Glencore warns regulatory uncertainty puts Horne Smelter investment at risk
Diversified miner Glencore has cautioned that uncertainty around Quebec’s regulatory framework could jeopardise a proposed $300-million investment at its Horne copper smelter in Rouyn-Noranda, after the city council referred a request to amend the smelter’s ministerial permit to provincial authorities.
The company said on December 18 that while it respected the Rouyn-Noranda City Council’s decision, the matter ultimately falls under the jurisdiction of the Quebec government, with which discussions are continuing. Structural decisions expected before year-end will be critical for the long-term viability of both the Horne Smelter and the Canadian Copper Refinery (CCR), it said.
Glencore submitted a request in July to amend its permit, including an 18-month transition period to reach a target of 15 ng/m3 of arsenic. The company stressed that the extension forms part of a broader package aimed at establishing what it described as a “realistic, stable, and predictable regulatory framework” to support further environmental improvements.
“Glencore cannot commit to investing $300-million without the assurance that all elements of its request will be agreed to,” the company said, adding that regulatory predictability was essential given the scale of the investment and associated risks.
According to Glencore, key requirements for the smelter’s future include aligning the ministerial permit with the July 22 modification request to allow full implementation of its emissions reduction plan on a realistic timeline, and confirming a stable framework for future permits, including maintaining the 15 ng/m³ arsenic target or an alternative mechanism to reduce investment risk.
“Our willingness to invest in and improve the facilities at the Horne Smelter is real and serious. However, it depends on one unavoidable condition: the establishment of a realistic, stable, and predictable long-term regulatory framework, commensurate with the required investments and associated risks,” said Vincent Plante, executive director of Glencore’s North American copper division.
Plante also highlighted strong local support for the operation. “I also want to highlight the remarkable commitment and solidarity shown by our workers and partners in recent weeks. Their support demonstrates the importance of the Smelter to our community and strengthens our determination to ensure its sustainability.”
Glencore emphasised the strategic importance of the Horne Smelter and the CCR, which together form Canada’s only fully integrated copper smelting and refining chain. The facilities support more than 3 200 direct and indirect jobs, generate close to $850-million in added value and recycle thousands of tonnes of material each year.
The company maintained that the smelter’s operations are safe, noting that arsenic concentrations have declined significantly over the past two decades. It said modelling indicates that a 15 ng/m3 target at the legal sampling station would translate to less than 7 ng/m3 over 98% of the urban area.
