities for local business to provide goods and services
Include LP&E provisions when negotiating community agreements
Integrate LP&E into ongoing business processes
Our approach is guided by five principles: mutual benefit; fairness, competitiveness and transparency; targeted
capacity development; informed and integrated decision-making; and collaboration with community representatives
and supporting organizations.
Local skills development is aimed not just at developing a talent pool for our own operations, but also at building
transferrable skills for employment at places other than the mine. It includes supporting existing livelihoods, like
ranching or farming, as well as providing scholarships and funding for technical training at universities and colleges.
COMMUNITY DEVELOPMENT
In most cases, our mines are catalysts for development in nearby communities. We support community development
efforts focused on:
Helping communities build capacity to ensure sustained prosperity
Supporting community efforts to improve the quality of the natural environment
Contributing to social cohesion and community spirit
When we enter a region, we engage with communities to understand their social and economic needs and priorities.
From there, we seek to create employment and business opportunities and programs. In some cases, our community
development commitments are spelled out in formal agreements with the communities. Frequently, we help
communities through the process of requesting government funding for their projects.
Our Community Giving and Investment Standard outlines the strategic approach that Hudbay sites are expected to
follow for voluntary support, contributions and investments in local communities. It emphasizes community
involvement, mutual benefit, partnerships, sustainability and capacity development.

RESETTLEMENT AND LAND USE
In the development of a project, resettlement is sometimes necessary. When it is (as was the case for the
development of the Constancia mine), we follow negotiation processes that adhere to international standards for
fairness and transparency (including the IFC Performance Standards) and commit to providing equal or better
housing.
In situations where mining extends to land used for livelihoods, households or communities, we explore alternatives
to minimize disturbances and implement measures to protect human rights and cultural heritage.

Social Impact
Manitoba
The Lalor mine resources and exploration potential provide a foundation for growth in the town of Snow Lake, and
continued operations in Manitoba for a currently estimated 10.5 years. However, a mine cannot last forever – this is
inherent in the nature of mining, and we recognize the impact of closure on local employees and communities.
PLANNING FOR CLOSURE

With production at the 777 and Reed mines ending in the next few years, we’re assessing future options for the Flin
Flon metallurgical complex in the hope of identifying operations that can continue to contribute an acceptable
return to shareholders.
We’re also participating in the efforts of the mayors and municipal administrators of Flin Flon, Creighton and Denare
Beach, who have joined forces to support a smooth social and economic transition and encourage economic
diversification of the region. In 2016, Hudbay engaged a community planning consultant who held two planning
workshops with community leaders on this topic. We participated in the workshops at the request of the
communities.
BUILDING RELATIONS IN SNOW LAKE

In Snow Lake, we initiated quarterly meetings with the mayor and town council and participated in two community
meetings during the year. Two key topics of discussion were the accommodation camp we maintain at the site and
the annual grant-in-lieu (GIL) payment made to the Town of Snow Lake.
With the continued expansion of the Lalor mine, and the need to recruit skilled workers from across the region, we
have had to keep the camp open longer than anticipated. Many employees are choosing to commute to work and
stay at the camp during their shifts rather than move their families. We understand the concerns of the Snow Lake
community and expect to work through the issue with them over time in a way that suits our employees and the
community.
While we pay municipal taxes for facilities situated within the Town of Snow Lake, our mining operations are located
outside the town proper and are covered by an annual negotiated grant-in-lieu payment to the Town. Despite
extended negotiations, we were unable to resolve the amount of the 2016 GIL by year-end. In order to maintain our
longstanding commitment, we made a payment just before year-end, which represented a 5.3% increase over the
payments made in the two previous years, and committed to continuing negotiations in 2017.
PROGRESSIVE ABORIGINAL RELATIONS

The Aboriginal communities near our operations include Opaskwayak Cree Nation, Mosakahiken Cree Nation and
Mathias Colomb Cree Nation in Manitoba and three communities in Saskatchewan that are part of the Peter
Ballantyne Cree Nation. Through meetings, school presentations, mine tours, open houses and collaborating on joint
initiatives (usually related to employment), we work to maintain constructive relationships.
Our Aboriginal Liaison Officer (ALO) spearheads our efforts. In 2016, this work culminated in our achieving the
Canadian Council of Aboriginal Business bronze level standing in the Progressive Aboriginal Relations program.
The ALO assists Aboriginal job candidates throughout the recruiting, interviewing and onboarding process,
recognizing the challenges they may encounter as they enter an industrial work environment for the first time and
the need for Hudbay to be flexible and accommodating. The mentoring process includes personal, financial and
policy advisement from the ALO and continues for as long as needed.

In response to the Truth and Reconciliation Commission of Canada Recommendations, particularly Recommendation
#92, which is a call to action to businesses, we hosted a presentation on the intergenerational effects of residential
schools, together with the Flin Flon Aboriginal Friendship Centre, the Opaskwayak Cree Nation and the Flin Flon
Chamber of Commerce. Elders, community members and Hudbay employees were on hand to hear a moving
personal account by a second-generation residential school survivor.
We also partnered with the Flin Flon Aboriginal Friendship Centre to create a unified understanding of the Mino
Pimatisiwin (sweat lodge ceremony) on the eve of the Fall Equinox. The intention of the ceremony was to make
peace with past activity and build on respectful relationships with teachings from the past that are conducted in
contemporary time. Several individuals gathered to pray, sing and share a feast. The Elder shared teachings on
meanings behind the ceremony before, during and after the event. We plan to hold a similar event in the spring of
2017.
Other activities included cultural awareness workshops for Hudbay employees and separately for committee
members from the Saskatchewan government and the Peter Ballantyne Cree Nation communities; youth outreach
related to careers in mining; and the start of quarterly economic development meetings to inform First Nations
communities of business opportunities at Hudbay.
At the corporate level, Hudbay made a third annual donation of $25,000 to the Indspire Building Bright Futures
Bursaries, Scholarships and Awards program in 2016. Our contribution supported 15 Aboriginal students from
Manitoba enrolled in post-secondary education programs in Canada in 2016.
SUPPORTING OUR NEIGHBOURS

Hudbay donated approximately C$160,000 to community initiatives and university research benefiting the Flin
Flon/Snow Lake area, primarily in the areas of health, education, environment, culture and sports. Major
contributions ($10,000 or more) included:
Flin Flon Community Adult Learning Centre sponsorship
Flin Flon Bombers junior hockey team
Green Project – a multi-year project aimed at accelerating restoration of forest land around Flin Flon and
Creighton
NW Regional Caribou Research and Management Committee
In addition, our employees contributed more than 200 hours to community projects, such as helping out at the Flin
Flon School Division Science Fair and with Operation Red Nose, a safe ride home service for area residents during the
holiday season.
COMMUNITY HOTLINE
We invite community members to report any concerns or complaints through our concern/alert email and phone
line. There were four complaints registered in 2016, relating to one contractor’s safety, another contractor’s
environmental performance, lake safety and a visual annoyance.

Social Impact
Peru
Our growing track record of addressing concerns and tangibly improving the lives of local stakeholders is enabling us
to build goodwill in communities in Peru. While we cannot fulfill every stakeholder interest, we are known for our
strong commitment to transparency and communication.
Efforts are spearheaded by our Government and Community Relations teams. The Community Relations team has
offices open to the public in both communities in our direct area of influence and engages with the public and
authorities along the concentrate transportation route. Their work was key to helping us peacefully resolve three
potentially serious community incidents in 2016.
OUR CLOSEST NEIGHBOURS

The two communities closest to the Constancia operations are Uchucarco and Chilloroya. We have life of mine land
use agreements with both communities, letting us use portions of their community-owned land.
As part of the agreements, we made specific commitments to local employment and use of local suppliers and to
investments in health, education and social development. Multi-sectorial committees for development (CMDs),
comprising Hudbay and community representatives, approve and oversee the projects being carried out using the
proceeds of the agreements. The funds were used in 2016 to purchase ambulances for the health centres in each
community and to fund a telemedicine project that will improve access to quality health care through
telecommunications technology.
SUPPORTING COMMUNITY DEVELOPMENT

Beyond our immediate neighbours, we support community development throughout the region in a variety of ways.
We’ve signed co-operation agreements with nine communities and districts in our indirect area of influence,
committing to work together on social development projects within a specified budget provided by Hudbay. In
fulfilling these agreements, we also engage with various levels of government and implement some projects as
public-private partnerships. We’ve completed four projects under the Peruvian Works for Taxes program, which
allows a company to pay up to half of its income tax through contributions to public infrastructure projects.
In 2016, we reached an agreement with the district of Livitaca that will bring major improvements to water and
sanitation services, and signed a co-operation agreement with the district of Velille just before the end of the year.
Under a co-operation agreement with the district of Chamaca, Hudbay funded a forestation program for the
10 communities. The program included 12 tree nurseries, warehouses in each community for storing equipment,
technical training and promotional events. During the year, Hudbay Peru and the district of Chamaca also
inaugurated the first liquid nitrogen plant in the province of Chumbivilcas, which we funded as part of an agrarian
development project. The facility is used for breeding cattle, using practices that promote genetic improvements
that will in turn enhance milk and meat production.
We’ve signed co-operation agreements with three communities on the transportation route from Constancia to the
port at Matarani. Under these agreements, Hudbay commits to exploring how we can help with development
projects. This can be as simple as providing seeds and equipment for farming community crops, or as extensive as
offering the services of our Technical Assistance Office to act as an advocate for the communities in applying for
public and private funding of projects.

BUILDING COMMUNITY CAPACITY
Constancia employed 644 local people (employees and contractors) in 2016, mostly from the communities of
Uchucarco and Chilloroya. About 90 people work in advanced jobs, operating heavy equipment or providing technical
assistance in the processing plant, after having completed technical training funded by Hudbay. The remaining
employees work as general labourers in operations and logistics, and in hospitality jobs at the camp. Whatever the
role, these are new, secure, well-paying jobs that otherwise would not exist in the area.
We have two ongoing technical training programs for community members of Uchucarco and Chilloroya. A joint
venture with Stracon GyM provides four months of basic operator training. Thirty-five people completed the
program in 2016 and worked for Stracon GyM for several months thereafter.
A program with Servosa, our main transportation provider, offers six weeks of professional driver training. Five
people completed the course in 2016 and joined Servosa’s workforce. At the request of the communities, we also
conducted reinforcement training for people who had not passed the first time.
In addition, the Constancia Operations team provides ad hoc training to community members when positions
become available. In total, 20 people from Uchucarco and Chilloroya participated in this type of training in 2016.
Hudbay also works with the Global Indigenous Development Trust to promote community capacity building. We’ve
sponsored several trips that bring people from communities near Constancia to Canadian towns, particularly mining
communities. They see how mining and sustainable development can co-exist and thrive, and hear directly from
Canadian community, municipal and business leaders about their experiences.
LOCAL COMPANIES PROVIDE VALUABLE SERVICES

There were 75 local community companies registered in our database in 2016. Our purchases from them totaled
approximately $8.7 million. This is a significant decrease from the $25.9 million spent the previous year, mainly due
to the fact that fewer services are required during the operation phase than the construction phase.
Most local companies are focused on trucking or hospitality. We collaborated with the CMD in Uchucarco in 2015 to
buy trucks they could rent to local contractors to transport Constancia concentrate to the port of Matarani. This has
worked well and they are providing a valuable service to us. We’re in discussions with the community of Chilloroya
about hospitality services they can provide to both our accommodation camp and those of nearby mines.
5,000-YEAR-OLD REMINDERS OF THE PAST

We opened an exhibit this past year at the Fortunia accommodation camp, which displays the archaeological findings
made during the exploration and construction of Constancia. Some of the artifacts date back nearly 5,000 years,
including spearheads that were used for hunting and gathering food.
COMMUNITY COMPLAINTS AND CONCERNS

There were 28 complaints or concerns registered through the Constancia grievance mechanism in 2016. Of the total,
82% related to local employment and were typically investigated and resolved through co-ordination with the
relevant functions within Hudbay.

