The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
'It would be nice if they took the money they make in Flin Flon and Snow Lake and invest it back into this area,' the local politician, who shall remain nameless because we were not on the record, told me a couple of years back. The politician was referring to Hudbay and its plans for a hugely expensive (but probably hugely profitable) copper mine in Peru by the name of Constancia. Forget the fact that Hudbay is also spending big bucks in our region to develop the Lalor and, to a lesser extent, Reed mines. The reality is that we as residents of this area should welcome a more geographically diverse Hudbay. Until Constancia enters production in a couple of years, Hudbay has all of its operational eggs in the Flin Flon-Snow Lake basket. Until now that has worked out pretty good for our region, but, harsh truth be told, that may not always be the case. Metal prices go up and down like a rollercoaster based on a million different factors over which none of us has control. And the variability amongst the different metals can be extreme depending on the notoriously unpredictable global demand. Consider a scenario where zinc, the main product of Flin Flon's 777 and Snow Lake's Lalor, absolutely tanks while copper, the main product of Constancia (as well as Reed), soars. No one wants to see that happen, least of all Hudbay. But if it did, the company that drives Flin Flon's economy and existence would be able to fall back on Constancia in Peru and remain, presumably, financially healthy. That financial health from overseas, in turn, could help sustain operations and jobs here in the North. Or what if factors other than metal prices _ a First Nations lawsuit or a non-competitive tax structure, we'll say _ begin to hinder mining in our region? Profitable Again, if Hudbay has a profitable mine in Peru (or some other overseas country) to turn to while such problems can be figured out, then it would presumably help our region. Of course the opposite could also come true. Perhaps Flin Flon-Snow Lake will find itself propping up Constancia if copper prices go for a slang word for excrement, or if unforeseen challenges arise in the mining climate of Peru. Or perhaps we'll see both scenarios occur, with the economic balance of Hudbay shifting back and forth between northern Manitoba and Peru. The point is, for a company like Hudbay, which is not exactly a mining behemoth, it can't hurt to have a major presence outside of its home base. It has to be done the right way, of course. Hudbay's foray into the Fenix nickel project in Guatemala was an unmitigated disaster that damaged the company's bottom line, blighted its reputation and led to an as-yet-unresolved lawsuit alleging rapes and gunfire. Still, that was one project, and not every overseas venture will be so amiss. Northern Manitoba is Hudbay's foundation, and we all hope (and can realistically expect) things to stay that way. Ideally Hudbay will have strength in every region in which it operates, but in this erratic business of mining, that's unlikely. Which is why geographic diversity is being pursued, and which is why it should be a welcome development for Flin Flon and Snow Lake. Local Angle runs Fridays.
