Canada moves to save Glencore’s Quebec copper smelter

Molten copper. Photographer: Oliver Bunic/Bloomberg via Getty Images

THE Canadian and Quebec governments are working to prevent the closure of Canada’s only copper smelter after Glencore threatened to shut the facility unless a deal can be reached over new pollution-control requirements, said Bloomberg News.

Glencore last month suspended plans to invest nearly C$1bn in its Quebec copper operations after talks with the provincial government broke down over measures to reduce arsenic emissions at the Horne Smelter in Rouyn-Noranda, about 630km northwest of Montreal. Without a resolution, the facility would have to be wound down, said the newswire.

Quebec has since proposed legislative changes that would give Glencore more time to meet tougher emissions targets, delaying a new arsenic limit of 15 nanograms per cubic metre by about two years to 2029. The Canadian federal government is separately weighing a financial aid request of around C$150m to help fund new pollution-control systems.

The proposed limit, one-third of current permitted levels, has nonetheless drawn criticism from residents because it remains five times higher than the provincial safe standard, said Bloomberg News.

Medical data has shown the population of Rouyn-Noranda has a higher than average incidence of chronic obstructive pulmonary disease, and a class-action lawsuit seeking damages for residents near the smelter was certified last year.

Glencore has already spent around C$180m on emission-reduction efforts in the community, including purchasing more than 50 homes to create a buffer zone around the plant, Bloomberg said.

The stakes are considerable. The Horne Smelter accounts for roughly 16% of North American copper smelting capacity and supplies Glencore’s copper refinery in Montreal, which in turn is a major feedstock supplier to French cable manufacturer Nexans. Around 3,200 direct and indirect jobs are at risk, Glencore said.