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Peru

Constancia

Primary Metal

Copper

Daily Ore Milled

86,000 tonnes

Mine Type

Open Pit

Vea Hudbay Perú laborando en el trabajo y en las comunidades de Perú

Constancia is the lowest cost open-pit sulphide copper mine in South America.

Hudbay arrived in Peru with the acquisition of the Constancia copper project in 2011. We completed construction of Constancia in 2014, and the mine went from first production to full production in just five months. Today Constancia is the lowest cost open-pit sulphide copper mine in South America. The Constancia property also includes Pampacancha, a high-grade satellite copper deposit located only four kilometres from the Constancia mill. We continue to work diligently to finalize benefits agreements with the communities near Pampacancha, a necessary precondition before the deposit can be developed. In 2018, we acquired a series of properties near Constancia, adding a large, contiguous block of exploration prospects within trucking distance of the Constancia processing facility.

Number of Employees

891

Mine Life

Constancia
2036

100% of Constancia’s employees are from Peru

2019 Performance (Contained metal in concentrate produced)

Copper

113,825 tonnes

Precious Metals

55,505 ounces

Technology

Strengthening safety, efficiency and production at Constancia

Environment

As part of a plan to manage air quality, Constancia began using a dust suppressor on a 10-kilometre stretch of road. Hudbay was the first mining company in southern Peru to use the dust suppressor and, following its success, many other mining companies in the area have also begun to use it.

Zero
Air quality parameters exceeded at Constancia in 2018

Community

Open, honest and continuous community engagement is critical to exploring and developing new mines. This is what we did and continue to do in Peru. We have also made every effort to learn about the language and values of the Peruvian people and to integrate the operation into their culture. In doing so, we have built strong, positive relationships. Since 2012, we have reached more than 90 agreements with communities near Constancia. These agreements include commitments related to local employment and procurement and investments in health, education and infrastructure initiatives.

90+
Agreements reached with communities near Constancia

People

Our safety performance in Peru is strong and our people are continuously working to make it even stronger. The Constancia site created a “Taking Care of Your Hands” campaign to raise awareness about risks associated with manual handling work in response to two hand-related injuries at the site. We also launched the Behaviour-Based Safety process – a management tool to reinforce positive behaviours and improve safety performance. To further strengthen the safety culture, Constancia holds twice-monthly “Creating Culture” events designed to engage employees on safety-related issues. Employees and contractors in Peru completed more than 30,000 hours of health and safety induction training in 2018 and over 52,000 hours toward annual occupational health and safety training requirements.

30,000hours
of health and safety induction training completed at Constancia in 2018

Reserves and Resources - Constancia

Current mineral reserves and resources as of January 1, 2020

Mineral Reserve and Resource Estimates1 Tonnes Cu Grade
(%) 		Mo Grade
(g/t) 		Au Grade
(g/t) 		Ag Grade
(g/t)
Constancia Reserves
Proven 408,800,000 0.28 85 0.035 2.76
Probable 77,500,000 0.27 70 0.044 3.58
Total proven and probable - Constancia 486,300,000 0.28 83 0.036 2.89
Pampacancha Reserves
Proven 32,400,000 0.59 178 0.368 4.48
Probable 7,500,000 0.62 173 0.325 5.75
Total proven and probable - Pampacancha 39,900,000 0.60 177 0.360 4.72
Total proven and probable 526,600,000 0.30 90 0.061 3.03
Constancia Resources
Measured 122,700,000 0.18 55 0.028 1.77
Indicated 154,300,000 0.20 65 0.033 1.87
Inferred 83,100,000 0.18 43 0.036 3.39
Pampacancha Resources
Measured 11,400,000 0.41 101 0.245 4.95
Indicated 6,000,000 0.35 84 0.285 5.16
Inferred 10,100,000 0.14 143 0.233 3.86
Total measured and indicated 294,400,000 0.20 63 0.045 2.01
Total inferred 93,200,000 0.18 54 0.057 3.44

Note: totals may not add up correctly due to rounding.

1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability. Mineral reserves and resources calculated using metal prices of $3.10 per pound copper, $11.00 per pound molybdenum, $17.00 per ounce silver and $1,375 per ounce gold. The Constancia and Pampacancha reserve pits consist of operational pits of proven and probable reserves and are based on metal prices noted, metallurgical recoveries applied by ore type (between 84.4% to 90.5%), and processing costs of $4.54 per tonne milled, general and administrative costs of $1.60 per tonne milled and mining costs of $1.30 and $1.35 per tonne moved (waste and ore, respectively).

Vea Hudbay Perú laborando en el trabajo y en las comunidades de Perú

continue in english on hudbay.com

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