Hudbay pauses Snow Lake mine due to wildfire

[Redator]

Hudbay Minerals (TSX, NYSE: HBM) said on Wednesday it has temporarily suspended operations in Manitoba due to surging wildfires throughout parts of the province.

The suspension follows a precautionary early evacuation notice issued for the town of Snow Lake, where the Canadian miner operates an underground polymetallic mine with over 1,100 employees.

According to Hudbay, the early evacuation positions the company well for a safe return to full operations once conditions permit. Only essential personnel, authorized by emergency services, will remain in Snow Lake to assist with emergency activities, it added.

In addition to assisting the firefighting efforts, the company has also committed C$1 million in financial relief for its employees and set up a donation fund in support of the affected communities.

“We will continue to monitor the situation, ensuring a safe return to full operations as soon as it is advisable,” Rob Carter, Hudbay’s senior vice president, Canada, said in a statement.

Last week, the company removed its non-essential staff from the Flin Flon region, where it still conducts care and maintenance work to support the Snow Lake mine operation.

In its press release Wednesday, Hudbay said it believes its infrastructure and facilities in both Snow Lake and Flin Flon are “well-protected from the wildfires and have a low risk of being damaged.”

Despite the temporary halt, Hudbay management still expects to achieve its 2025 annual guidance for its Manitoba operations, citing strong performances to date. Last year, Snow Lake produced 214,225 oz. of gold, 12,536 tonnes of copper, 33,339 tonnes of zinc and nearly 1 million oz. of silver.

Shares of Hudbay Minerals gained 1.2% at C$12.98 apiece by midday Wednesday, giving the Toronto-based miner a market capitalization of C$5.1 billion.

Spreading wildfire

The wildfire, which was first detected on May 27, has yet to be contained and is threatening other communities including Big Island Lake, Schist Lake and Bakers Narrows.

The event has caused suspensions at other mine operations in Manitoba, including Alamos Gold’ (TSX, NYSE: AGI) Lynn Lake project and Sinomine’s Tanco mine, one of Canada’s two producing lithium mines.

Separately, wildfires in the neighbouring province of Alberta have also prompted the temporary shutdown of some oil and gas production.