Hudbay to shutter flagship mining operations in Manitoba eliminating 900 jobs

Hudbay Minerals Inc., the owner of the proposed Rosemont Copper Mine, is closing down its flagship mining operations in northern Manitoba in 2021, an action that will eliminate 900 jobs and inflict severe economic damage to the community of Flin Flon that has depended on mining for more than 90 years.

“Prospects for our members are bleak,” a joint statement issued by seven Flin Flon unions warned after Hudbay announced its plans to shut down all mining operations in the town of about 5,000 residents.

“Some will have to leave Flin Flon. Members are already looking for jobs elsewhere. If they risk staying past 2021, there will be minimal good paying jobs in Flin Flon. We believe this will devastate the community of Flin Flon and surrounding area, as for every one job we lose, four people are affected,” reads the union statement published in The Reminder, Flin Flon’s weekly newspaper.

Hudbay Manitoba business unit vice president Rob Assabgui released a statement to workers in late November stating that efforts by the company to extend the lifespan of the 777 mine had failed, not only stating the mine would shut down by 2021, but that the Flin Flon mill would be placed under care and maintenance and the zinc plant would “most likely” be shut down, The Reminder reported. Continue reading

Posted in Hudbay, Labor | 1 Comment

Former Rosemont lobbyist set to become acting Interior Secretary

U.S. Department of Interior Secretary Ryan Zinke’s pending resignation opens the door for former Rosemont Copper Company lobbyist David Bernhardt to become acting Interior secretary at a pivotal time in the permitting process for Rosemont’s proposed massive open-pit copper mine.

Toronto-based Hudbay Minerals Inc. owns Rosemont Copper, which is seeking permits to build the third largest open-pit copper mine in the United States in the Santa Rita Mountains on the Coronado National Forest 35 miles southeast of Tucson.

Bernhardt lobbied for the mine in the 1.78-million-acre Coronado National Forest from 2011 through 2015. Later, he remained a consultant for the project until he was appointed deputy Interior Secretary in 2017. Rosemont Copper Co. paid about $1.8 million in lobbying fees from 2011 to 2016 to a Denver law firm, Brownstein Hyatt Farber Schreck, where Bernhardt was a shareholder, DCReport.org reported in Nov. 2016.

Bernhardt has recused himself from any involvement in decisions impacting former clients including Hudbay until Aug. 3, 2019, according to a conflict of interest statement he submitted to Interior officials in August 2017.

A seasoned political operative and former oil, gas, and mining lobbyist, Bernhardt has been the driving force in transforming Interior from a steward of the nation’s public lands and endangered species to primarily an agency designed to facilitate fossil fuel production and extractive industries. Continue reading

Posted in General, Hudbay, Mining Law, Wildlife | 4 Comments

Pima County ratchets up opposition to Rosemont Mine as Army Corps Clean Water Act permitting decision looms

Pima County has provided additional information to the U.S. Army Corps of Engineers Division Commander and staff to bolster their long-standing opposition to the proposed Rosemont mine.

In a series of five letters written since September, Pima County provided the Corps with additional evidence to support denying the Section 404 CWA permit to Toronto-based Hudbay Minerals Inc. The Corps’ Los Angeles district office recommended denying the permit in July 2016.

The CWA permit is needed before Hudbay could begin constructing the mile-wide, half-mile deep open-pit mine that would dump hundreds of millions of tons of potentially toxic waste rock and mine tailings on more than 2,500 acres of Coronado National Forest. The mine – which would become the third largest open-pit copper mine in the U.S. – is planned for the Santa Rita Mountains 35 miles southeast of Tucson.

In several instances, Pima County only learned of pertinent permitting information submitted by Hudbay to the Army Crops through federal Freedom of Information Act requests.

There is also evidence that Hudbay significantly understated anticipated mining production when it applied for a state Air Quality Control permit in 2013 only to revise production upward when it applied for an amended air pollution permit after federal environmental studies were concluded. Higher production will increase toxic air emissions. Continue reading

Posted in Clean Water Act, Endangered Species, Groundwater, Hudbay, Recreation, water | 1 Comment

Hudbay facing shareholder rebellion for “systematic” mismanagement

Hudbay Minerals is facing a shareholder rebellion from one of its largest institutional investors angered over its slumping stock price and “systematic” mismanagement including “fundamentally” misunderstanding the permitting process and public opposition for its proposed $1.9 billion Rosemont Copper Mine.

Canadian private equity fund Waterton Global Resource Management, which says it owns 4.9 percent of Hudbay’s shares, issued a scathing Oct. 5 press release lambasting Hudbay’s operations: “The Company’s recent market performance and operational misses have led Waterton to lose confidence in management and the Board.”

Waterton specializes in the metals and mining sector and says it has experts with “extensive experience in evaluating, optimizing and permitting mining assets around the world, and specifically in the Americas, including in Arizona.”

Screen Shot 2018-10-08 at 11.22.59 AMHudbay’s stock has fallen 44 percent since last January compared to a 12 percent decline in copper prices, Waterton notes.

Waterton was sharply critical of Hudbay’s handling of its primary assets in Manitoba, Peru and the proposed Rosemont project planned for the Santa Rita Mountains in the Coronado National Forest southeast of Tucson.
Continue reading

Posted in Hudbay, Investors | 4 Comments

Harper’s turns its sharp eye on Rosemont and Resolution mines

The September issue of Harper’s Magazine reports on proposals by foreign companies to construct two massive copper mines on environmentally sensitive landscapes held sacred by Arizona Native American tribes.

Written by Tucson-based journalist Mort Rosenblum and graced with stunning photography by Samuel James, the feature article provides a comprehensive and insightful overview of the monumental scale of modern copper mining and the threats posed by the proposed Rosemont and Resolution copper projects.

“Modern copper mines devastate landscapes, typically depleting huge amounts of water and covering vast areas with piles of toxic mine waste, and virtually always discharging harmful pollutants,” writes Rosenblum.

Toronto-based Hudbay Minerals Inc. is seeking permits to construct the $1.9 billion Rosemont open-pit copper mine on the Coronado National Forest in the Santa Rita Mountains 30 miles southeast of Tucson. Continue reading

Posted in General, Hudbay, water, Wildlife | 1 Comment