Social Impact
Arizona
The Rosemont project site is located 48 kilometres (30 miles) southeast of Tucson, Arizona’s second largest city.
Including the surrounding areas, the diverse population totals close to one million people. There are numerous local
stakeholder groups with varying areas of interest. A number have followed the Rosemont project closely for many
years. Most eagerly await Rosemont’s construction, given its potential to generate jobs and boost the local economy.
A smaller number are vocal opponents of the project, often on an environmental basis. Rosemont is committed to
understanding the interests of all stakeholder groups and constructively engaging with them to ensure that they’re
informed of our plans and that we understand their concerns.
PERMITTING AND STAKEHOLDER CONSULTATION

The Rosemont project has been going through the permit approval process for more than nine years. By year-end
2016, the process had included 17 government agencies, more than 450 studies and more than 43,000 public
comments to the agencies through hearings, letters, emails and phone calls.
Stakeholder concerns have related primarily to environmental impacts, but also to worries about noise, traffic,
cultural heritage and recreational use impacts. Our plan to design, build and operate a unique mine incorporates
some of the most advanced thinking in mining. At Rosemont, we will implement more than $60 million in mitigation
measures to balance the presence of the mine with the natural elements around it. These are detailed in the
Rosemont Environmental Impact Statement prepared by the United States Department of Agriculture Forest Service
and the Rosemont Biological Opinion from the US Fish and Wildlife Service. There are 114 individual mitigation and
monitoring requirements within the Forest Service requirements alone, which add up to hundreds of millions of
dollars in further expenditures for mitigation and monitoring obligations over the life of the mine. These include:
A well owners’ protection program
Monitoring a jaguar for the life of the project plus five years
Conservation activities for aquatic and bird species
Dark skies monitoring for the life of the project
Relocation of 10.6 miles of the Arizona Trail, in collaboration with the Arizona Trail Association
Annual community donations of $500,000 per year during operations
An endowment fund to support cultural, recreational, education and conservation community goals after
operation
See the Arizona Environment page of this report to learn more about the mitigation measures planned for
Rosemont.
BUILDING MEANINGFUL RELATIONSHIPS

We’ve put in place a community relations (CR) plan with a stated mission of building constructive relationships with
stakeholders based on integrity and mutual respect by communicating timely, accurate and consistent messages.
The plan includes tools and systems developed to proactively identify, assess and mitigate risks associated with
planned activities and new developments related to Rosemont that may affect community relations.

As permitting advanced, we refined our plans in 2016 to address how we intend to keep stakeholders informed once
construction begins. We want to make sure that stakeholders know well in advance what to expect at each stage. We
also conducted an in-depth stakeholder mapping exercise with outside expertise to help us identify our key
stakeholders and better understand their interests and level of influence.
Separately, we had an audit performed of our community giving process to identify opportunities to improve
transparency and ensure that all donations are in accordance with the business unit’s community giving priorities. As
a result, we now have a Community Giving Review Committee that meets monthly and reviews all requests for
funding against our priorities and budget. Decisions are documented and distributed among business unit leaders
before final approval.
WORK CONTINUES ON CAP WATER PIPELINE

A significant part of our Rosemont community investment is the construction of a pipeline to carry Central Arizona
Project (CAP) water to the Green Valley area. It’s part of a commitment made to the community that allows the
Community Water Company of Green Valley to make use of its CAP allocation and offset groundwater drawdown
within its service area.
In 2016, approximately 2,000 feet of 54-inch pipeline was installed under the interstate highway (I-19) near the
terminus station at a cost of just over $1 million. This section of pipe is the second segment of the nearly eight-mile-
long pipeline that will be installed at an estimated overall cost of $25 million.
HELPING HAND IN THE COMMUNITY

We’re committed to providing financial support to local, non-profit organizations that provide services and programs
in five prioritized areas: education (in particular, science, technology, engineering, environment, agriculture and
mathematics initiatives); social services; military and veterans support; job training; and infrastructure projects.
Our school grants program awards between $500 and $5,000 to local public schools. Grants totaling $10,000 were
given in 2016, including a $1,500 grant to Flowing Wells School District to expand its First Tech Challenge program,
where students work in teams to build robots and then face off in competitions against other schools.
As part of the 2016 United Way campaign, employees were given a day off to volunteer at one of two community
projects. They either did landscaping and moved furniture at a women’s shelter or washed windows and blinds at an
assisted living building for seniors.

Environment
At Hudbay, science, skill, experience and personal commitment guide our actions, mitigate
our environmental impact and ensure that we operate sustainably.
Total Greenhouse Gas Emissions Direct Energy

Consumption by
(kilotonnes of CO2-equivalent and intensity) Primary Energy
Source
(terajoules)
2.8% 19%
of the land we own, improvement in water
lease or manage is used consumption intensity
for Hudbay activities (the and 3.8% reduction in
rest is left in its natural Hudbay Peru was greenhouse gas (GHG)
state) recognized by the emissions at our
SNMPE (National Society Manitoba operations
of Mining, Petroleum
and Energy) for
innovative reclamation
practices involving local
communities

Awarded for Reclamation
Hudbay Peru received an SNMPE (National Society of Mining, Petroleum and Energy) Sustainable
Development Award in the environmental management category for its progressive reclamation practices.
In keeping with environmental best practices, we try to return land to its original state as soon as it’s no
longer required as part of production. At Constancia, we implemented a program that paid community
members for collecting native grass seed for reclamation purposes and helping plant the seeds and erect
erosion control structures.
The response to the program by the local communities of Chilloroya, Uchucarco, Casa Blanca, Collana Alta
and Huaylla Huaylla was overwhelmingly positive, with 2.2 tonnes of native seeds collected, and over 26
hectares of land revegetated in less than a year.
Six community members work with us on an ongoing basis, managing our tree nursery and doing
reclamation work. We’re planning to conduct a larger-scale forestation program in 2017 and will hire
additional workers for that.

Maintaining Dark Skies
Maintaining dark skies is important to scientific astronomy in Arizona, but must be aligned with the need to
meet employee safety requirements of the Mine Safety and Health Administration (MSHA). To achieve both
goals, the Rosemont project will implement a groundbreaking, technologically advanced lighting system.
We updated our lighting plan in 2016 in consultation with an International Dark Sky Association board
member. Features include the use of filtered LED fixtures, colour rendering to avoid blue-spectrum lights
(which are among the most harmful to dark skies), and shielding/beam control on non-fixed lights to reduce
direct uplight. All of these measures will minimize the effects artificial lighting can have on the night sky. In
addition, we plan to implement a variety of dust control measures that will aid in reducing potential light
dispersion.
The impact of these new measures will be significant – reducing output from 21,815,355 lumens in the
original engineering plans to 6,529,184 lumens.
Our other commitments include annual funding to the Smithsonian Institution at the Whipple Observatory
to measure light and light effects and implement additional ground-based monitoring sites. During
operations, light emissions will continue to be monitored by STEM Labs, a non-profit organization dedicated
to understanding the effects of maintaining dark skies for astronomy and environmental impacts.
Once Rosemont’s permits are received, a Sky Brightness Monitoring Plan Oversight Committee will be
created to monitor all pertinent data from the operations. Should any impacts exceed expectations, the
Committee will make recommendations for corrective action. The committee will be comprised of experts
from the astronomy community and the lighting industry and representatives from both the Forest Service
and Rosemont.

Studies in Orchids
We’ve done a lot in the interest of the Coleman’s coralroot (Hexalectris colmaneii), a rare orchid found
growing in southwestern New Mexico and southern Arizona, in part near the site of the proposed Rosemont
mine.
Rosemont is contributing to the science and understanding of the plant.
Extensive surveys conducted by Rosemont have expanded the known distribution of the species to over 15
locations in seven distinct mountain ranges in southeastern Arizona.
Originally the Coleman’s coralroot orchid was thought to have a very specialized habitat, occurring only in
the bottoms of shaded canyons with dense oaks and then only in a few canyons in three mountain ranges in
southeastern Arizona.
Rosemont has redesigned the mine plant site to avoid one location where large numbers of Coleman’s
coralroot spikes have consistently been observed. The area will be fenced to limit potential impacts from
disturbance. The dry stack tailings position has also been realigned to avoid a second population known to
occur in the vicinity of the project. Consequently, the project will directly impact small numbers of Coleman’s
coralroot.
Overall, our surveys since 2010 have greatly increased the understanding of the habitat, range and relative
abundance of orchid spikes known to exist. These surveys have also greatly expanded understanding of
what is habitat for Coleman’s coralroot by documenting the orchid in areas that are strikingly different from
the large drainages originally thought to be a requirement for the species. Surveys commissioned by
Rosemont have also documented several locations of a similar species, Hexalectris arizonica, that had not
been known previously, as well as a species of orchid, Hexalectris parviflora, that was not previously known to
occur in the US.

Rosemont continues to survey areas in the vicinity of the Rosemont Copper Project to document the
persistence of known locations of Hexalectris species and search for additional locations. Rosemont has also
continued to monitor three locations where large numbers of orchid spikes are consistently found in order
to provide long-term data to look for trends in orchid numbers and correlations with climate and habitat
variables.

Environment
Our Approach
A number of environmental considerations govern our activity. We are accountable under extensive environmental
commitments, and to ourselves as well. We know that mining must balance mineral development and the
surrounding environment.
Our strategies include:
Planning and acting to minimize our environmental footprint at every stage of operation, from exploration to
decommissioning and closure
Maintaining ISO 14001 environmental management system certification at all operating facilities and complying
with Towards Sustainable Mining (TSM) environmental protocols and third-party verification processes
Rehabilitating disturbed land to accelerate natural reclamation
Supporting community projects to minimize the aesthetic impact of our activities
Our environmental management program consists of a corporate Environmental Health and Safety Policy, and at
each site, codes of practice, regular audits, the integration of environmental procedures with operating procedures,
employee training and emergency prevention and response procedures. Dedicated teams are charged with
managing our environmental activities and compliance with applicable environmental standards and regulations.
Each operating facility both in Canada and abroad must apply and participate in the TSM program. For all locations
and activities where Hudbay has operating control, the management system must incorporate the elements of all
TSM protocols relevant to its phase of the mine lifecycle. At operating sites, this means achieving Level A or higher
for all protocols within two years of start-up.
LAND AND BIODIVERSITY

Each site develops its own biodiversity management plan specific to its location. The plans apply the biodiversity
mitigation hierarchy, a set of prioritized steps to alleviate environmental harm as much as possible. The four key
steps are as follows:
Step 1: Avoid impacts by locating facilities and access routes away from natural and critical habitats.
Step 2: Minimize impacts through the use of appropriate management systems and mine plan designs that limit
land disturbance throughout the mine life.
Step 3: Restore ecosystems by progressively rehabilitating affected areas during operations and at closure with a
goal of eliminating the impact over time through preservation or maintenance.
Step 4 (if needed): Offset residual impacts through programs to compensate for biodiversity losses when long-
term residual impacts cannot be avoided.
Hudbay’s Biodiversity Conservation Standard sets out the minimum requirements for identifying environmental
conditions and managing biodiversity conservation and ecosystem services. The standard is consistent with our
commitment to implement the TSM Biodiversity Conservation Management Framework and Protocol.

