Glencore (LSE:GLEN,OTCPL:GLCNF) is in talks with Canadian federal and Quebec provincial authorities on a potential deal to keep the Horn smelter running after tighter emissions rules threatened a vital part of North America’s copper supply chain.
Canada’s only copper smelter, located in Rouen-Noranda, is at the center of talks after Glencore suspended upgrade plans last month, citing uncertainty over the new arsenic limit.
The company warned that without changes to the regulatory framework the plant could be closed.
Quebec has Proposed Legislative Amendment This will delay the implementation of stricter emission standards. The amendment would extend the new arsenic limit of 15 nanograms per cubic meter to 2029 and maintain that level until at least 2033.
The limit is one-third of current permitted levels but five times higher than the province’s benchmark safety standard.
At the same time, Ottawa is considering a request for about $108 million in financial aid to help with pollution-control upgrades, according to people familiar with the matter.
“While awaiting regulatory certainty, we are prepared to evaluate other mechanisms, particularly financial mechanisms, to share risk,” Glencore said in a statement. Email Bloomberg.
The Horn smelter processes approximately 215,000 metric tons of copper concentrate and scrap annually, approximately 16 percent of North America’s smelting capacity. There are a small number of smelters operating throughout the United States and Mexico.
The facility also supplies Glencore’s Canadian copper refinery in Montreal. The company has said that about 3,200 direct and indirect jobs could be affected if the smelter closes.
It also produces copper as well as by-products including gold, silver, platinum, palladium and sulfuric acid and processes approximately 100,000 tonnes of electronic scrap each year.
Glencore has spent approximately US$130 million on emissions reduction measures, including the acquisition of more than 50 homes to create a buffer zone around the site. A total of 82 properties are to be demolished.
The talks come as the facility faces ongoing scrutiny over emissions. Medical data have shown higher rates of chronic obstructive pulmonary disease in Rouen-Noranda than the provincial average, and a class action lawsuit The one linked to emissions was authorized last year.
Public health officials have warned that delaying stricter emissions targets could increase exposure risks, especially to nearby residents.
Meanwhile, Quebec officials have defended the proposed timeline changes, arguing that they are necessary to enable investment while maintaining compliance. Quebec Environment Ministry spokesman Louis Potvin said the amendment will allow the Horn smelter to proceed with necessary upgrades and meet its permit conditions, including the 15 nanograms per cubic meter arsenic limit.
“The ministry took into account the position of the National Public Health Authority, which considered the postponement acceptable last October, and the city of Rouen (-Noranda) also supported this postponement,” Potvin. said in an email to CBC News.
The outcome of the negotiations will determine whether the company moves forward with its investment or begins winding down operations at one of the region’s few remaining copper smelting facilities.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
