Glencore to Cut Costs at Canadian Copper and Zinc Plants Amid Global Review

Glencore PLC is set to further reduce costs at its copper and zinc plants in Canada as part of a broader review of its global smelting operations, prompted by declining processing margins. According to an internal memo cited by Bloomberg News on March 14, the company is restructuring its operations to improve efficiency.

As part of the changes, Glencore's copper plants in Quebec and certain recycling sites in the U.S. will be integrated into its zinc smelting division. This move is expected to streamline operations and offset the economic pressures facing its smelting and refining business.

"Our smelting and refining business continues to be under a high level of economic pressure due to challenging market conditions that have led to historically low treatment charges," said Suresh Vadnagra, Glencore's head of zinc assets, according to the report.

Company executives, including COO Xavier Wagner and Jon Evans, head of industrial copper assets, reportedly met with employees to discuss the restructuring and the long-term future of Glencore’s Canadian copper and zinc metallurgical assets.

Glencore operates the Horne copper smelter and the Canadian Copper Refinery in Quebec, which are among the assets affected by the review. When approached for comment, the company declined to provide a statement.

In 2024, Glencore produced 951,600 metric tons of copper, a 6% decline from the previous year, while its zinc output dropped 1% to 905,000 metric tons. The company reported a net loss of $1.63 billion for the year, a sharp contrast to its $4.28 billion profit in 2023, despite a 6% increase in revenue to $230.94 billion.