Hudbay Reaches Major Milestone Towards Achieving its 2030 Greenhouse Gas Reduction Targets with the Signing of a Renewable Power Supply Agreement for its Constancia Mine in Peru
April 27 2023 - 7:00AM
Hudbay Minerals Inc. (“Hudbay” or the “company”)
(TSX, NYSE: HBM) is pleased to announce
the signing of a new 10-year power purchase agreement with ENGIE
Energía Perú for access to a 100% renewable energy supply to
Hudbay’s Constancia operations in Peru.
“Last December, Hudbay committed to reducing its
2030 greenhouse gas emissions by 50% and achieving net zero by
2050. The signing of this 10-year power purchase agreement marks a
major milestone for achieving Hudbay’s greenhouse gas reduction
goals,” said Peter Kukielski, Hudbay’s President and Chief
Executive Officer. “We are proud of this achievement as it places
Hudbay firmly in reach of achieving a 50% emissions reduction by
2030 and on track for net zero by 2050. Additionally, Hudbay’s low
carbon footprint production will continue to produce the metals
needed for the global transition to a low-carbon future.”
Guaranteed Supply of Renewable
Energy
Following the end of the current power supply
agreement in Peru, energy will be supplied by ENGIE Energía Perú
starting on January 1, 2026, with a 10-year term. The new agreement
ensures a consistent and guaranteed supply of renewable energy
sufficient for Hudbay’s Constancia operation. The new contract
provides improved flexibility in power supply levels and lower
contracted costs as compared to the existing power supply contract.
The contract functions on a consumption basis, ensuring the
company’s costs are variable based on actual usage, with no minimum
spend or penalty for usage below the contracted rate.
In alignment with Hudbay’s greenhouse gas
(“GHG”) emissions reduction initiatives, the new contract includes
the granting of Renewable Energy Certificates (“RECs”) to Hudbay as
an assurance of the supply of renewable energy dedicated to
Constancia’s electricity consumption. These RECs will be applied to
Hudbay’s energy consumption to enable the company to have a 100%
carbon-neutral energy supply at its Constancia operations. As a
result of the application of these RECs, total Scope 1 and Scope 2
GHG emissions company-wide at Hudbay’s current operations are
expected to decline by 40% during the life of the contract,
positioning the company well to achieve its 2030 climate change
target of a 50% reduction in Scope 1 and Scope 2 GHG emissions.
About ENGIE
ENGIE Energía Perú, is one of the country’s
largest energy power generation and energy infrastructure companies
with over 25 years of experience in Peruvian markets. This supplier
has a strong track record working with mining, industrial and
commercial sectors within the country. ENGIE has a local total
annual capacity of 2,496 megawatts and a diversified range of
energy generation, including thermal, hydro, solar and wind energy
from 8 plants distributed in 4 regions of Peru. ENGIE Energía Perú
is part of the ENGIE Group, present in 70 countries globally. ENGIE
is listed on the Paris and Brussels stock exchanges (ENGI).
Forward-Looking Information
This news release
contains forward-looking information within the meaning of
applicable Canadian and United States securities legislation.
Forward-looking information includes, but is not limited to,
Hudbay’s expectations regarding its ability to meet its GHG
emissions reduction targets, the expected benefits of the new
renewable power supply agreement for Constancia, including the
expected utility of the RECs that will be granted under it, and
Constancia’s anticipated power requirements. 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 the company 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 ability to obtain
renewable energy from Engie for the duration of the contract, the
utility of the RECs that are granted under the contract and no
significant changes to Constancia’s anticipated power requirements
or the regulatory regime for power in Peru.
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), as well as the risks discussed under the
heading “Risk Factors” in Hudbay’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 news
release or to explain any material difference between subsequent
actual events and any forward-looking information, except as
required by applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a diversified mining
company with long-life assets in North and South America. The
company’s Constancia operations in Cusco (Peru) produce copper with
gold, silver and molybdenum by-products. Its Snow Lake operations
in Manitoba (Canada) produce gold with copper, zinc and silver
by-products. Hudbay has an organic pipeline that includes the
Copper World project in Arizona and the Mason project in Nevada
(United States), and its growth strategy is focused on the
exploration, development, operation, and optimization of properties
it already controls, as well as other mineral assets it may acquire
that fit its strategic criteria. Hudbay’s mission is to create
sustainable value through the acquisition, development and
operation of high-quality, long-life deposits with exploration
potential in jurisdictions that support responsible mining, and to
see the regions and communities in which the company operates
benefit from its presence. Further information about Hudbay can be
found on www.hudbay.com.
For investor and media inquiries, please
contact:
Candace BrûléVice President, Investor
Relations (416) 814-4387 candace.brule@hudbay.com
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