Glencore (LSE: GLEN) said it’s resuming work on emissions-reduction projects at its Horne Smelter in Quebec after the provincial government passed a new law giving the company more time to comply with tougher emissions standards.
It also urged Canada’s federal government to match provincial efforts with “timely and concrete support” for Horne through the Strategic Response Fund. Ottawa’s support “is essential to secure the economic viability of the smelter and the substantial investments to ensure the modernization and competitiveness of the Horne Smelter and CCR Refinery,” Glencore said in a statement.
“The regulatory certainty provided by the government of Quebec, along with its existing targeted programs, speaks to how much the province values the copper sector,” Marc Bédard, chief operating officer of Glencore’s custom metallurgical assets, said in the statement.
“What remains is decisive federal action to solidify Canada’s commitment. Government of Canada support is critical to unlocking future capital investment that will ensure the future of Canada’s last copper smelter and refinery.”
Reversal
Glencore’s announcement marks a reversal from February, when the company suspended nearly $300 million in planned environmental investments and warned that almost $1 billion in broader spending over five years could be jeopardized without a clearer operating framework.
At the time, the company said uncertainty surrounding future emissions requirements and permit conditions made it impossible to proceed with projects critical to the smelter’s future.
Bill 11, which Quebec’s National Assembly passed this week, extends the deadline for reducing ambient air arsenic emissions at Horne to 15 nanograms per cubic meter until 2029-30 – a two-year delay – and maintains it at that level until at least 2033.
The investments are designed to reduce atmospheric emissions from the nearly century-old facility. Horne is Canada’s only copper smelter.
Critical piece
Located in Rouyn-Noranda, about 625 km north of Montreal, Horne is one of the few plants in North America capable of processing copper concentrate and recycled materials such as electronic waste. That makes it a critical piece of the continent’s supply chain for copper – just as Canada and other Western countries seek to cut their dependence on Chinese imports.
Horne and Montreal’s CCR refinery form Canada’s only complete copper-smelting and refining chain. Horne processes copper concentrate from mines, churning out about 210,000 tonnes a year of copper and precious metals.
Glencore said this spring it had applied for funding under Canada’s Strategic Response Fund. Prime Minister Mark Carney unveiled the C$5 billion fund in September to help spur business investment in manufacturing amid growing trade tensions with the United States.
Glencore has repeatedly come under fire in Quebec due to the pollution that Horne causes in Rouyn-Noranda.
Although Horne greatly exceeds provincial standards for arsenic emissions, it benefits from special agreements with the provincial government. Under the previous ministerial authorization, Horne was allowed to produce no more than 45 nanograms of arsenic per cubic metre of air for the fiscal year ending in March. That’s 15 times the provincial standard.