ENERGY USE AND GREENHOUSE GAS
We use fossil fuels to extract and transport ore, and electricity to run our processing plants. Our operations track
their energy consumption and associated GHG emissions. We strive to reduce our impact by using energy as
efficiently as possible – for example, by installing LED lighting or on-demand ventilation systems that only run when
needed.
AIR
We monitor and report air emissions to comply with air quality laws and regulations in the countries where we
operate.
WATER
Our commitment to continuous improvement leads us to identifying opportunities related to water management
and to updating our water-related risk assessments.
We design water-efficient operations and continuously monitor our consumption and discharge, while maintaining
our commitments to local users and regulatory agencies within the jurisdictions where we operate.
Each of our sites – and each community in which we operate – has different water needs and challenges depending
on the supply, demand and water quality in the area. Prior to developing a project, we assess water quality and
availability as part of our feasibility and environmental impact studies. These assessments also consider the water
needs of local communities. Mining site designs and management plans incorporate water considerations
throughout the entire mine lifecycle.
Hudbay submits an annual water report to the CDP (formerly called the Carbon Disclosure Project), which can be
accessed from the CDP website.
WASTE AND TAILINGS

All Hudbay operations have waste management plans to reduce, reuse, recycle and responsibly dispose of waste.
Waste rock from our mines and tailings from processing plants are a particular priority.
Waste rock (mined rock that does not have economic value) is managed on-site according to strict and detailed
environmental regulations and industry standards. Wherever possible, it is reused as fill in underground operations,
to construct tailings containment structures, and for site rehabilitation.
Tailings are the finely ground rock, trace metals and process chemicals remaining after ore has been processed. We
adhere to the TSM protocol for managing tailings. Where water is plentiful, tailings have historically been piped into
secure engineered impoundments contained by tailings dams. TSM guidelines address best practices for the
location, design, construction, operation and closure of tailings facilities so that structures are stable and comply
with industry and government standards, and solids and water are properly managed. In accordance with the TSM
protocol, our tailings management design and practices in Saskatchewan and Manitoba and at Constancia are subject
to independent review processes ranging from dam safety reviews every five years to bi-annual independent peer
review board assessments.
Rosemont plans to construct a state-of-the-art, dry-stack tailings facility, which can significantly reduce
environmental impacts compared to traditional tailings facilities. Learn more about dry-stack tailings on our Arizona
Environment page.

CLOSURE AND RECLAMATION
In all jurisdictions where Hudbay operates, mining companies are required to plan for closure before the start of
operations and provide financial assurance to relevant regulatory agencies for proposed mine reclamation activities.
Once mining is finished, we aim to leave behind land that will support natural ecosystems and productive uses. We
follow the guidelines set out in the TSM framework on mine closure, which consists of eight key elements, ranging
from effective and sustainable closure planning, to consultation with communities, continuous improvement, and
monitoring of reclamation programs.
In addition to the TSM framework, Hudbay’s mine closure planning in Peru is guided by IFC Performance Standards
and by Peruvian mine closure regulations.
Closed mine site activities are tailored to applicable regulatory requirements and the characteristics of each site.
They can include monitoring activities and adaptive management strategies to ensure the effectiveness of the
reclamation activities until such time as reclamation objectives are determined, in consultation with regulators, to be
complete.

Environment
Manitoba
Our Manitoba operations are located in the Canadian Shield, in a sparsely populated region of bedrock, bush, lakes
and swamps. Recognized worldwide for its mineral deposits, the region is treasured by many for its stark and rugged
beauty. Throughout Hudbay’s history, we have carefully closed and remediated 19 mines in the region, returning
most of the land to the way it was long before we arrived.
MINIMIZING OUR FOOTPRINT

From exploration to closure, we seek to keep our environmental footprint as small as possible.
One of the best examples is our Reed mine. The mine is located within the boundary of a Manitoba provincial park.
By design, there is no mill or tailings facility. From the start, we collaborated with the Manitoba authorities to ensure
the mine did not affect the local caribou habitat – including only clearing trees on seven of the 14 hectares our
permit allowed. Even then, trees were removed selectively and the wood was given to the provincial park for use as
firewood. The main fan was installed underground and sound-reducing enclosures were built for generators,
compressors and the ventilation heater. Reed employees are trained on how to avoid scaring caribou and we have
implemented Manitoba Sustainable Development’s postcard system for reporting caribou sightings to support
research efforts.
As mining progresses at Reed, we will need backfill material to stabilize the underground workings. We have an
agreement with provincial authorities to use acid-generating waste rock from a nearby former mine site. By moving
this material to our site and then underground, the potentially negative environmental impacts of this material will
be mitigated.
USING RESOURCES WISELY

While fresh water and clean hydroelectricity are abundantly available in the region, we strive to use water and
energy as efficiently as possible. For the past several years, our Manitoba operations have worked towards a 1% year-
over-year reduction in both water consumption intensity and GHG emissions intensity (water consumption and GHG
emissions per tonne of production), using 2014 as the base year.
Water usage is managed through water rights licences and related reporting. Discharge is managed at four discharge
points using site-specific water treatment technologies and extensive water quality monitoring. Our environment
department tracks water quality data and reports to management on an exception basis.
The Manitoba Business Unit’s total water consumption declined by 2.8% compared to 2015, despite increased
production. Water consumption intensity declined by 19%, a good sign that our efforts to stress environmental
awareness and promote the reduced use of water, materials and other resources are taking hold.
We started working on water recycling projects to further reduce our use of fresh water. The projects would enable
us to draw water from the clarification pond and from the tailings facility to use in the Flin Flon mill.

While we use renewable hydroelectricity to run the Water Consumption
processing plants, we need propane and diesel in the Intensity
mines for heating and for extracting and transporting ore.
In older mines, reducing fuel consumption becomes more (m3/tonne of production)
difficult because of the need to dig deeper and haul
material further, which also means more underground
workings and ventilation are required.
Despite the challenges, we reduced our overall energy

usage by 2.7% and our energy intensity by 3.2% compared
to the 2014 base year. We also met our annual GHG
target, reducing emissions by 3.2% (from 59,965 tonnes
CO2-e in 2015 to 58,065 tonnes CO2-e in 2016).
Change often comes in increments through simple

improvements. For example, in 2016 there was a
concerted effort to improve equipment productivity by
implementing “hot changes”. This means that when a
driver of a vehicle vacates his or her seat for a lunch break
or the end of a shift, somebody else immediately replaces
the person, rather than have the vehicle idle. Vehicles are also shut off when they are not being used. This focus had
the spin-off benefit of reducing GHG emissions per tonne of product moved.
ADDED RESPONSIBILITIES AT SNOW LAKE

With Lalor mining and processing operations in full swing and potentially expanding, our environmental
responsibilities have grown, and will continue to do so. In 2016, we hired environmental specialists at Snow Lake to
oversee activities and manage regulatory compliance.
Permitting is underway for an expansion of the Anderson tailings impoundment area near Snow Lake. We conducted
community consultations in 2015 and filed our application with the provincial government in 2016. We hope to begin
construction in early 2018.
We’re planning to build a paste backfill plant that would enable us to use Stall Mill tailings as backfill in the Lalor
mine, rather than sending them to the Anderson tailings impoundment area. This is considered an environmental
best practice that would help with water quality on the Anderson tailings and reduce the expansion requirements of
the tailings facility. Government approval to proceed with this project was received in January 2017.
Hudbay assumed additional environmental responsibilities with our 2015 acquisition of the New Britannia gold mill,
which is currently on care and maintenance. There is ongoing active treatment of the tailings on site, and monitoring
and sampling requirements have been added, which are being managed by our new environmental specialists.

DUST FLARE-UP PROMPTS ACTION
Air emissions from our Manitoba operations in Flin Flon are typically minor and related to vent and fugitive dust
emissions. A dust management plan has been honed over many years and ensures that particulates remain below
regulatory limits.
In 2016, highly unusual weather conditions created a tailings dust flare-up in Flin Flon. The situation did not breach
provincial health standards or reach the community. Hudbay Manitoba took immediate action to contain the flare-up
and notify relevant authorities. Snow and dust fencing was installed and wooden pallets were placed over the
affected area. We also called neighbours to see if they were impacted in any way. Since then, we’ve taken the
precaution of installing geotextile material over future potential dust sources.
Later in the year, the Saskatchewan government conducted a legal compliance audit for our past five years of
operation at Flin Flon, which included the 2016 dusting event. In their findings, the auditors commended Hudbay for
our effective dust management plans and actions taken during unusual weather events.

Environment
Peru
Our Constancia operations are located high in the Andes Mountains of southern Peru, in a region renowned for its
rich mix of minable materials.
FOCUS ON WATER
Mining operations need water – as do communities and ecosystems.
To support efficient water use, we run studies to understand how much water enters the watershed and how much
we can use for our operations without interfering with the requirements and needs of the communities and the
natural environment. We also monitor the water quality of the rivers near Constancia to assess any impact that our
activities may have on the environment. This is particularly important during the rainy season when water volumes
increase.
In 2016, we strengthened our water management systems and controls. This included implementing flow metres
and standard methodologies for measuring rainwater to improve compliance reporting. To prevent leaks to
waterways, we took a close look at critical parts throughout the mine and processing operations and put in place
additional engineering controls where needed. In preparation for the rainy season (normally from November to late
March/early April), all sediment management controls were inspected to ensure that everything was in good working
order.
Water balance studies conducted in 2016 revealed that there was enough water to meet our commitments without
the reservoir. At the same time, the communities were asking for additional assistance because of recent drought
conditions. We are developing an action plan to address these needs.
ENERGY EFFICIENCY IMPROVEMENTS

As a first step toward setting environmental targets, we rigorously tracked energy use, water use and GHG emissions
in 2016 to establish baseline data sets.
When it comes to energy use and GHG emissions, the main challenge is that the amount of energy needed varies
significantly depending on the type of ore being mined at any given time – making it difficult to meet targets. As a
result, we’re focusing our initial reduction efforts at the worker accommodation camp, where we have more control
over consumption. One of the first actions will be to retrofit lighting to energy-efficient LED technology.
PUTTING WASTE TO GOOD USE

The camp is also where we plan to implement water reduction targets and organic waste diversion projects. We
currently compost organic waste for use in our revegetation and forestation programs and are studying other
diversion options.

PARTNERS IN BIODIVERSITY CONSERVATION
In Peru, we’re committed to ensuring there is no net loss of biodiversity as a result of our activities. Our biodiversity
action plan (BAP) was developed in line with international standards (Towards Sustainable Mining and IFC) for
protecting and conserving biodiversity. The plan covers management of protected plant species, rescue and
relocation of threatened animal species, wetlands management and revegetation programs. Most of the activities
are done in partnership with the local communities and integrate ancestral know-how where possible.
For the past two years, we’ve hired sustainability consultants to work with community users as part of a bog
management and sustainable use plan designed to promote the conservation of the land. The team has helped
farmers plant oats on dry land plots so their cattle can graze there during the dry season, instead of using the
wetlands. They’ve also built irrigation trenches for grasslands outside the bog area and improved water catchment
structures and systems. In 2016, they started training the farmers on how to care for the cattle in this new
environment.
During 2015, we implemented a program in which community members are paid for collecting native grass seeds
and helping with progressive reclamation of disturbed areas. Our efforts were recognized in 2016 by SNMPE
(National Society of Mining, Petroleum and Energy) as an innovative, progressive reclamation practice.
TAKING ACTION ON DUST

Keeping dust levels down on our property and along the concentrate transportation route is important to us and to
our community stakeholders. At times, we’ve used water to suppress dust but have not found it to be as effective as
dust suppressants. In 2016, we initiated a competitive bid process for a dust suppressor contractor to meet our
needs during the 2017 dry season.

