22. Environmental and other provisions

		Decommis- sioning, restoration and similar liabilities			Deferred share units³		Restricted share units^{1, 3}			Performance share units³			Other²			Total
Balance, January 1, 2023	$	276,402		$	6,872	$	6,855		$	2,989		$	10,213		$	303,331
Net change in provision		(4,017	)		1,094		2,959			382			4,689			5,107
Copper Mountain, acquired provision		12,702			-		-			-			-			12,702
Disbursements		(2,069	)		-		(5,138	)		(1,075	)		(2,402	)		(10,684	)
Unwinding of discount (note 7f)		9,948			-		-			-			-			9,948
Effect of change in discount rate		18,520			-		-			-			-			18,520
Effect of foreign exchange		3,855			71		39			45			35			4,045
Effect of change in share price		-			623		373			239			-			1,235
Balance, December 31, 2023	$	315,341		$	8,660	$	5,088		$	2,580		$	12,535		$	344,204

¹Certain amounts relating to the Arizona segment are capitalized.

²Relates primarily to flow-through share premiums, restructuring costs and other non-capital provisions.

³ Please refer to note 27a for further information.

Provisions are reflected in the consolidated balance sheets as follows:

December 31, 2023

Decommis-
sioning,
restoration
and similar
liabilities

Deferred
share units

Restricted
share units

Performance
share
units

Other

Total

Current (note 16)

1,370

8,660

2,147

727

9,388

22,292

Non-current

313,971

2,941

1,853

3,147

321,912

315,341

8,660

5,088

2,580

12,535

344,204

		Decommis- sioning, restoration and similar liabilities			Deferred share units³			Restricted share units^1,3			Performance share units₃			Other²			Total
Balance, January 1, 2022	$	467,800		$	8,107		$	10,889		$	5,402		$	10,320		$	502,518
Net additional provisions made		13,440			1,184			3,866			239			3,918			22,647
Disbursements		(15,460	)		-			(6,232	)		(1,115	)		(3,633	)		(26,440	)
Unwinding of discount (note 7f)		8,498			-			-			-			-			8,498
Effect of change in discount rate		(184,508	)		-			-			-			-			(184,508	)
Effect of foreign exchange		(13,368	)		(386	)		(352	)		(287	)		(392	)		(14,785	)
Effect of change in share price		-			(2,033	)		(1,316	)		(1,250	)		-			(4,599	)
Balance, December 31, 2022	$	276,402		$	6,872		$	6,855		$	2,989		$	10,213		$	303,331

¹Certain amounts relating to the Arizona segment are capitalized.

²Relates primarily to restructuring costs and other non-capital provisions.

³Please refer to note 27a for further information.

December 31, 2022		Decommis- sioning, restoration and similar liabilities		Deferred share units		Restricted share units		Performance share units		Other		Total
Current (note 16)	$	4,162	$	6,872	$	4,836	$	1,736	$	6,485	$	24,091
Non-current		272,240		-		2,019		1,253		3,728		279,240
	$	276,402	$	6,872	$	6,855	$	2,989	$	10,213	$	303,331

Decommissioning, restoration and similar liabilities are remeasured at each reporting date to reflect changes in discount rates, which can significantly affect the liabilities.

Decommissioning, restoration and similar liabilities ("DRO")

Hudbay's decommissioning, restoration and similar liabilities relate to the rehabilitation and closure of currently operating mines and metallurgical plants, development-phase properties and closed properties. The amount of the provision has been recorded based on estimates and assumptions that management believes are reasonable; however, actual decommissioning and restoration costs may differ from expectations.

DRO are remeasured at each reporting date to reflect changes in discount rates, inflation, exchange rates, and timing and extent of cash outflows which can significantly affect the liabilities. The amount of this provision has been recorded based on estimates and assumptions that management believes are reasonable; however, actual decommissioning and restoration costs may differ from expectations.

During the year ended December 31, 2023, the Company recorded a non-cash gain of $11,416 in the consolidated income statements mainly related to a revaluation adjustment of Flin Flon's environmental reclamation provision (December 31, 2022 - $133,460). This was primarily caused by a general increase in long term, risk-free discount rates during 2023 based on movements in Canadian bond yields. Typically, an operating site will reflect any revaluation adjustments of its environmental reclamation provision against its reclamation assets. However, since the Flin Flon operations closed in June 2022, the corresponding Flin Flon assets have been fully depreciated and cannot be reduced below their residual value, resulting in the remaining impact being recorded as a non-cash gain in re-evaluation adjustment - environmental provision in the consolidated income statements.

Hudbay's decommissioning and restoration liabilities relate mainly to its Manitoba, Peru and British Columbia operations. Management has placed the remaining Flin Flon assets on care and maintenance. The majority of closure activities will occur once all mining activities in Manitoba are completed. These provisions also reflect estimated post-closure cash flows that extend to the year 2123 for ongoing monitoring and water treatment requirements. Management anticipates most decommissioning and restoration activities for the Peru operation will occur from 2035 to 2103, which include ongoing monitoring and water treatment requirements. Management anticipates most decommissioning and restoration activities for the British Columbia operation will occur from 2041 to 2142, which include ongoing monitoring and water treatment requirements.

As at December 31, 2023, decommissioning, restoration and similar liabilities have been discounted to their present value at rates ranging from 3.01% to 4.86% per annum (December 31, 2022 - 3.26% to 4.75%), using pre-tax, risk-free interest rates that reflect the estimated maturity of each specific liability.