Glencore Canada has suspended major investments at its Horne smelter in Rouyn-Noranda after failing to reach an agreement with the Quebec government by its self-imposed January 31 deadline on long-term operating conditions.

In a statement on Tuesday, the company said it had been “forced to immediately suspend all investments related to emissions reduction and facility upgrade projects” and to implement a demobilisation plan, effective immediately.

Investments at its CCR refinery in Montréal-Est will also be scaled back over the medium term.

The decision follows months of negotiations between Glencore and provincial authorities aimed at securing regulatory certainty for the continued operation of the smelter. Discussions have been ongoing since mid-2025, but no deal has yet been concluded.

Glencore COO for custom metallurgical assets Marc Bédard said uncertainty had made further investment untenable.

“Our employees deserve clear direction for the future. We have worked in good faith and explored every option available to us. Protecting jobs and maintaining operations remain the company's top priorities, but the conditions needed to move forward simply are not in place right now,” he said.

The company had been prepared to invest close to $1-billion over five years, including about $300-million for emissions-reduction projects. However, it said approving investments of that scale without regulatory clarity would be irresponsible.

Glencore has outlined two key conditions for proceeding: adjustments to its current Ministerial authorisation to allow realistic implementation of its emissions-reduction plan, and confirmation of a stable regulatory framework, including retention of the 15 ng/m³ arsenic target.

While talks remain unresolved, the company said it remains open to alternative mechanisms, including financial arrangements, to reduce short-term investment risk.

“It is very disappointing to be potentially on the path to closure when we are convinced the Horne smelter's operations are safe for the community,” Bédard added. “Our immediate priority is being on the ground with our teams. We will be communicating transparently with affected employees and partners.”

Glencore highlighted progress made in recent years, noting that average arsenic concentrations measured at the Horne monitoring station fell by 46.5% between 2022 and 2024. In 2024, 99% of Rouyn-Noranda’s urban area recorded levels at or below the 15 ng/m3 target.

The smelter continues to operate under its current authorisation. However, Glencore warned that without completing the suspended projects, it would become increasingly difficult to meet stricter environmental targets that take effect from March 2027.

The company said the situation would be reassessed in the coming months.