Glencore froze nearly $1 billion in planned investment at the Horne Smelter, saying regulatory conditions in Quebec are not sufficiently in place to justify emissions-reduction and upgrade capex at Canada’s largest copper metal-producing operation.
The suspension is immediate and paired with a demobilization plan at Rouyn-Noranda, with Glencore warning that without the planned projects it will become impossible to meet certain emissions targets that begin taking effect in March 2027.
Glencore also said investments at its Montreal facility will be scaled back over the medium term, aligning with its statement that spending at the CCR Refinery in Montréal-Est will be reduced.
The firm said it was prepared to invest nearly $1 billion over five years, including $300 million earmarked for emissions reduction, but said approving capex of that scale would be irresponsible without assurance the smelter can operate within a “predictable and realistic longer-term framework.”
Glencore said it repeatedly communicated two requirements to Quebec: first, an adjustment to its current ministerial authorization to allow full implementation of the emissions-reduction plan on a realistic timeline, and second, confirmation of a stable regulatory framework for at least the duration of the next authorization, including maintaining the 15 ng/m³ arsenic target.
Between 2022 and 2024, the average arsenic concentration in ambient air measured at the Horne legal monitoring station fell 46.5%, and in 2024 it said 99% of Rouyn-Noranda’s urban area recorded concentrations at or below 15 ng/m³.
Reuters reported Glencore also sought amendments that would allow more time for emissions reductions and confirmation of regulatory certainty around arsenic limits.
While awaiting clarity, the company said it remains open to exploring “other mechanisms,” including financial mechanisms, to reduce short-term investment risk, and noted the smelter continues operating under its current authorization.
Without the suspended projects, Glencore said the situation will need reassessment “in the coming months.”
The halt lands as Finance Minister François-Philippe Champagne has argued refining is “the name of the game,” while the federal budget outlines a $2 billion critical minerals sovereign fund over five years for equity investments, loan guarantees, and offtake agreements.
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