Environment
Arizona
The Rosemont project is located in southwest Arizona in the Santa Rita Mountain range and is intended to be a
showcase for sustainable mining once built.
WATER CONSERVATION
Water is a concern in Arizona, and the importance of good water management has been prioritized in the Rosemont
project design.
We will employ state-of-the-art techniques and processing technologies, including process water recovery and the
development of “dry-stack” tailings. With dry-stack tailings, tailings are dewatered through filtering and built into
dense, durable, dry stacks that do not require a dam for retention. Dry-stack is a proven tailings technology that uses
about 50% less water and less land than conventional tailings containment design, and reduces the potential of
environmental impacts to groundwater by nearly 90%.
To further conserve water resources and biodiversity, we established the Rosemont Copper Conservation Lands
Program. This program includes mitigation proposed in the permitting process as well as additional areas that
Hudbay has set aside for conservation purposes. Hudbay Arizona will permanently conserve more than 4,827 acres
of open land and allocate more than 1.9 billion gallons per year of private surface water rights to the public. Once
finalized, this program will establish secure, sustainable habitat for bats, birds, fish, frogs and other animals,
including some endangered species.
PROTECTING ENDANGERED AND SPECIAL STATUS SPECIES

We’ve committed to funding a variety of mitigation measures detailed in the Rosemont Environmental Impact
Statement and the Rosemont Biological Opinion to protect endangered and special status species. This includes
aquatic and bird species conservation activities, salvaging and replanting agave plants (a food source for an
endangered bat), avoiding specific sites to prevent plant species impacts, implementing jaguar and ocelot
monitoring programs, and providing financial support to the Forest Service to hire a biologist for the term of
conservation to manage funds and monitor results. See the Arizona Social Impact page to learn about our financial
commitments related to these efforts.
In 2011, a wild jaguar was observed in the Santa Rita Mountains near the Rosemont property and there have
subsequently been intermittent sightings of a lone jaguar in the mountain range, with the most recent being
October 2015. The US Fish and Wildlife Service has designated approximately 764,207 acres in Arizona and New
Mexico as critical jaguar habitat. The Rosemont project would take up less than 0.7% of that land and only one-
eighth of that amount would be occupied by the actual mine.
We engaged large felid (big cat) experts to guide us in developing a plan for surveying and monitoring for the
presence of jaguars. Covering a 200 square kilometre (77 square mile) area, these efforts include the use of 150
cameras (approximately one to three camera sets for every 2.6 square kilometres (1.0 square mile)), trail plots and
specially trained dogs with their handlers. Monitoring will commence before any significant surface work begins at
Rosemont and continue for up to five years after the life of the project.
In issuing its final biological opinion in 2016, the US Fish and Wildlife Service noted that the Rosemont project would
not jeopardize the existence of 12 species living on or near the proposed mine site.

HEALTHY AIR
Use of leading-edge technology will help control dust and air emissions and ensure compliance with all federal and
state air quality standards for particulates and air pollutants. Our air quality permit issued by the Arizona Department
of Environmental Quality in 2013 and upheld by the Arizona Court of Appeals in 2016 includes enforceable limits for
regulated air pollutants, equipment testing and opacity measurements, as well as extensive monitoring and
reporting requirements.
We plan to use haul trucks and mining equipment that meet the highest emissions standards (Tier IV) and high-
efficiency dust collectors at process plant emissions points. We also plan to pave access and plant roads, enforce
speed limits, transport employees to the mine in natural-gas buses and conduct concurrent reclamation of perimeter
buttresses and disturbed areas in order to minimize dust and protect air quality.
Read about our updated plan for maintaining dark skies that will reduce lighting output by 70%.

CSR Performance Data
BASIS OF REPORTING
All financial information is presented in US dollars except where otherwise indicated. All operating data is reported
using the metric system. Some metrics are reported on both an absolute basis and an intensity basis against
kilotonnes of metal processed. Safety data frequency rates are measured per 200,000 hours worked.
DATA MEASUREMENT TECHNIQUES

Data is measured or estimated, and operations are asked to explain significant deviations in year-over-year trends.
The performance data is reported at a mix of operational and corporate levels. Data is checked and approved at the
site level, and also reviewed for consistency by the corporate data collection team.
We provide safety and environmental incident definitions so that all operations report incidents consistently. We
calculate greenhouse gas (GHG) emissions using published factors for emissions.
Most of the performance data for water and energy is metered. We purchase most of our electricity from local grids.
Utility grid statistics are therefore used to compile purchased electricity-related GHG numbers. We generate
electricity at some of our project sites (such as Constancia and Reed) and this energy is reflected in fuel
consumption, while GHG numbers are calculated based on conversion factors.
Data for the indicators is collected and compiled using information submitted by each site on a standard template.
We provide instruction and criteria for GRI G4 and Towards Sustainable Mining (TSM), and also supply a GHG
emissions worksheet developed by the Mining Association of Canada (MAC).
KEY PERFORMANCE DATA
ECONOMIC
2016 2015 2014 2013
Direct economic value generated and

distributed (in $ millions) (EC1)
Profit (loss) before tax $ 5.6 $ (331.4) $ 13.9 $ (53.7)
Revenues $ 1,128.7 $ 923.1 $ 507.5 $ 500.9
Operating costs
Canada 358.9 (408.5) (428.6) (399.7)
US 0.6 (5.7) (7.6) (1.8)
Peru 298.5 (186.0) (8.7) (9.7)
Chile 2.2 (0.5) (1.9) (2.7)
Colombia 0.0 (0.4) (0.8) (3.9)
Total $ 660.2 $ (601.1) $ (447.6) $ (417.8)

2016 2015 2014 2013
Employee wages and benefits

Canada 147.2 157.1 156.5 160.8
US 0.6 9.3 4.6 1.1
Peru 27.5 22.4 20.6 15.7
Chile 2.2 0.0 0.0 1.2
Colombia 0.0 0.2 0.2 1.2
Total $ 177.5 $ 189.0 $ 181.9 $ 179.9
Payments to government
Taxes paid
Canada 6.6 6.1 (21.1) 5.6
US 0.0 0.0 0.1 0.0
Peru 38.9 28.0 5.8 1.5
Chile 0.0 0.0 0.0 0.0
Colombia 0.0 0.0 0.0 0.0
Total $ 45.5 $ 34.1 $ (15.2) $ 7.1
Municipal taxes and grants

Canada 6.8 6.7 7.8 7.6
US 0.0 0.1 0.5 0.7
Peru 0.0 0.0 0.0 0.0
Chile 0.0 0.0 0.0 0.0
Colombia 0.0 0.0 0.0 0.0
Total $ 6.8 $ 6.8 $ 8.3 $ 8.3
Penalties and interest paid

Canada 0.0 0.1 0.0 0.0
US 0.0 0.0 0.3 0.0
Peru 0.3 0.0 0.2 0.0
Chile 0.0 0.0 0.0 0.0
Colombia 0.0 0.0 0.0 0.0
Total $ 0.3 $ 0.1 $ 0.5 $ 0.0

2016 2015 2014 2013
Payments to providers of capital

Dividends paid $ 3.6 $ 3.6 $ 3.8 $ 18.5
Interest payments made to providers of loans $ 126.5 $ 108.6 $ 82.1 $ 56.8
Financing fees paid

Canada1 49.4 1.3 0.9 2.8
2
Peru 20.1 1.2 4.6 0.0
Total $ 69.5 $ 2.5 $ 5.5 $ 2.8
Other interest paid

Canada 0.0 0.0 0.0 0.0
Peru 0.0 0.0 0.0 0.0
Total $ 0.0 $ 0.0 $ 0.0 $ 0.0
Capital expenditures – cash flow basis $ 192.8 $ 490.6 $ 890.9 $ 878.7

Cash and cash equivalents $ 146.9 $ 53.9 $ 178.7 $ 593.7
Payments – Local communities for land use

(in $000s)
Canada 0.0 0.0 0.0 0.0
US 0.0 0.0 0.0 0.0
Peru 1,829.3 579.5 1,684.5 10,647.1
Total land use payments $ 1,829.3 $ 579.5 $ 1,684.5 $ 10,647.1
Public benefit
Community investment and charitable
donations (in $000s)
Canada 345.1 307.1 602.8 650.6
US 147.1 63.5 212.9 48.4
Peru 3,738.3 2,435.7 3,103.0 3,952.0
Chile 0.0 0.0 0.0 0.0
Colombia 0.0 0.0 0.0 0.0
Total community investments and donations3 $ 4,230.5 $ 2,806.3 $ 3,918.7 $ 4,651.0
Resettlement investment (Peru) (in $000s) $ 1,081.5 $ 957.5 $ 7,857.0 $ 16,429.9

2016 2015 2014 2013
Production (contained metal in concentrate)

Copper (000 tonnes) 174.5 147.3 37.6 29.9
Zinc (000 tonnes) 110.6 102.9 82.5 86.5
Gold (000 troy ounces) 114.3 100.2 73.4 79.2
Silver (000 troy ounces) 3,755.9 2,791.5 745.9 772.5
Metal production
Zinc metal (000 tonnes) 102.6 101.9 105.1 96.3
1. This increase is mostly the result of a call premium paid to facilitate the early redemption of our senior unsecured notes.
2. This increase relates to the payments of withholding taxes on loans and other revolver facility fees.
3. Political donations are included in this total; however, in accordance with Hudbay policy, political donations were $0.

