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.
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
Patrick Donnelly Vice President and General Counsel, Hudbay