Glencore Canada halts near‑billion-dollar upgrades at Horne Smelter amid regulatory impasse

Glencore Canada announced an immediate suspension of investment and the start of a demobilization plan at the Horne Smelter, with medium‑term reductions at the CCR Refinery, after talks with Québec failed to produce the regulatory clarity the company says it needs. Management framed the move as a response to an absence of commitments that would justify large capital outlays, and set an effective date for the operational change on February 3, 2026. The portfolio at stake included nearly one billion dollars of planned spending over five years, of which roughly $300 million was planned specifically for emissions‑reduction projects. Executives argued that approving those expenditures without a stable regulatory horizon would expose the firm to undue financial and operational risk. Glencore has repeatedly asked for changes to the ministerial authorization to enable a realistic timeline for emissions work and for confirmation that certain regulatory parameters — notably a 15 ng/m³ arsenic benchmark — will remain in place for the next authorization period. The company says it remains open to alternative risk‑mitigation arrangements, including financial mechanisms, while discussions continue. Glencore also highlighted recent improvements in local air quality measurements, citing a sizable decline in arsenic readings at its legal monitoring station and high compliance across the town in 2024, yet warned that project delays jeopardize the ability to meet requirements that start in March 2027. The smelter continues to operate under the current authorization, but the suspended projects are positioned as necessary to satisfy forthcoming standards. The announcement signals a harder line from a major operator when regulatory timelines and enforcement expectations are perceived as shifting or uncertain. For the region, the pause injects immediate uncertainty for workers, contractors, and the local supply chain and forces both company and government to reassess pathways to keep the asset viable. Over the coming weeks and months, stakeholder engagement, potential financial guarantees, or regulatory adjustments will determine whether the projects resume or whether more severe outcomes, including scaled closures, become unavoidable.