Glencore seeks Canada funding for copper smelter

Glencore (LSE: GLEN) said it’s seeking Canadian government funding to modernize its copper processing plants in Quebec – including the century-old Horne smelter and a sister refinery in Montreal.

The Swiss miner and commodities trader recently applied for funding under Canada’s $5 billion (US$3.6 billion) Strategic Response Fund, company spokesman Fabrice de Dongo said Tuesday. Glencore warned last month it could shut the plant and paused plans to invest nearly $1 billion in its Quebec copper operations, including $300 million for emissions reduction, after failing to reach a deal with the provincial government.

“Having received confirmation that our application meets all program criteria, we are now awaiting a clear statement from the federal government regarding its intention to support the continued operations of the Horne smelter and the CCR refinery,” de Dongo told The Northern Miner by email. “Glencore Canada believes in the future of Quebec’s copper processing value chain and remains fully committed to ensuring its long-term viability.”

All investments

The funding application covers all investments to be made over the next five years at both Horne and the CCR refinery, not just emissions reductions, Glencore said. It called the facilities “assets that are critical to Canada’s industrial sovereignty.”

“Quebec has sent a clear signal of support for the industry, and the federal government must do the same,” de Dongo said.

The province recently opened the door to giving Glencore more time to ensure that Horne complies with environmental regulations.

Proposed amendments to a wide-ranging bill now being debated by provincial lawmakers in Quebec City would postpone a new arsenic emissions limit of 15 nanograms per cubic meter for the Horne smelter until 2029 — a two-year delay — and maintain it at that level until at least 2033. 

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.

Prime Minister Mark Carney unveiled the Strategic Response Fund in September to help spur business investment in manufacturing amid growing trade tensions with the United States. It supports large-scale, “transformative” projects that strengthen supply chains and protect jobs in key sectors such as steel, aluminum, automotive and advanced technologies, the government says.

A spokesperson for Innovation, Science and Economic Development Canada said the federal government couldn’t immediately provide a comment for this story.

Special agreements

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 most recent ministerial authorization, Horne must 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.

In October, the Quebec Superior Court authorized a class-action lawsuit brought by two Rouyn-Noranda residents against Glencore and the provincial government. The plaintiffs say emissions produced by Horne have caused various types of damage.

Horne and the 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.

Unions have warned that CCR would shut its doors if Horne closes since the Rouyn-Noranda plant is its main supplier.