Hudbay Minerals
Social Due Diligence

Regional Focus: Latin America

Since 2013, Hudbay Minerals has trusted O Trade in assisting with Social Due Diligence for its organization. Hudbay recognizes the importance of risk management and social responsibility, which includes evaluating and anticipating challenges with potential acquisition opportunities.

Using its unique social mapping methodology, O Trade conducted social due diligence for two of Hudbay’s potential acquisition targets in Latin America. The Company’s legal due diligence was able to evaluate the state of the mineral title and any formal legal challenges by local stakeholders. However, O Trade was able to supplement these insights by helping Hudbay ascertain the sentiment of nearby communities. Often the communities are very receptive to mining development and the economic benefits it can bring, and the only way to confirm such is to have people on the ground engaging the stakeholders and asking their views.

Benefits:

  • Helped decision makers better understand social risk, the risk of conflict and the cost associated with social infrastructure

  • Analyzed potential conflicts arising over the issue of land access

  • Anticipated the potential social impact of the project on the region

  • Measure people’s acceptance towards mining in their region

  • Evaluated the social environment of the project in contrast to the demands of international standards such as Equator Principles, IFC Performance Standard on Environmental and Social Sustainability, and Principles on Responsible Investment

  • Assessed levels of poverty, living and working conditions of local communities, and educational development, as well as the nuances of local business practices, and overall security in the region

  • Acted as a baseline to start stakeholder engagement

 

“O Trade’s social mapping methodology has been an instrumental tool in helping to identify potential risks arising out of land access, the use of infrastructure and conflict with other industries with a presence in the region close to the mining concession.”

Patrick Donnelly Vice President and General Counsel, Hudbay