EMPLOYEES
2016 2015 2014 2013
Total workforce (G4-10)

Number of full-time employees
MBU 1,319 1,399 1,391 1,373
Ontario 67 68 61 52
Arizona 40 50 34 N/ap
Peru 230 183 174 157
Colombia 0 0 0 1
Chile 0 0 0 1
Total full-time employees 1,656 1,700 1,668 1,594
Employment1
Number of part-time employees
MBU 10 2 14
Ontario 0 0 0
N/av – See
Arizona 2 2 2
total below
Peru 0 0 0
Chile 0 0 0
Total part-time employees 12 4 18 52
Number of contract (term) employees

MBU 13 7 18
Ontario 1 5 1
N/av – See
Arizona 0 0 0
total below
Peru 363 187 138
Chile 8 1 0
Total contract employees 385 200 158 23

2016 2015 2014 2013
Number of co-op and summer students hired

MBU 21 40 41
Ontario 2 3 2
N/av – See
Arizona 0 2 0
total below
Peru 8 12 6
Chile 0 0 0
Total co-op/summer students 31 57 49 43
Number of employees represented by

collective bargaining agreements (G4-11) 1,1211 1,053 1,091 1,047
Percentage of full-time employees

represented by trade unions 67.7% 61.9% 65.4% 65.7%
Operational changes (LA4)

Minimum number of weeks provided before
operational changes (MBU only) 2 2 2 2
Negotiated into collective agreements

(MBU only) Yes Yes Yes Yes
Number of strikes or lockouts exceeding one

week (MM4) 0 1 0 0
Employee turnover (LA1)

Region
MBU 201 206 118 N/av
Corporate 11 5 7 N/av
ABU 16 9 1 N/av
Peru 64 32 53 N/av
Chile 0 0 0 N/av
Total 292 252 179 N/av

2016 2015 2014 2013
Age distribution
<30 20.2% 23.4% 18.4% N/av
30–50 39.0% 40.5% 50.3% N/av
>50 40.8% 36.1% 31.8% N/av
Gender
Male 80.1% 75.4% 82.7% N/av
Female 19.9% 24.6% 17.9% N/av
Voluntary turnover rate (Hudbay total) 13.0% 11.4% 7.4% 4.3%
Involuntary turnover rate (Hudbay total) 4.6% 3.6% 3.4% 4.1%
New employee hires

Region
MBU 141 221 155 N/av
Corporate 3 12 7 N/av
ABU 3 23 36 N/av
Peru 280 160 183 N/av
Chile 0 0 0 N/av
Total 427 416 381 N/av
Age distribution
<30 32.8% 40.6% 22.6% N/av
30–50 54.6% 47.4% 64.0% N/av
>50 12.6% 12.0% 13.6% N/av
Gender
Male 83.4% 79.3% 82.9% N/av
Female 16.6% 20.7% 17.3% N/av
Net number of full-time employees added

(decreased)
Canada (81) 15 27 79
US (10) 8 32 0
Peru 47 9 17 26
Colombia 0 0 (1) (14)
Chile 0 0 (1) (13)
Total (44) 32 74 78
Senior management hired from local

community (EC6) 9 2 N/av N/av

2016 2015 2014 2013
Number of contractor full-time equivalent

staff (G4-10)
Manitoba 175 274 245 316
Peru 2,974 4,337 9,595 6,438
Arizona 15 55 N/ap N/ap
Other 13 4 54 25
Person-hours of work (including contractors)

(LA1)
North America 3,073,646 3,245,882 3,359,663 3,245,625
South America 7,589,501 9,907,705 20,458,806 13,781,606
Total person-hours 10,663,147 13,158,587 23,818,469 17,027,231
Employees receiving regular performance

and career development reviews (LA11)
Percentage reviewed 20% 41% 22% 26%
Hudbay total workforce age distribution

(LA12)
<30 14.2% 13.0% 13.8% 11.4%
30–50 53.0% 47.9% 47.8% 47.4%
>50 32.2% 39.6% 36.6% 41.2%

2016 2015 2014 2013
Composition of governance bodies and

breakdown of employees
Workforce diversity
Female (Hudbay)
MBU 189 187 182 N/av
Ontario 32 32 27 N/av
Arizona 17 24 15 N/av
New York 0 0 0 N/av
Peru 60 28 35 N/av
Chile N/ap N/ap 0 N/av
Percentage of total workforce that is female 18% 16% 16% 17%
Aboriginal (MBU only) N/av2 13% 12% 13%
2
Disabled (MBU only) N/av 5% 6% 5%
Visible minorities (MBU only) N/av2 6% 6% 5%
Composition of executive management and

corporate governance bodies
Board of Directors (ratio male to female) 4:1 4:1 10:1 9:1
Age distribution
<30 0% 0% 0% 0%
30–50 0% 0% 10% 10%
>50 100% 100% 90% 90%
Executive management (ratio male to female) 5.5:1 5.5:1 10:1 10:1
Age distribution
<30 0% 0% 0% 0%
30–50 53% 64% 72% 64%
>50 46% 36% 27% 36%
Ratio of annual compensation of highest

paid individual to mean total compensation
(G4-54)
Canada (Manitoba Business Unit, excluding
Corporate office)3 4.9:1 6.5:1 6.1:1 8.9:1
4
Canada (including Corporate office) 24.1:1 16.4:1 29.8:1 23.5:1
Peru 9.2:1 10.0:1 9.5:1 11.3:1
United States (Arizona Business Unit) 4.3:1 4.2:1 3.1:1 N/av

2016 2015 2014 2013
Workforce represented in formal joint

management-worker Health and Safety
Committees (LA5)
Percentage represented 100% 100% 100% 100%
Health and safety performance (per

200,000 hours worked, except where noted)
(LA6)
Lost time accident frequency (LTA)
Manitoba 1.1 1.0 1.0 0.7
Manitoba contractors 0.0 0.7 0.8 0.3
Peru 0.1 0.7 0.0 0.0
Peru contractors 0.0 0.1 0.0 0.2
Arizona 0.0 0.0 N/ap N/ap
Arizona contractors 0.0 0.0 N/ap N/ap
North America (not including MBU and ABU) 0.0 0.0 0.0 0.0
North America contractors (not including
MBU and ABU) 0.0 0.0 0.0 0.0
South America (not including Peru) 0.0 0.0 0.0 0.0
South America contractors (not including
Peru) 0.0 0.0 0.0 44.1
Total 0.3 0.3 0.1 0.4
Lost time accident severity (SEV)

Manitoba 37.3 35.2 36.0 34.4
Peru 2.0 22.0 0.0 0.0
MBU and ABU) 0.0 0.0 0.0 0.0
Peru) 0.0 0.0 0.0 163.0
Total 9.3 11.4 4.7 11.0

2016 2015 2014 2013
Restricted work case frequency (RWC)

Manitoba 1.1 1.8 2.2 1.6
Peru 0.0 0.2 0.0 0.0
MBU and ABU) 0.0 0.0 0.0 0.0
Peru) 0.0 0.0 0.0 0.0
Total 0.3 0.4 0.3 0.6
Medical aid frequency (MA)

Manitoba 11.8 11.0 12.8 12.1
Peru 0.0 2.3 0.0 0.6
MBU and ABU) 0.0 0.0 2.1 0.0
Peru) 0.0 0.0 0.0 70.5
Total 3.0 3.0 2.1 3.0

2016 2015 2014 2013
First aid frequency (FA)

Manitoba 22.6 22.1 28.5 26.0
Peru 0.9 4.8 0.4 1.8
MBU and ABU) 0.0 0.0 8.3 0.0
Peru) 0.0 0.0 0.0 136.6
Total 5.7 5.2 4.4 6.2
Fatality (number) 0 0 0 0
Absentee rate (as a % of hours scheduled to
be worked) N/av N/av N/av N/av
Reportable occurrences (defined as EHS
incidents required by Hudbay policy to be
reported to our Board of Directors)5 79 141 81 127

BENEFITS
Corporate MBU
Full time Part time Full time
Life insurance Yes No Yes

Health care Yes No Yes
Disability and invalidity coverage Yes No Yes
Parental leave Yes No Yes
Retirement provision Yes No Yes
Stock ownership Yes No Yes
Other – Critical illness insurance Yes No Management only
Other – Accidental death and
dismemberment insurance Yes No Yes
Peru ABU
Full time Part time Full time Part time
Life insurance Yes N/ap Yes No

Health care Yes N/ap Yes No
Disability and invalidity coverage Yes N/ap Yes No
Parental leave Yes N/ap 0 0
Retirement provision Yes N/ap Yes (401k) No
Stock ownership Yes N/ap Yes No
Other – Critical illness insurance Yes N/ap No No
Other – Accidental death and
dismemberment insurance Yes N/ap Yes No
1. Includes a union covering 90 employees organized in Peru in October, but negotiations did not begin until 2017.
2. This information is not made available until June; therefore, we are a year behind in our public reporting.
3. Drop in ratio is due to the time period in 2016 when there was no VP of the Manitoba Business Unit.
4. Increase in ratio is due to the higher share price and the vesting of bonuses in 2016.
5. In Q4 2016, we adopted revised Board reporting criteria that reduced the number of incidents reported to the Board in order to better focus discussion.

SOCIETY
2016 2015 2014 2013
Total number of incidents of discrimination

(and actions taken) (HR3) 11 0 0 0
Land use disputes (MM6) 3 0 3 2
Resettlements (MM9)
Number of households 0 36 0 0
Number of individuals 0 150 0 0
Employees trained in anti-corruption

policies (SO4)
Number 66 360 182 336
Percentage of workforce 4% 21% 10% 21%
Percentage of Board and management given
training 100% 91% N/av N/av
Employees that anti-corruption policies have

been communicated to
N/av – See
Number – management2 534 229 412 above
N/av – See
Percentage 100% 98% 0% above
N/av – See
Number – non-management 418 560 485 above
N/av – See
Percentage 27% 100% 0% above
Governance body members that anti-

corruption policies have been
communicated to
Number 10 10 10 N/av
Percentage 100% 100% 100% N/av
Governance body members that received

training on anti-corruption
Number 10 10 10 N/av
Percentage 100% 100% 100% N/av

2016 2015 2014 2013
Average hours of training (Peru and Arizona

Business Units only) (LA9)
Males in management 6.86 19.65 N/av N/av
Females in management 9.36 50.17 N/av N/av
Males in non-management 9.59 51.86 N/av N/av
Females in non-management 14.11 36.71 N/av N/av
Security practices (security personnel

training) (HR7)
Hudbay security personnel trained in human
rights policies and procedures
N/av – Not
previously
Number 14 15 15 reported
N/av – Not
previously
Percentage 100% 98% 100% reported
Contractor security personnel trained in
human rights policies and procedures
N/av – Not
previously
Number 7 175 158 reported
N/av – Not
previously
Percentage 100% 99% 92% reported
Value of fines or sanctions for non-
compliance with laws and regulations (SO8) $ 0 $ 5,000 $ 3,352 $ 1,277
Grievances about impacts on society (SO11)

Number filed through formal grievance
mechanisms 32 67 78 110
Number addressed during reporting period 32 67 78 110
Number resolved during reporting period 12 65 67 103
Number filed prior to the reporting period
that were resolved during the reporting
period 3 6 32 N/av
Number of other concerns 78 704
Environment (EN34) 1 4 N/av – See above
Labour and commercial practices (LA16) 24 54 N/av – See above
Resettlement/livelihood 1 2 N/av – See above
Human rights 1 1 N/av – See above
Other 4 6 N/av – See above

2016 2015 2014 2013
Closure plans (MM10)

Total number of operations 5 7 8 N/av
Number of company operations that have
closure plans 8 10 10 6
Percentage of total operations that have
closure plans 160% 125% 125% 100%
Number of advanced exploration projects that
have closure plans 1 0 1 4
Percentage of advanced exploration projects
that have closure plans 100% N/ap 100% 100%
Overall financial provision representing the
present value of future cash flows relating to
estimated closure costs per Canadian
generally accepted accounting principles
(in $000s) $ 177,296 $ 147,027 $ 185,395 $ 141,566
1. This incident was filed in 2015 by a former employee alleging discrimination based on gender. The case is still ongoing.
2. Added to reflect G4 reporting guidelines. SO4 was not broken down into these subsections in reporting years prior to 2014; therefore, data for the previous year is not available
(N/av).

