Hudbay Reports Production Interruption at its 777 Mine
12 October 2020 - 11:00AM
Hudbay Minerals Inc.
(“Hudbay” or the “company”) (TSX, NYSE:
HBM) today reports that production at its 777 Mine
in Flin Flon, Manitoba, has been temporarily suspended due to an
incident that occurred on October 9th during routine maintenance of
the hoist rope and skip, which is the bucket used to hoist ore from
underground. The hoist rope detached from the skip, causing the
skip to fall to the bottom of the shaft. There were no injuries and
all underground personnel were safely evacuated from the mine using
the secondary ramp access.
An inspection of the damage to the shaft is
underway and it is expected to take several weeks to fully assess
the damage and the remedial work needed. In the meantime, the
company has notified its insurers and has implemented its business
continuity plans to mitigate potential impacts to production from
the Manitoba business unit. This includes reassigning equipment and
personnel to the Lalor mine in Snow Lake and continuing to operate
the zinc plant by processing available zinc concentrate inventory
and optimizing the production of zinc concentrate from the Snow
Lake operations.
“This was an unfortunate event, but we are
thankful there were no injuries and that our safety protocols were
closely followed. We have an exceptional team in Manitoba who have
proven their ability to overcome challenging situations time and
time again, and I am confident they will remedy this challenging
situation safely and efficiently,” said Peter Kukielski, Hudbay’s
President and Chief Executive Officer.
The company will provide a further update once
it has a better understanding of the remedial work required to
resume production at 777.
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, expected timelines to complete the
inspections at the 777 mine and the company’s ability to mitigate
impacts on production from its Manitoba operations and remedy the
damage that occurred. 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 timing and outcome
of the inspections at the 777 mine, the ability to mitigate
production impacts from the 777 mine shutdown and the ability to
remedy the damage and resume production.
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 primarily producing copper concentrate (containing copper,
gold and silver) and zinc metal. Directly and through its
subsidiaries, Hudbay owns three polymetallic mines, four ore
concentrators and a zinc production facility in northern Manitoba
and Saskatchewan (Canada) and Cusco (Peru), and copper projects in
Arizona and Nevada (United States). The company’s 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 vision is to be a responsible, top-tier operator of
long-life, low-cost mines in the Americas. 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. The company is governed by the Canada
Business Corporations Act and its shares are listed under the
symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange
and Bolsa de Valores de Lima. Further information about Hudbay can
be found on www.hudbay.com.
For further information, please contact:
Candace BrûléDirector, Investor Relations(416)
814-4387candace.brule@hudbay.com
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