Hudbay Minerals (TSX: HBM; NYSE: HBM) says a renewable energy contract it’s inked in Peru for its Constancia copper operations marks a major milestone towards meeting its 2030 goal to reduce greenhouse gas emissions by half.
On Thursday, the diversified miner said it’s signed a new 10-year power purchase agreement with ENGIE Energía Perú, one of the country’s largest energy power generation and energy infrastructure companies. The energy contract will come into effect January 2026.
According to Hudbay, the new contract provides “improved flexibility in power supply levels and lower contracted costs” as compared to the existing power supply contract. It functions on a consumption basis, ensuring the company’s costs are variable based on actual usage, with no minimum spend or penalty for use below the contracted rate.
Under the new contract, the company’s will receive renewable energy certificates (RECs) as an assurance of the supply of renewable energy dedicated to Constancia. These RECs will be applied to Hudbay’s energy consumption, allowing the company to achieve a 100% carbon-neutral energy supply at Constancia. They will allow reduce total Scope 1 and Scope 2 GHG emissions at Hudbay’s global operations by 40% during the life of the contract. The company is targeting a 50% reduction in GHG emissions by 2030.
“We are proud of this achievement as it places Hudbay firmly in reach of achieving a 50% emissions reduction by 2030 and on track for net zero by 2050. Additionally, Hudbay’s low carbon footprint production will continue to produce the metals needed for the global transition to a low-carbon future,” Peter Kukielski, Hudbay’s president and CEO, commented in a news release.
Earlier this month, the company made a bid to expand its copper asset portfolio with a friendly, US$439-million offer for Vancouver’s Copper Mountain Mining (TSX: CMMC). The deal would make it the third-largest copper miner in Canada.
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