THE CITY OF FLIN FLON AND HUDBAY ANNOUNCE REVISED FINANCIAL AGREEMENT
Flin Flon, Manitoba, September 7, 2022 – The City of Flin Flon (the “City”) and Hudbay Minerals Inc. (“Hudbay” or the “company”) today announced a new agreement that will provide financial stability to the City after the closure of Hudbay’s operations in Flin Flon.
The new agreement is built on the 95-year relationship between Flin Flon and Hudbay, which have been closely connected since the City’s inception. The new financial terms reflect Hudbay’s reduced presence after the conclusion of mining activities in Flin Flon in June of this year, while still supporting the community where many of its employees live.
“The change in Hudbay’s operations in Flin Flon has been a source of concern for many in the City. However, this new agreement is providing contributions of more than 70% of the historical high payments from past agreements,” said Nicole Hartman, Chief Administrative Officer, City of Flin Flon. “After carefully reviewing other models and benchmarks for municipalities in similar situations, we are very happy with this agreement. We think it is fair to both parties and allows us to continue to plan for the future of our community, even as Hudbay’s role in it changes.”
Hudbay has always sought to be a valued partner to the community by providing financial support through a variety of means. The grant-in-lieu was a key element of this. Flin Flon and Hudbay have operated under a series of grant-in-lieu of taxes agreements, dating back to the beginnings of Flin Flon in 1939. Under the new agreement, Hudbay will continue to pay a grant-in-lieu of all municipal and school taxes.
Concurrently with this agreement, Hudbay and the City entered into agreements for:
• The maintenance by Hudbay of water levels at Cliff Lake for the potable water intake operated by the City; '
• Connection by Hudbay to the City water supply to maintain water levels at the Hudbay reservoir; and
• The provision of fire protection services by the City to the facilities owned by Hudbay.
“We’d like to thank the City of Flin Flon for negotiating in good faith and ensuring that its residents, many of whom are Hudbay employees, can count on a continued partnership for years to come,” said Rob Carter, Vice President of Hudbay’s Manitoba Business Unit. “We still care greatly about the community of Flin Flon and, while our presence in Manitoba looks different, our commitment to the province and the wellbeing of the communities where we operate will not change. This new agreement will help with the transition process as we continue to wind up operations locally.”
The new agreement comes into effect on January 1, 2023.
About the City of Flin Flon
The gateway to the wilds of Northern Manitoba, Flin Flon was founded at the turn of the 20th Century as the home to a world-leading producer of copper and zinc base metals with gold and silver as precious metal by products.
Flin Flon is situated in the Greenstone mineral belt and continues to flourish in mining and mineral exploration, while simultaneously working to diversify its economy, through increased unparalleled adventure tourism, attracting new industry partners, increasing the availability of land resources for development, and encouraging business expansion.
The City of Flin Flon recognizes it is situated on Treaty 5 land and the homeland of the Metis.
For more information about Flin Flon, visit us at www.cityofflinflon.ca or for economic development opportunities, visit www.investfdc.ca. About Hudbay Hudbay (TSX, NYSE: HBM) is a diversified mining company with long-life assets in North and South America. The company’s operations in Cusco (Peru) produce copper with gold, silver and molybdenum by-products. Its operations in Manitoba (Canada) produce gold with copper, zinc and silver by-products. Hudbay’s organic pipeline includes copper development projects in Arizona and Nevada (United States), and its 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 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. Further information about Hudbay can be found on www.hudbay.com.
For media inquiries, please contact:
Chief Administrative Officer, City of Flin Flon
Vice President, Investor Relations, Hudbay