ENVIRONMENT
2016 2015 2014 2013
Direct energy consumption by primary

energy source (terajoules) (EN3)
Heavy oil 0 0 0 0
Propane 579 629 700 580
Natural gas 0 0 0 0
Diesel 1,941 2,034 1,993 1,346
Light oil 0 0 4 6
Gasoline 14 11 12 11
Biofuel 0 0 0 0
Ethanol 0 0 0 0
Hydrogen 0 0 0 0
Other 0 1 0 0
Total 2,533 2,675 2,709 1,943
Indirect energy consumption by primary

energy source (terajoules)
Total electricity consumed 5,263 4,932 3,322 3,048
Indirect energy sold/credits (terajoules)
Electricity 0.5 0.4 N/av N/av
Total indirect energy consumed by

organization (terajoules) 5,262 4,936 N/av N/av
Energy intensity (terajoules per kilotonne

of metal in concentrate) (EN5) 27.3 30.9 50.2 42.9
Total direct and indirect greenhouse gas

emissions (kilotonnes of CO2-equivalent)
Direct carbon dioxide emissions (EN15) 170.96 188.08 182.28 133.26

Indirect carbon dioxide emissions (EN16) 322.31 277.80 6.91 4.84
Total 349.66 455.30 189.19 138.10
GHG intensity (EN18) 1.23 1.82 1.57 1.19

2016 2015 2014 2013
NOx, SOx and other significant air

emissions (in kilotonnes) (EN21)
Sulphur dioxide emissions 0.0 0.0 0.0 0.0
Particulate 0.44 0.16 0.17 0.16
Total water withdrawal (000 cubic metres)

(EN8)
Surface water 10,632 11,549 11,287 10,789
Ground water 3,531 2,698 930 441
Rainwater collected directly and stored by the
organization 7,143 7,168 4,048 N/av
Waste water from another organization 0 0 N/av N/av
Municipal water supplies 0 0 1 0.01
Total water withdrawal 21,306 21,415 16,266 11,230
Percentage and total volume of water

recycled and reused (EN10)
Total volume (megalitres) 56,291.741 16,944.37 N/av N/av
Percentage 50.58% 7.91% N/av N/av
Total water discharged (000 cubic metres)

(EN22)
To Flin Flon Creek/Ross Lake/Schist Lake 14,353 10,546 10,819 12,418
To Anderson Creek/Wekusko Lake 8,025 4,594 3,939 4,180
To Woosey Creek/Morgan Lake 2,142 1,106 1,184 1,123
Herblet Lake 926 N/ap N/ap N/ap
Town of Snow Lake Sewer 0 0 8 N/ap
To ground 247 217 187 35
To land (irrigation using treated water in
Peru) 0 0 0 139
To Chilloroya River (Peru) 188 2,623 737 N/ap
Water treated (000 cubic metres) 25,911 19,086 19,887 19,867
Total number of significant spills (EN24) 92 9 12 5

Volume (m3) 516.5 382.0 103.0 3.8
Hazardous waste disposed of at external

facility (tonnes) (EN25) 1,520.3 1,508.5 658.5 522.3

2016 2015 2014 2013
Total waste (tonnes) (MM3)

Overburden 2,053,659.9 N/av N/av N/av
Waste rock 51,426,208.8 42,764,760.0 N/av N/av
Tailings 28,968,944.0 24,780,081.6 N/av N/av
Number of fines or sanctions for non-

compliance with environmental laws and
regulations (EN29) 0 0 0 0
Land use (hectares) – Mineral tenure

(controlled) (MM1)
Manitoba 122,639.4 137,832.4 135,068.4 226,679.4
Saskatchewan 133,339.1 135,352.1 139,316.2 136,887.5
Ontario 0.0 0.0 0.0 0.0
Yukon 5,823.4 5,823.4 5,823.4 5,823.4
Nunavut 21.0 21.0 21.0 21.0
Total Canada 261,822.9 279,028.9 280,229.0 369,411.2
New York 0.0 0.0 31,532.3 31,570.2

Michigan 0.0 0.0 0.0 3,161.8
Arizona 7,284.0 7,284.0 0.0 N/ap
Total USA 7,284.0 7,284.0 31,532.3 34,732.0
Chile 68,826.0 1,531.0 1,531.0 1,531.0

Colombia 0.0 0.0 0.0 5,210.8
Peru 5,187.0 43,669.5 0.0 26,932.5
Total South/Central America 74,013.0 45,200.5 1,531.0 33,674.3
Total 343,119.8 331,513.4 313,292.3 437,817.5
Land use (hectares) – Surface tenure

(disturbed)
Manitoba 7,314.1 7,314.1 6,130.3 6,115.8
Saskatchewan 531.4 535.2 744.5 744.5
Ontario 0.0 0.0 0.0 0.0
Yukon 120.7 120.7 120.7 120.7
Nunavut 0.0 0.0 0.0 0.0
Total Canada 7,966.2 7,969.9 6,995.5 6,981.0
New York 0.0 0.0 57.7 57.7

Michigan 0.0 0.0 0.0 571.0

2016 2015 2014 2013
Arizona 0.0 0.0 0.0 N/ap
Total USA 0.0 0.0 57.7 628.7
Chile 0.3 0.0 0.0 0.0

Colombia 0.0 0.0 0.0 0.0
Peru 1,568.4 5,187.0 0.0 4,225.8
Total South/Central America 1,568.7 5,187.0 0.0 4,225.8
Total 9,534.8 13,156.9 7,053.2 11,835.5
Percent land used vs. controlled 2.8% 4.0% 2.3% 2.7%
Sites requiring biodiversity management

plans (MM2/EN12)
Number of sites legally requiring plans 1 1 0 0
Percentage of sites with legally required
plans in place 100% 100% N/ap N/ap
Number of sites with voluntary plans in place 1 1 1 2
Habitats protected or restored (hectares)

(EN13)
Protected 0 0 0 0
Restored3 51.93 0.62 2 22.8
4
Partnerships exist Yes Yes N/av N/av
Status at close of reporting period Monitoring Monitoring N/av N/av
IUCN Red List species and National

Conservation List species (EN14)
Critically endangered 3 3 N/av N/av
Endangered 8 8 N/av N/av
Vulnerable 12 14 N/av N/av
Near threatened 11 9 N/av N/av
Least concern 6 6 N/av N/av
1. Increase is due to an increase in the amount of water available for reuse.
2. Of these nine spills, eight were in Manitoba and one was in Peru. In Manitoba, there were three chemical spills, one oil spill, three waste spills, and one “other”. There were no major
impacts to the environment from these spills. In Peru, the spill was sludge from the open pit mine, which contaminated a water body with sediment and sludge.
3. In Peru, we have a revegetation program. Revegetation was conducted using three types of native grass seeds. The 2015 revegetation program was monitored and we observed a
recovery of original biodiversity, achieving landscape integration in 95% of the intervened area. These areas are in the monitoring phase.
4. In Peru, we are partnered with UB Constancia, Hudbay Property – Taludes del DM3.

2016 Targets and Achievements
Target Achievement Details
HEALTH AND SAFETY
Improve on our current three-year average Not achieved See Employee Performance Data.
lost time accident severity of 8.3
Improve on our three-year total recordable Not achieved As of December 31, 2016, our three-year
injury frequency average of 3.2 average total recordable injury
frequency was 3.6.
Implement a Visible Felt Leadership program Achieved See Safety Accountability Starts at the
for management Top.
Sustain our focus on learning from severe and Achieved See Our Approach to Health and Safety.
high-potential incidents by ensuring uniform
application of incident criteria, investigation
process and corrective action follow-up at all
business units
COMMUNITY
Implement a program to achieve company- Not achieved Delayed waiting for a Spanish version of
wide exposure to the human rights the human rights video.
introductory video being developed with MAC
and the Canadian government, and connect it
to Hudbay policies and standards
Complete gap analysis for recently approved Partially Carried out in Peru, but not yet in
Community Giving and Investment Standard achieved Manitoba.
and Local Procurement and Employment
Standard at each operating location and
identify business unit defined action plans
Achieve Canadian Council for Aboriginal Achieved See Benchmarking Hudbay’s Efforts in
Business PAR (Progressive Aboriginal Aboriginal Inclusion.
Relations) Bronze level or higher at our
Manitoba Business Unit

Target Achievement Details
ENVIRONMENT
Achieve a 1% greenhouse gas emissions Achieved See Environment – Manitoba.

intensity reduction in Manitoba
Achieve a 1% fresh water consumption Achieved See Environment – Manitoba.

intensity reduction in Manitoba
Set Constancia environmental benchmark and Achieved See Environment – Peru.

improvement targets for 2017
GOVERNANCE
Conduct anti-bribery and anti-corruption Achieved See Business Conduct.

refresher training for board members
Adopt Shareholder Engagement Policy Achieved See Stakeholder Engagement.

encouraging shareholders to communicate
directly with the Board of Directors
Achieve ISO 14001 and OHSAS 18001 Achieved See CSR Governance.

management system certification for the
Constancia operation
FINANCIAL EXCELLENCE/GROWTH TARGETS
Through efficiency improvements, combined Achieved See Business and Financial Review.
with cost containment efforts, achieve 2016
capital expenditure and operating cost
reductions of more than $100 million,
compared to 2016 guidance, while
maintaining or improving on production
guidance
Enhance Hudbay’s liquidity position in the 2016 objective See Business and Financial Review.
current commodity price environment by achieved in
consolidating the lender groups, and first quarter of
restructure Hudbay’s two secured credit 2017
facilities
Build on the 2015 technical and permitting Achieved

work at the Rosemont project to complete the
Definitive Feasibility Study and continue
progress on the outstanding permits

2017 Targets
HEALTH AND SAFETY
Improve on our current three-year average lost time accident severity of 7.5
Improve on our three-year total recordable injury frequency average of 3.1
Progress our focus on fatality prevention by implementing our Critical Control Framework at each site
Improve our performance benchmarking by moving to ICMM classification and boundary criteria
COMMUNITY
Implement a program to achieve company-wide exposure to the human rights introductory video being
developed with MAC and the Canadian government, and connect it to Hudbay policies and standards
ENVIRONMENT
Achieve a 1% greenhouse gas emissions intensity reduction in Manitoba
Achieve a 1% fresh water consumption intensity reduction in Manitoba
Achieve a 5% greenhouse gas emissions intensity reduction at camp in Peru
Achieve a 5% fresh water consumption intensity reduction at camp in Peru
GOVERNANCE
Adopt new compliance management system to facilitate employee training on policies and procedures
Adopt and roll out new Supplier Code of Conduct and Ethics
Conduct organizational review intended to ensure Hudbay is well positioned to achieve its growth objectives
FINANCIAL EXCELLENCE/GROWTH TARGETS

Continue to pursue efficiency improvements in our operations to sustain cost reductions achieved in 2016 and
generate incremental free cash flow and increase net asset value
Advance high-return in-house brownfield opportunities to increase throughput from the Lalor mine and related
milling facilities, incrementally adding zinc and gold production in the near and medium term, respectively
Deliver on plans to advance the development of the high-grade Pampacancha deposit so that it can start to be
mined late in 2018
Advance permitting and technical work at the Rosemont project
Utilize free cash flow generation to reduce debt and further reduce our cost of capital
Continue to evaluate exploration and acquisition opportunities that meet our criteria described above, and
pursue those opportunities that we determine to be in the best interest of the company and our stakeholders

GRI Index
STRATEGY AND ANALYSIS
External
General Standard Disclosures Assurance
G4-1 Statement from the most senior decision-maker of the No

organization
Our Company > CEO Message
ORGANIZATIONAL PROFILE
External
G4-3 Name of the organization No
Our Company
G4-4 Primary brands, products and services No
Our Company
Business and Financial Review > Strategy
Business and Financial Review > Operations
CSR Approach > Responsible Supply Chain
G4-5 Location of the organization’s headquarters No
Our Company

External
G4-6 Number of countries where the organization operates, and No

names of countries where the organization has significant
operations or that are specifically relevant to the sustainability
topics covered in the report
Our Company
G4-7 Nature of ownership and legal form No
Our Company
Website > About Us > At-a-Glance
Annual Information Form
G4-8 Markets served No

Story > Dealing with the Inevitable: Managing Price Cyclicality
G4-9 Scale of the organization No
Our Company
Business and Financial Review > Financials
G4-10 Employee/workforce details No
Workforce details are not currently provided by gender. There

were no significant variations in employment numbers.
G4-11 Percentage of total employees covered by collective No

bargaining agreements
Our People > Our Approach

External
G4-12 Describe the organization’s supply chain No
G4-13 Significant changes during the reporting period regarding the No

organization’s size, structure, ownership or supply chain
Our Company
G4-14 Whether and how the precautionary approach or principle is No

addressed by the organization
CSR Approach > CSR Governance
G4-15 Externally developed economic, environmental and social No

charters, principles or other initiatives to which the
organization subscribes or which it endorses
G4-16 Memberships of associations and national or international No

advocacy organizations

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
External
G4-17 Entities included in the organization’s consolidated financial No

statements
About This Report

G4-18 Process for defining report content No
CSR Approach > Materiality

2014 Annual and CSR Report
G4-19 Material aspects identified in the process for defining report No

content
G4-20 Aspect boundary within the organization No

CSR Performance Data > GRI Index
G4-21 Aspect boundary outside of the organization No

CSR Performance Data > GRI Index
G4-22 Effect of any restatement of information in previous reports No
There are no restatements of information from previous reports.

