We take our environmental responsibilities and commitments seriously. This is not just about being responsible corporate citizens – it is also just plain good business sense.

Environmental Responsibility

Our goal is to continuously improve our environmental performance over time by:

• 1. Reducing our consumption and use of inputs such as energy, water and land.
• 2. Reducing our environmental footprint from outputs such as greenhouse gas and sulphur dioxide emissions and other wastes.
  
  

Inputs

Energy Efficiency
We want to improve energy efficiency by setting a target of a further one per cent reduction in energy consumption from 2004 levels each year. In 2007, our consumption of energy slightly increased as a result of the inclusion of two new facilities in the company’s portfolio. We are committed to increasing our energy efficiency and believe that the roll out of our continuous improvement programs at these new locations should yield positive results in the years to come.

Water Use
We need to ensure effective usage of freshwater by setting a target to reduce surface water consumption by one per cent by the end of 2007. In 2007, we succeeded in the enhancement of our flow measurement system and overall water balance.

Land Disturbed by Mineral Extraction and Exploration
We strive to use best practices to minimize our footprint and to rehabilitate all lands after extraction activities have ceased. In 2007, we completed decommissioning of Konuto Lake Mine, Westarm Mine and Namew Lake Mine sites.

Outputs

CO2 Emissions
We aim to meet emissions targets set by the various governments in the jurisdictions where we operate. We are proud of our early response and reduced GHG emissions by 30 percent below 1990 levels compared to the Kyoto target of 6 percent. Total CO2 emissions for 2007 were stable and roughly the same as 2006 levels.

Sulphur Dioxide and Air Quality
In an effort to reduce our total sulphur dioxide emissions we managed to bring them below government requirements.

Tailings
As HudBay Minerals Inc.’s operations grow, so do our tailings. We are committed however to following industry best practices in managing these wastes in a safe and environmentally appropriate way while pursuing reclamation and naturalization over the long-term. In 2007 we completed the first 10 million dollar enhancement phase of the Flin Flon Tailings Impoundment System project.

Towards Sustainable Mining
We subscribe to the Mining Association of Canada’s “Towards Sustainable Mining” initiative, which includes the implementation of practices and policies that contribute to the well-being of the environment, the economy and society as a whole, together with the health and safety of employees. Information reported to the Mining Association of Canada includes crisis management planning, external outreach, energy and greenhouse gases and tailings management. In 2007 we improved our “Towards Sustainable Mining” efforts.