David Garofolo, CEO, Hudbay Minerals, was quoted in The Daily Reminder saying:
“WHENEVER ROSEMONT MORPHS FROM DEPOSIT TO MINE, GAROFALO SAYS HUDBAY’S BUSINESS WILL CONSIST OF ABOUT 40 PER CENT CONSTANCIA, 40 PER CENT ROSEMONT AND 20 PER CENT NOTHERN MANITOBA.”
Let’s get the facts straight once again.
It seems management is trying to downplay the significance of their Manitoba Unit in the company’s portfolio. This Manitoba unit has funded a 500 million dollar project at Lalor and Reed Lake Mines.
It has funded a 1.8 BILLION dollar project called Constancia in Peru.
Management claims that their Constancia project will become 40% of the company’s future. They claim that the project is running at full production as of now.
If you have been following the world news, Peru’s largest mining union last Friday approved an indefinite strike beginning on May 18 to demand better working conditions for workers. We say BRAVO!
70 unions representing 20,000 miners nation wide are walking off the job. With no workers, production stops everywhere.
According to our math, 40% production multiplied by 0 workers still equals ZERO.
At the Rosemont project in Arizona even greater obstacles await Hudbay. Major opposition opposes the environmental impact the massive open pit mine will have in the region. The residents of Pima County, government officials and the much more stringent environmental laws in the US may make it an insurmountable obstacle to overcome.
Water availability will be a problem. The region has been in drought conditions for the past several years. They have asked farmers in the region to limit irrigation due to limited water resources. We doubt a massive mine needing massive amounts of water to operate with the risk of contaminating the valuable water table will ever be allowed.
Hudbay has been trying to develop this new mine for several years now and haven’t even broke ground yet. They may never.
This once again leaves the insignificant Manitoba Unit as the only positive cash flow component of Hudbay. Before local management runs this component into the ground, let’s get back to the bargaining table and negotiate a fair contract for everyone.
Your negotiating team