External
G4-23 Significant changes from previous reporting in scope of No

priorities
There are no significant changes from previous reporting in scope

of priorities.
STAKEHOLDER ENGAGEMENT
External
G4-24 List of stakeholder groups No
CSR Approach > Stakeholder Engagement
G4-25 Basis for identifying and selecting stakeholders No
Stakeholders are defined as entities or individuals that can

reasonably be expected to be significantly affected by our
activities, and whose actions can reasonably be expected to affect
our ability to successfully implement our strategies and achieve
our objectives.
G4-26 Approach to stakeholder engagement No

Our People > Manitoba
Our People > Peru
Our People > Arizona
Social Impact > Story > Benchmarking Hudbay’s Efforts in
Social Impact > Our Approach
Social Impact > Manitoba
Social Impact > Peru
Social Impact > Arizona

External
G4-27 Topics raised through stakeholder engagement and response No

Our People > Manitoba
Our People > Peru
Our People > Arizona
REPORT PROFILE
External
G4-28 Reporting period No
About This Report
G4-29 Date of most recent report No
About This Report
G4-30 Reporting cycle No
About This Report
G4-31 Contact No
Contact Us

External
G4-32 In accordance option No
About This Report
G4-33 External assurance policy No
About This Report
Our external report is not externally assured, and we do not have

a policy around external assurance. The financial data comprising
EC1 is externally assured through the auditing of our Financials.
GOVERNANCE
External
G4-34 Governance structure No

G4-37 Process for consultation between stakeholders and highest No

governance body on economic, social and environmental topics
Our Company > Business Conduct

CSR Approach > Human Rights and Security
Website > Governance (Corporate Governance Guidelines)
G4-38 Composition of the highest governance body No
Our Company > Corporate Governance

Our Company > Management Team

External
G4-39 Indicate whether the Chair of the highest governance body is No

also an executive officer
G4-40 Nomination and selection process for the highest governance No

body and its committees

G4-41 Process for the highest governance body to ensure conflicts of No

interest are avoided and managed

G4-44 Process for evaluation of the highest governance body’s No

performance
G4-45 Highest governance body’s role in the identification of No

economic, social and environmental impacts, risks and
opportunities

G4-47 Frequency of the highest governance body’s review of No

economic, environmental and social impacts, risks and
opportunities

External
G4-49 Process for communicating critical concerns to the highest No

governance body

G4-51 Remuneration policies for the highest governance body and No

senior executives

G4-54 Ratio of the annual total compensation for the organization’s No

highest paid individual in each country of significant operation
to the median annual total compensation for all employees
ETHICS AND INTEGRITY
External
G4-56 Organization’s values, principles, standards and norms of No

behaviour

Environment > Our Approach
Website > About Us
Website > Code of Business Conduct and Ethics

ECONOMIC
External Impact
Specific Standard Disclosures Assurance Boundaries
Aspect: Economic Performance
DMA Disclosure of Management Approach No 1, 2, 3, 5, 6,

7, 8, 9, 10,
Our Company > CEO Message 11
Our Company > Risk Management
Business and Financial Review > Strategy
G4-EC1 Direct economic value generated and distributed Yes

Social Impact
G4-EC2 Financial implications and other risks and opportunities No

for the organization’s activities due to climate change
CDP Website
G4-EC3 Coverage of the organization’s defined benefit plan No

obligations

External Impact
Aspect: Indirect Economic Impacts

9, 10, 11
Social Impact
Note: We re-evaluate our management approach every three

years as part of our materiality review process, which was
last conducted in 2014.
G4-EC7 Development and impact of infrastructure investments No

and services supported
Story > A Foundation for Rewarding Community

Relationships
G4-EC8 Significant indirect economic impacts, including the No

extent of impacts

Social Impact
Aspect: Procurement Practices
DMA Disclosure of Management Approach No 1, 3, 4, 9,

10, 11

External Impact
G4-EC9 Proportion of spending on local suppliers at significant No

locations of operation

ENVIRONMENTAL
External Impact
Aspect: Water
DMA Disclosure of Management Approach No 3, 6, 8, 11

Environment > Manitoba
Environment > Peru
Environment > Arizona
CDP Website

G4-EN8 Total water withdrawal by source No
G4-EN10 Percentage and total volume of water recycled and reused No

External Impact
Aspect: Biodiversity

11
Environment > Manitoba
Environment > Peru
Environment > Arizona
Story > Managing Our Impact and Supporting Biodiversity
G4-EN13 Habitats protected or restored No

MM1 Amount of land disturbed or rehabilitated No
MM2 The number and percentage of total sites identified as No

requiring biodiversity management plans according to
stated criteria, and the number (percentage) of those
sites with plans in place
G4-EN14 Total number of IUCN Red List species and national No

conservation list species with habitats in areas affected by
operations, by level of extinction risk

External Impact
Aspect: Effluents and Waste

8, 10, 11

G4-EN24 Total number and volume of significant spills No
MM3 Total amount of overburden, rock, tailings and sludges No

and their associated risks
Aspect: Environmental Grievance Mechanisms

11

G4-EN34 Number of grievances about environmental impacts filed, No

addressed and resolved through formal grievance
mechanisms

Hudbay reports on the main topics raised from grievances

and has not segmented those that have been filed,
addressed and/or resolved based specifically on
environmental impacts.

SOCIAL: LABOUR PRACTICES AND DECENT WORK
External Impact
Aspect: Employment
Our People

G4-LA1 Total number and rates of new employee hires and No

employee turnover by age group, gender and region
G4-LA2 Benefits provided to full-time employees that are not No

provided to temporary or part-time employees, by
significant locations of operation
Aspect: Labour/Management Relations
Our People

G4-LA4 Minimum notice periods regarding operational changes, No

including whether these are specified in collective
agreements


External Impact
MM4 Number of strikes and lock-outs exceeding one week’s No

duration, by country
Aspect: Occupational Health and Safety

7, 8, 9, 10,
Our People > Our Approach 11
Website > Environmental Health and Safety Policy

G4-LA5 Percentage of total workforce represented in formal joint No

management–worker health and safety committees that
help monitor and advise on occupational health and safety
programs
G4-LA6 Type of injury and rates of injury, occupational diseases, No

lost days and absenteeism, and total number of work-
related fatalities, by region and by gender
Our People
Hudbay does not currently track gender-specific data

relating to this disclosure as it is not applicable to our
company.

SOCIAL: HUMAN RIGHTS
External Impact
Aspect: Non-Discrimination
DMA Disclosure of Management Approach No 1, 5, 11


G4-HR3 Total number of incidents of discrimination and corrective No

actions taken
Aspect: Freedom of Association and Collective Bargaining
DMA Disclosure of Management Approach No 1, 5, 8

G4-HR4 Operations and suppliers identified in which the right to No

exercise freedom of association and collective bargaining
may be violated or at significant risk, and measures taken
to support these rights

External Impact
Aspect: Security Practices

G4-HR7 Percentage of security personnel trained in the No

organization’s human rights policies or procedures that
are relevant to operations
Aspect: Indigenous Rights

11

G4-HR8 Total number of incidents of violations involving rights of No

indigenous peoples and actions taken
Note: There were 0 violations in 2015.
MM5 Total number of operations taking place in or adjacent to No

indigenous peoples’ territories, and number and
percentage of operations or sites where there are formal
agreements with indigenous peoples’ communities

External Impact
Aspect: Human Rights Grievance Mechanisms

9, 10, 11

G4-HR12 Number of grievances about human rights impacts filed, No

mechanisms

addressed and/or resolved based specifically on human
rights impacts.
SOCIAL: SOCIETY
External Impact
Aspect: Local Communities*
MM6 Number and description of significant disputes relating to No

land use, customary rights of local communities and
indigenous peoples

External Impact
MM7 The extent to which grievance mechanisms were used to No

resolve disputes relating to land use, customary rights of
local communities and indigenous peoples, and the
outcomes
Aspect: Anti-Corruption
DMA Disclosure of Management Approach No 1, 2, 6, 8, 9


G4-SO4 Communication and training on anti-corruption policies No

and procedures
Aspect: Grievance Mechanisms for Impacts on Society

11


External Impact
G4-SO11 Number of grievances about impacts on society filed, No

mechanisms

addressed and/or resolved based specifically on impacts on
society.
Aspect: Artisanal and Small-Scale Mining*
MM8 Number and percentage of company operating sites No

where artisanal and small-scale mining (ASM) takes place
on, or adjacent to, the site, the associated risks and the
actions taken to manage and mitigate these risks
Aspect: Resettlement

11

MM9 Sites where resettlements took place, the number of No

households resettled in each, and how their livelihoods
were affected in the process
Aspect: Closure Planning

8, 10


External Impact
MM10 Number and percentage of operations with closure plans No
* Aspect is not material but is included in the Mining and Minerals Sector Disclosure.
Impact Boundaries Legend
1. Employees and contractors
2. Business partners (JVs)
3. Local communities
4. Consumers
5. Labour unions
6. Shareholders and investor groups
7. Industry peers and associations
8. Government and regulators
9. Suppliers
10. Community organizations and NGOs
11. Indigenous communities

About This Report
This is the third year in which we’ve combined our annual report and our corporate social responsibility (CSR) report.
We believe that social performance is as important as financial and operating performance and that combining the
reports presents a truly representative account of the Company’s activities in 2016.
We published our Management’s Discussion and Analysis of Results of Operations and Financial Condition and the
consolidated financial statements for the year ended December 31, 2016, on February 22, 2017. Copies are posted
to our website. The Business and Financial Review section of this report covers the content normally included in our
annual report.
This is the 13th year that we have produced a CSR report, and this is our ninth report based on the Global Reporting
Initiative (GRI) Sustainability Reporting Guidelines. Our most recent previous report was released in May 2016. This
report contains standard disclosures from the GRI G4 guidelines, prepared largely in accordance with the Core
option.
Our report covers all operating and project locations reported in Our Company, as well as our Tom and Jason
properties in the Yukon, and exploration activities managed by Hudbay in Chile during the 2016 calendar year. CSR
report content has been defined based on our materiality analysis and aspects identification process, which applied
to all of Hudbay’s operating assets.
More information on the scope of our reporting is available in the CSR Performance Data section of this report.
BASIS OF REPORTING
All financial information is presented in US dollars except where otherwise noted. All operating data is reported
using the metric system unless otherwise noted. Some metrics are reported on both an absolute basis and an
intensity basis against kilotonnes of metal processed. Safety data frequency rates are measured per 200,000 hours
worked.
QUALIFIED PERSON
The technical and scientific information in this annual report related to the Constancia mine and Rosemont project
has been approved by Cashel Meagher, P. Geo, Hudbay’s Senior Vice President and Chief Operating Officer. The
technical and scientific information related to the Manitoba sites and projects contained in this annual report has
been approved by Robert Carter, P. Eng, Hudbay’s Lalor Mine Manager. Messrs. Meagher and Carter are qualified
persons pursuant to NI 43-101. For a description of the key assumptions, parameters and methods used to estimate
mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to
which the estimates of scientific and technical information may be affected by any known environmental,
permitting, legal title, taxation, sociopolitical, marketing or other relevant factors, please see the Technical Reports
for the company’s material properties as filed by Hudbay on SEDAR at www.sedar.com.

