Swiss miner Glencore has frozen an investment of about $1 billion in a copper smelter in Quebec. The decision is due to a lack of coordination with the provincial authorities on issues environmental regulation.
Glencore has announced the suspension of major investment projects at the Horne Smelter plant in Rouen-Noranda. This plant is Canada’s largest copper producer. The company previously considered closing the plant due to high modernization costs and stricter environmental regulations.
Glencore also plans to reduce medium-term investments at its Montreal site. The company tried to negotiate with the Quebec government on changes to the permitting documents. In particular, she requested more time to reduce emissions and clear guarantees on permissible limits for arsenic emissions.
Without the planned upgrade, the plant will not meet new emissions standards that will take effect in March 2027. Glencore management said the company acted in good faith, but necessary investment conditions were never created.
The plant continues to operate within the framework of the current permit. However, the situation will be reviewed in the coming months, as the company will soon wind down its activities at this site.
Glencore’s decision reflects growing tensions between industry and regulators over environmental policy. The outcome of this dispute could affect the future of the metals industry in Quebec and the investment climate in the region.
Source: Reuters
Image: Bernard Brault
