Hudbay Reaches a Mutually Agreed Settlement in Longstanding Civil Lawsuits Related to Former Guatemala Operations

Rhea-AI Summary

Hudbay Minerals Inc. (TSX, NYSE: HBM) has reached a final settlement in three civil lawsuits related to alleged actions in Guatemala in 2007 and 2009. This settlement concludes all outstanding legal matters from Hudbay's former activities in Guatemala. The company was named in the suits due to its ownership of the Fenix nickel project, acquired in 2008 and divested in 2011.

The settlement, agreed without admission of liability, acknowledges the differing views on the allegations. Hudbay's CEO, Peter Kukielski, expressed satisfaction in resolving these decade-long matters, recognizing the plaintiffs' difficult circumstances. The company emphasizes its commitment to responsible community engagement and human rights, as outlined in its Human Rights Policy and adherence to sustainable mining practices.

Positive

• Settlement of all outstanding legal matters related to former Guatemala operations
• Conclusion of decade-long litigation without admission of liability
• Demonstration of corporate responsibility in addressing community concerns

Negative

• Potential financial impact of the settlement (details not disclosed)
• Reputational concerns stemming from the allegations, despite lack of admission

Insights

Legal Expert

This settlement marks a significant milestone for Hudbay Minerals, resolving long-standing legal issues related to its former operations in Guatemala. The resolution of these civil lawsuits, which have been ongoing for over a decade, removes a substantial legal overhang for the company. While the settlement comes without admission of liability, it demonstrates Hudbay's willingness to address historical concerns and move forward.

From an investor perspective, this settlement likely reduces future legal risks and associated costs for Hudbay. It may also positively impact the company's ESG (Environmental, Social and Governance) profile, which is increasingly important to investors. The company's emphasis on its current Human Rights Policy and commitment to responsible mining practices could help rebuild trust with stakeholders.

However, investors should note that the financial terms of the settlement were not disclosed, which makes it difficult to assess the immediate impact on Hudbay's financials. The long-term reputational benefits of resolving these issues may outweigh short-term financial considerations, potentially improving Hudbay's standing in the mining industry and with socially conscious investors.

TORONTO, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM) today announced that it has reached a final settlement with all plaintiffs in three civil lawsuits brought against the company regarding alleged actions that occurred in Guatemala in 2007 and 2009. This settlement concludes all outstanding legal matters related to Hudbay’s former activities in Guatemala. Hudbay was named in the civil suits because of its ownership of the Fenix nickel project, which was acquired in 2008. In one of the lawsuits, brought by 11 female plaintiffs, the allegations against the Guatemalan company that owns the project predate Hudbay’s ownership. In 2011, Hudbay divested itself of its holdings in Guatemala and has had no operations there since that time.

“Hudbay is pleased to have reached a mutually agreed settlement that covers all three cases against the company. These matters have been outstanding for more than a decade, and the Board and management at Hudbay are pleased to bring them to a conclusion,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “In doing so, we recognized the difficult economic and social circumstances of the plaintiffs and we are thankful for a constructive resolution with the plaintiffs and their counsel.”

The terms agreed with the plaintiffs confirm the settlement is without admission of liability and the parties continue to have fundamentally differing views on the facts underlying the allegations, including the allegations of misconduct by Hudbay’s subsidiaries.

Hudbay is proud to be a responsible member of the communities in which its people work and live and seeks ways to play a constructive role through its operations. Hudbay’s Human Rights Policy, approved and overseen by Hudbay’s Board of Directors, includes commitments to constructive and mutually beneficial engagement with local communities, and security practices that respect human rights. These commitments are reinforced through the company’s adoption of the Mining Association of Canada’s Towards Sustainable Mining program, and the United Nations’ Voluntary Principles on Security and Human Rights at all of its mines.

About Hudbay

Hudbay (TSX, NYSE: HBM) is a copper-focused mining company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining-friendly jurisdictions of Canada, Peru and the United States.

Hudbay’s operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Copper is the primary metal produced by the company, which is complemented by meaningful gold production. Hudbay’s growth pipeline includes the Copper World project in Arizona (United States), the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru) and several expansion and exploration opportunities near its existing operations.

The value Hudbay creates and the impact it has is embodied in its purpose statement: “We care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities.” Hudbay’s mission is to create sustainable value and strong returns by leveraging its core strengths in community relations, focused exploration, mine development and efficient operations.

For further information, please contact:

Candace Brûlé
Vice President, Investor Relations
(416) 814-4387
investor.relations@hudbay.com

FAQ

What civil lawsuits has Hudbay Minerals (HBM) settled regarding its former Guatemala operations?

Hudbay Minerals has reached a final settlement in three civil lawsuits related to alleged actions that occurred in Guatemala in 2007 and 2009, stemming from its former ownership of the Fenix nickel project.

When did Hudbay Minerals (HBM) divest its holdings in Guatemala?

Hudbay Minerals divested its holdings in Guatemala in 2011 and has had no operations there since that time.

Does the settlement imply Hudbay Minerals (HBM) admits liability for the allegations in Guatemala?

No, the settlement is without admission of liability. The parties continue to have fundamentally differing views on the facts underlying the allegations.

What commitments does Hudbay Minerals (HBM) have regarding human rights and community engagement?

Hudbay has a Human Rights Policy that includes commitments to constructive community engagement and security practices respecting human rights. They also adhere to the Mining Association of Canada's Towards Sustainable Mining program and the UN's Voluntary Principles on Security and Human Rights.