FORWARD-LOOKING INFORMATION
This annual report contains forward-looking information within the meaning of applicable Canadian and United
States securities legislation. All information contained in this annual report, other than statements of current and
historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified
by the use of words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”, “estimates”, “forecasts”,
“strategy”, “target”, “intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these
or similar words) and statements that certain actions, events or results “may”, “could”, “would”, “should”, “might”
“occur” or “be achieved” or "will be taken" (and variations of these or similar expressions). All of the forward-looking
information in this annual report is qualified by this cautionary note.
Forward-looking information includes, but is not limited to, production, cost and capital and exploration expenditure
guidance, anticipated production at the company’s mines and processing facilities, the anticipated timing, cost and
benefits of developing the Rosemont project, Pampacancha deposit and Lalor growth projects, anticipated mine
plans, anticipated metals prices and the anticipated sensitivity of the company’s financial performance to metals
prices, events that may affect its operations and development projects, the permitting, development and financing
of the Rosemont project, the potential to increase throughput at the Stall mill and to refurbish the New Britannia
mill and utilize it to process ore from the Lalor mine, anticipated cash flows from operations and related liquidity
requirements, the anticipated effect of external factors on revenue, such as commodity prices, estimation of mineral
reserves and resources, mine life projections, reclamation costs, economic outlook, government regulation of mining
operations, and business and acquisition strategies. Forward-looking information is not, and cannot be, a guarantee
of future results or events. Forward-looking information is based on, among other things, opinions, assumptions,
estimates and analyses that, while considered reasonable by Hudbay at the date the forward-looking information is
provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause
actual results and events to be materially different from those expressed or implied by the forward-looking
information.
The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions
or making forecasts or projections set out in the forward-looking information include, but are not limited to:
the success of mining, processing, exploration and development activities;
the scheduled maintenance and availability of Hudbay’s processing facilities;
the sustainability and success of Hudbay’s cost reduction initiatives;
the accuracy of geological, mining and metallurgical estimates;
anticipated metals prices and the costs of production;
the supply and demand for metals that Hudbay produces;
the supply and availability of all forms of energy and fuels at reasonable prices;
no significant unanticipated operational or technical difficulties;
the execution of Hudbay’s business and growth strategies, including the success of its strategic investments and
initiatives;
the availability of additional financing, if needed;
the ability to complete project targets on time and on budget and other events that may affect Hudbay’s ability to
develop its projects;
the timing and receipt of various regulatory, governmental and joint venture partner approvals;

the availability of personnel for Hudbay’s exploration, development and operational projects and ongoing
employee relations;
the ability to secure required land rights to develop the Pampacancha deposit;
maintaining good relations with the communities in which Hudbay operates, including the communities
surrounding its Constancia mine and Rosemont project and First Nations communities surrounding its Lalor and
Reed mines;
no significant unanticipated challenges with stakeholders at Hudbay’s various projects;
no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters;
no contests over title to Hudbay’s properties, including as a result of rights or claimed rights of Aboriginal
peoples;
the timing and possible outcome of pending litigation and no significant unanticipated litigation;
certain tax matters, including, but not limited to, current tax laws and regulations and the refund of certain value-
added taxes from the Canadian and Peruvian governments; and
no significant and continuing adverse changes in general economic conditions or conditions in the financial
markets (including commodity prices and foreign exchange rates).
The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those
expressed or implied by the forward-looking information may include, but are not limited to, risks generally
associated with the mining industry, such as economic factors (including future commodity prices, currency
fluctuations, energy prices and general cost escalation), uncertainties related to the development and operation of
Hudbay’s projects (including risks associated with the permitting, development and economics of the Rosemont
project and related legal challenges), risks related to the maturing nature of the 777 and Reed mines and their
impact on the related Flin Flon metallurgical complex, dependence on key personnel and employee and union
relations, risks related to the schedule for mining the Pampacancha deposit (including the timing and cost of
acquiring the required surface rights), risks related to the cost schedule and economics of the capital projects
intended to increase processing capacity for Lalor ore, risks related to political or social unrest or change, risks in
respect of Aboriginal and community relations, rights and title claims, operational risks and hazards, including
unanticipated environmental, industrial and geological events and developments and the inability to insure against
all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated,
compliance with government and environmental regulations, including permitting requirements and anti-bribery
legislation, depletion of Hudbay’s reserves, volatile financial markets that may affect Hudbay’s ability to obtain
additional financing on acceptable terms, the failure to obtain required approvals or clearances from government
authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of mineral
reserves and resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation
activities, the company’s ability to comply with its pension and other post-retirement obligations, Hudbay’s ability to
abide by the covenants in its debt instruments and other material contracts, tax refunds, hedging transactions, as
well as the risks discussed under the heading “Risk Factors” in the company’s most recent Annual Information Form.

Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption
prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking
information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not
assume any obligation to update or revise any forward-looking information after the date of this annual report or to
explain any material difference between subsequent actual events and any forward-looking information, except as
required by applicable law.
NOTE TO UNITED STATES INVESTORS

This annual report has been prepared in accordance with the requirements of the securities laws in effect in Canada,
which may differ materially from the requirements of United States securities laws applicable to U.S. issuers.

Contact Us
We invite your comments and questions about this report.
For investor relations matters, please contact Candace Brulé, Director, Investor Relations, 416 362-8181,
[email protected].
For CSR matters, please contact David Clarry, Vice President, Corporate Social Responsibility, 416 362-7364,
[email protected].
Annual and Special Meeting of Shareholders

May 4, 2017, 10:00 a.m. ET
Toronto, Ontario

Glossary
Accident frequency – number of injuries (recordable or lost time) multiplied by 200,000, divided by total hours
worked
Biodiversity – short for “biological diversity”; the variety of living organisms, genetic diversity and habitat diversity
that creates and sustains variation in the environment
Community investment – voluntary investment of funds in the broader community, including for physical
infrastructure and social programs
Conflict-free minerals – mineral production that does not contribute to serious human rights abuses in regions of
armed conflict (drawing on the definitions provided in the Dodd–Frank Act)
Contractor – one who agrees to perform work or supply items at a certain price or rate
Donations – contributions to charities
Employee – a person directly employed by Hudbay and/or its subsidiaries
G4 indicators – performance indicators contained in the G4 Guidelines of the Global Reporting Initiative. The G4
Guidelines – Core option provide the framework for this report
GHG emissions – greenhouse gas emissions
Global Reporting Initiative (GRI) – an independent institution whose mission is to develop and disseminate globally
applicable sustainability reporting guidelines. For more information, visit www.globalreporting.org
Grant in lieu – an amount paid instead of property taxes
Lost time accident (LTA) – a work-related injury that causes the injured person to be unable to return to work on
his/her next scheduled workday after the day of the injury, because he/she is unfit to perform any duties
MAC – Mining Association of Canada
Material information – a fact or a change to the Company that could reasonably be expected to have a significant
effect on the market price or value of the securities of the Company
N/ap – not applicable
N/av – not available
Restricted work – a work-related injury where a licensed health care provider or the employer recommends that the
employee not perform one or more of the routine functions of the job or not work the full workday that the
employee would have otherwise worked
Tailings – the fine waste rock that remains after separating the valuable minerals from the ore during mining and
processing of mineral resources. Tailings may contain trace quantities of metals found in the host ore, as well as
added compounds used to extract the minerals
TSM – Towards Sustainable Mining – an initiative of the Mining Association of Canada

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The Nature of Mining

2016 Annual and CSR Report

Hudbay 2016 Annual and CSR Report 1

About This Report 118

Hudbay 2016 Annual and CSR Report 2

To succeed during a down cycle, Hudbay draws on internal resources, including

To keep building strong community relations, we operate safely and

At every mine, in every jurisdiction, we make sustainability and responsibility

Hudbay 2016 Annual and CSR Report 1

Hudbay 2016 Annual and CSR Report 2

Hudbay 2016 Annual and CSR Report 3

In Manitoba, we have an ongoing partnership with Manitoba Sustainable Development (formerly

Hudbay 2016 Annual and CSR Report 4

Hudbay 2016 Annual and CSR Report 5

Hudbay 2016 Annual and CSR Report 6

“Copper and zinc are essential elements

Hudbay 2016 Annual and CSR Report 7

Hudbay 2016 Annual and CSR Report 8

Corporate Governance and Nominating

Environmental, Health, Safety and Sustainability

W. Warren Holmes* Alan Hair Igor Gonzales*

Tom A. Goodman* Alan R. Hibben* Sarah B. Kavanagh*

Hudbay 2016 Annual and CSR Report 9

Management Information Circular

Hudbay 2016 Annual and CSR Report 10

Corruption fraud training for the supply chain group in Manitoba

Hudbay 2016 Annual and CSR Report 11

Contact our Board of Directors by mail or email at [email protected].

Hudbay 2016 Annual and CSR Report 12

Hudbay 2016 Annual and CSR Report 13

Alan Hair David Bryson Cashel Meagher

Eugene Lei Javier Del Río David Clarry

Patrick Donnelly Jon Douglas Elizabeth Gitajn

Hudbay 2016 Annual and CSR Report 14

Hudbay 2016 Annual and CSR Report 15

Met or exceeded all production and operating cost guidance.

Production (contained metal in concentrate)*

Copper (000 tonnes) 174.4 147.3

Zinc (000 tonnes) 111.0 102.9

Gold (000 ounces) 114.3 100.2

Silver (000 ounces) 3,756.0 2,791.5

Cash and cash equivalents $ 146, 864 $ 58,852

Hudbay 2016 Annual and CSR Report 16

Revenue $ 1,128,678 $ 886,051

1. Attributable to owners of the Company.

Hudbay 2016 Annual and CSR Report 17

Potential acquisitions should be in politically stable, mining-friendly jurisdictions in the Americas.

Acquisitions should be accretive to Hudbay on a per share basis.

FINANCIAL AND BUSINESS OBJECTIVES FOR 2017

Advance permitting and technical work at the Rosemont project.

Hudbay 2016 Annual and CSR Report 18

2016 Performance Highlights

Safety performance broadly consistent with 2015.

11% reduction in unit operating costs over 2015.

Hudbay 2016 Annual and CSR Report 19

Consolidated Financial Statements PDF !

Management’s Discussion and Analysis PDF !

Hudbay 2016 Annual and CSR Report 20

Grade A Responsible CSR Best Practice