| Type | Public (TSX: HBM, NYSE: HBM) |
|---|---|
| Founded | 1996 (as Pan American Resources Inc.) 1927 (as Hudson Bay Mining and Smelting Company, Limited)[1] |
| Headquarters | Toronto, Ontario, Canada |
| Subsidiaries | Hudson Bay Mining and Smelting Co., Limited |
| Website | hudbayminerals.com |
HudBay Minerals Inc. (TSX: HBM, NYSE: HBM) is a Canadian mining corporation. Founded as Hudson Bay Mining & Smelting Co., Limited (HBMS) it has been exploring and mining in Manitoba for over 80 years. Much of their history has centered around Flin Flon, Manitoba. HudBay Minerals now has operations in Manitoba, Ontario, Yukon and Guatemala.
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The Flin Flon orebody was discovered by David Collins, a local trapper, and shown to Tom Creighton, a prospector, in 1914. The first claim was registered in 1915. It took more than a dozen years to bring the mine into production because the ore body was huge, of low grade, required lots of hydro energy, was isolated and needed a smelter.
In 1927, the Whitney family of New York created HBM&S, which took over controlling interest in the Flin Flon property. By 1930, the mine, smelter, hydroelectric dam and railroad were in full operation.
On December 21, 2004, HudBay Minerals (HudBay) acquired Hudson Bay Mining and Smelting (HBMS) for C$316 million from Anglo American plc. The purchase was financed by a public offering of C$143.8 million of equity and the issue of US$175 million of debt.[2]
The corporate head office was in Winnipeg, Manitoba, Canada but moved to Toronto in 2008.
Founded as Pan American Resources Inc. the company first went public on the Montreal Exchange as under the symbol PAN in the 3rd quarter of 1996.[3]
On March 12, 2002 Pan American acquired all of Ontzinc Corporation. Subsequently the company renamed itself OntZinc Corporation on August 15, 2002.[4]
Upon acquisition of Hudson Bay Mining and Smelting Co., Limited, the company renamed itself to HudBay Minerals Inc. on December 24, 2004.[5]
On August 26, 2008, HudBay Minerals Inc. announced the completion of a business combination with Skye Resources Inc.[6] Skye Resources was renamed HMI Nickel, and was a subsidiary of HudBay Minerals until HudBay divested of the project through the sale of its interest in CGN to the Solway Group in September 2011. [7]
On November 21, 2008, HudBay Minerals Inc. and Lundin Mining Corporation announced an agreement to combine their resources to create a new major Canadian leader in global mining. This deal fell apart mainly because it did not add value for the shareholders of Hudson Bay Minerals, in fact the value of their shares dropped almost 50% when the deal was announced.
On January 9, 2009 Hudbay Minerals announced suspended operations (and continue on care and maintenance) at Chisel North Mine. The mine will stop producing in late February due to falling zinc metal prices and increased costs . Snow Lake's population is approximately 800 people with over 100 being employed by HBM&S Chisel North Mine.
HBMS now operates three underground mines in the province of Manitoba. Trout Lake Mine and the more recent 777 Mine are located near Flin Flon and Chisel North Mine is located near Snow Lake. The two mines at Flin Flon produce zinc and copper along with smaller values of gold and silver. Chisel North Mine produces a mid to high-grade zinc ore at a smaller production rate using a variation to the room and pillar method.
New high grade gold values have been found at the LALOR lake along with high grades of zinc and there may also be a high grade copper zone also.
Today the original 1930 Island Falls hydroelectric facility is owned and operated by SaskPower.
The Fenix ferro-nickel project in Guatemala is owned by Compañía Guatemalteca de Niquel (CGN), which was 98.2% owned by HudBay Minerals from August 2008 to September 2011. The Fenix Project in eastern Guatemala is a substantial brownfield nickel laterite mine and process plant that has been on care and maintenance since 1980. [8] HudBay Minerals had estimated that it will cost $1 billion to restart the mine and processing operation.[9]
HudBay Minerals and two of its subsidiaries are subject to an ongoing $12 million lawsuit in Canada over the killing of a prominent Mayan community leader at the Fenix Mining Project.[10]
The lawsuit alleges that on September 27, 2009, security personnel employed at the Fenix mine surrounded, beat and hacked at Adolfo Ich Chamán with machetes before shooting him in the head at close range in an unprovoked attack.[11] A non-governmental organization has referred to the murder as the “targeted killing of a well-known community leader.”[10]
Amnesty International has stated “[t]he allegations are very serious, and Amnesty International calls for a swift, full and impartial investigation into the death of Adolfo Ich Chamán and other incidents of violence, to make the results public and to bring those responsible to justice”.[12]
HudBay states that they and CGN have cooperated fully with all investigations conducted by Guatemalan authorities in connection with the incidents which occurred on September 27, 2009 in El Estor. CGN carried out an internal investigation and determined that none of its employees or security personnel were involved in the death of Chamán.[13][14]
The Fenix mining project is also subject to ongoing land claims by local Mayan communities. In 2006, the International Labour Organization, an agency of the United Nations, ruled that Guatemala had breached international law by granting the Fenix mining concession without first consulting with local Mayan people. The ILO released a report discussing the violation in 2007.[15]
In late 2006 and early 2007, Skye Resources (acquired by HudBay Minerals in 2008, renamed HMI Nickel and subsequently sold by HudBay in 2011) sought forced evictions of Mayan communities located on contested mine land. Homes were burned to the ground during these evictions.[16][17]