TORONTO, ONTARIO, Sep 29, 2009 (Marketwire via COMTEX News Network)
-- HudBay Minerals Inc. ("HudBay") (TSX:HBM) today commented on recent
events occurring in the vicinity of its Fenix project, owned by Compania
Guatemalteca de Niquel ("CGN"), its subsidiary in Guatemala.
On
Sunday, September 27, 2009 discussions were occurring between
authorities and illegal occupiers of CGN land known as area 217 in an
effort to persuade the occupiers to comply with their commitments under
an agreement to relocate. A majority of local families have complied
with the resettlement agreement but a few continue to illegally occupy
CGN property at this location.
HudBay wants to emphasize that no
evictions were carried out and none were threatened or intended. The
discussions were consistent with HudBay's strategy of peacefully
resolving illegal occupations through dialogue.
When
negotiations ended without resolution, government vehicles departing from area
217 were attacked near the town of El Estor by a separate group of organized protestors.
Reports
received by CGN indicate that the protestors also ransacked the local
police station and stole weapons, including automatic firearms. Later in
the day, they attacked a CGN-sponsored community hospital in El Estor,
resulting in extensive damage to the facility and equipment recently
donated by the Hope Alliance.
CGN has confirmed that several of
its employees were injured during the attack on the hospital. Throughout
the attacks, CGN personnel showed great restraint and acted only in
self defense. There was no damage reported at the mine site or plant
facilities owned by CGN.
It has also been reported that one of
the protestors died as a result of gunshot wounds sustained during a
confrontation among the protestors.
"We deeply regret the
injuries and loss of life
that occurred in the El Estor area during the attacks by an organized
minority," said Peter R. Jones, HudBay's chief executive officer. "Our
number one priority is to ensure the safety and security of all
residents and employees in El Estor."
CGN is committed to working
collaboratively with the local community through various outreach
programs to support the development and enhancement of health, education
and cultural centers and to increase environmental understanding in the
region.
"The majority of residents in the area support our
outreach efforts, investments in the local community and development of
the Fenix project," added Mr. Jones. "We remain committed to working
with local residents to reach a fair and equitable solution to land
claims and resettlement."
CGN is committed to advancing the development of the Fenix project to reach full production when it is
economically viable. Currently, CGN employs approximately 100 people in Guatemala.
CGN intends to cooperate fully with any investigation conducted by authorities in connection with the incidents.
HudBay Minerals Inc.: Strength to Build the Future
HudBay
Minerals Inc. (TSX:HBM) is a Canadian integrated mining company with
assets in North and Central America principally focused on the
discovery, production and marketing of base metals. The company's
objective is to maximize shareholder value through efficient operations,
organic growth and accretive acquisitions, while maintaining its
financial strength. A member of the S&P/TSX Composite Index and the
S&P/TSX Global Mining Index, HudBay is committed to high standards
of corporate governance and sustainability.
Forward Looking Information
This
news release and its attachments contain
"forward-looking information" within the meaning of applicable
securities laws. Forward looking information includes but is not limited
to information concerning the Fenix project in Guatemala. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects", or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", "understands" or "does not anticipate", or
"believes" or variations of such words and phrases or statements that
certain actions, events or results "will", "may", "could", "would",
"might", or "will be taken", "occur", or "be achieved". Forward-looking
information is based on the views, opinions, intentions and estimates of
management at the date the information is made, and is based on a
number of assumptions and subject to a variety of risks and
uncertainties
and other factors that could cause actual events or results to differ
materially from those anticipated or projected in the forward-looking
information (including the actions of other parties who have agreed to
do certain things and the approval of certain regulatory bodies).
Many
of these assumptions are based on factors and events that are not
within the control of HudBay and there is no assurance they will prove
to be correct. Factors that could cause actual results or events to vary
materially from results or events anticipated by such forward-looking
information include risks associated with the mining industry such as
economic factors (including future commodity prices, currency
fluctuations and energy prices), failure of plant, equipment, processes
and transportation services to operate as anticipated, dependence on key
personnel and employee relations, environmental risks,
government regulation, actual results of current exploration activities,
possible variations in ore grade or recovery rates, permitting
timelines, capital expenditures, reclamation activities, land titles,
and social and political developments and other risks of the mining
industry, as well as those risk factors discussed in the company's
Annual Information Form dated March 30, 2009, which risks may cause
actual results to differ materially from any forward-looking statement.
Although
HudBay has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those
described in forward-looking information, there may be other factors
that cause actions, events or results not to be anticipated, estimated
or intended. There can be no assurance that forward-looking information
will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. HudBay undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change except as required by applicable securities laws, or to
comment on analyses, expectations or statements made by third parties in
respect of HudBay, its financial or operating results or its
securities. The reader is cautioned not to place undue reliance on
forward-looking information.
(HBM-G)
SOURCE: HudBay Minerals Inc.
HudBay Minerals Inc.
John Vincic, Vice President,
Investor Relations and Corporate Communications
(416) 362 0615
Email: john.vincic@hudbayminerals.com
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