Quebec may delay Horne smelter emissions targets

Quebec has opened the door to giving Glencore (LSE: GLEN) more time to ensure that its Horne copper smelter — the only one of its kind in Canada — complies with environmental regulations, improving the odds that the facility can stay open in the long run.

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 metre for the Horne smelter until 2029 — a two-year delay — and maintain it at that level until at least 2033. 

The Swiss miner and commodities trader paused plans to invest nearly C$1 billion ($719 million) in its Quebec copper operations last month — including $300 million for emissions reduction — after failing to reach a deal with the provincial government on a plan to secure the facility’s long-term viability. It warned it could shut down Horne over stricter pollution rules.

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.

“Glencore Canada welcomes the passage of the amendment to Bill 11 regarding the extension of the ministerial authorization for the Horne Smelter until March 15, 2033,” company spokesman Fabrice de Dongo said Monday via e-mail. “This is an encouraging development, and we continue to monitor the situation closely, but will not be comment further while the legislative process is ongoing.”

Federal funding?

On the federal level, Ottawa is considering $150 million to help Glencore pay for pollution-controls systems, Bloomberg News reported on Monday, citing people familiar with the request who asked not to be identified because the matter is private.

Quebec’s public health authorities have expressed strong concerns about the proposed legislative changes.

Postponing compliance would prolong area residents’ exposure to toxic metals known to increase risks of serious health effects such as cancer, Omobola Sobanjo, head of public health for the Rouyn-Noranda area, said in a March 20 letter to her superior. Since current and past emissions have already exceeded provincial standards, lowering exposure levels as quickly as possible is critical to protecting residents, Sobanjo said.

Glencore has repeatedly come under fire in the province due to the pollution that Horne causes in Rouyn-Noranda.

Special agreements

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.

Vulnerable groups — especially children and pregnant women — would bear the greatest burden of continued exposure, Sobanjo said in her letter. Delaying the implementation of tougher standards would mean that additional cohorts of residents will experience avoidable health risks over time, she added.

Horne and another Glencore facility, Montreal’s Canadian Copper Refinery (CCR), 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 also shut its doors if Horne closes since the Rouyn-Noranda plant is its main supplier.

— With files from Cecilia Jamasmie