Could you provide an overview of Hudbay’s operations in Manitoba?

We have been in Manitoba for 90 years, a period over which we have mined over 150 million tonnes of ore in the area. The last year has been transformational for us. Lalor had its first production in 2012, and by last year our idea there was to maintain a 3,000 mt/d operation until the end of the mine life. Yet, we identified some opportunities to increase that by at least 50%. As a result, we are already working at a rate of 4,000 mt/d and we anticipate reaching 4,500 mt/d in 2018. In terms of timing, this has been very positive due to the high zinc prices. We are having record production of zinc this year, and for the first time we have actually shipped zinc concentrate out of the province, even if we are running our zinc plant at Snow Lake to its fullest capacity.

Our Manitoba business unit is a very profitable poly-metallic operation. We already have three concentrator facilities: the Stall mill at Snow Lake, the Flin Flon mill and the new Britannia mill, a gold mill which is idle right now.  Now, 777 is scheduled to be completed by 2020, so it is in a harvest mode; the majority of the capital development is done, so there are no major expenditures and that provides very good economic results. Meanwhile, Reed should be closing in July 2018.

How are you approaching these closures in terms of your relationship with the locals?

The community does rely heavily on employment from us in the area. We have about 1,400 people in Manitoba, as well as 200 contractors. We have been working very closely with our workforce and have kept them very up-to-date in the process. Certainly, there are some challenging times ahead for some of our employees, but at the same time, we are growing our Snow Lake operation so the center of gravity is moving from Flin Flon to Snow Lake. Some people are retiring as well. We are being supportive, through the help of consultants, to develop plans on how to transition in a future state, possibly without operations in Flin Flon.

What are some of the key investments to expand Lalor?

As part of the expansion program, we are in the process of installing a paste backfill plant, which is key for us to reach the 4,500 mt/d level at Lalor in a sustainable manner. We also need to get a better understanding of the gold zone, which has what we still consider an inferred resource, so we need to transfer that resource into value. In terms of technology, we are now running tele-remote operating scoops at both Lalor and 777 that are run from surface. This has increased productivity and safety. Using stoping methods, the scoop operator has to get in and out of the LHD or scoop 100 times over the course of a shift. We try to keep the mines in very good condition but you still walk on broken ground and rock. So, there are hazards associated to this and just from a productivity standpoint we save 15 to 20% in terms of time. We have Atlas Copco technology at Lalor and Sandvik at 777.

With Lalor you will probably celebrate your 100th anniversary in Manitoba. What is the potential for new mines in the area?

Geologically speaking, the Manitoba belt is fertile exploration ground and there are deposits to be found there. We are just in a position today where we have a gap between the volume of zinc that we are producing in Lalor and Snow Lake and what is required to sustain our zinc plant in Flin Flon. In addition to us, there are many companies exploring in the area, so I am sure there is potential for new discoveries. On the other hand, technology will play a key role in the future of this belt. It will be a key component for us to know how some of the marginal deposits that we know and that have been in the ground for many years can show better economics.

What are the advantages of Manitoba as a mining jurisdiction?

I have worked in a variety of different mining districts across Canada and abroad, and Manitoba is probably the lowest-risk mining district that I know of. Our Reed mine, for instance, is within a provincial park. It is quite a special mine and we recognize that; we have a very small footprint and a large water purification system. We were given the opportunity by the province to mine in a provincial park, which was a politically sensitive decision. We knew that to be done, it had to be done well. Also, permitting with the government of Manitoba is very good. We recently permitted our paste fill plant last year, and it only took several weeks, whereas in other jurisdictions it can take years. Where they can, the government is clearly supportive of the industry.