Request for Information on Copper Processing in Western Canada – What we heard

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• Economic and market considerations
• Value chain considerations
• Technology considerations
• Location and infrastructure
• Next steps
• Contact us

Economic and market considerations

Most respondents indicated that near-term economic viability may be challenging but recognized the potential long-term strategic value of new copper processing capacity.

Key economic headwinds include low global treatment and refining charges, global competition for raw materials, and high operating costs associated with energy use and regulatory compliance. Copper producers note that, for processing capacity in Western Canada to have a competitive advantage, the total costs of domestic transportation and treatment would need to be lower than the costs of export and treatment overseas. Respondents note that some level of public support could be required to improve the near-term business case, for example, through financial incentives, demand certainty mechanisms, regulatory measures, and infrastructure investments.

Despite these near-term economic challenges, several respondents identified potential long-term strategic benefits, including greater supply chain resilience through increased processing options for Canadian copper producers. Responses received from producers indicate that their reliance on foreign smelting markets increases their exposure to geopolitical risk from global disruptions. At the same time, they note that existing contracts may make it difficult for them to pivot to domestic processing in the near term, emphasizing the need for long-term supply sourcing planning. According to many industry respondents, economic uncertainty for domestic processing could be addressed through the development of downstream semi-fabrication and manufacturing as part of a full value chain in Canada.

Value chain considerations

Many respondents emphasized the importance of coordinated development across the full copper value chain – from upstream resource development and long-term offtake agreements to downstream processing, manufacturing and recycling.

Most respondents agreed that growing global and domestic demand for refined copper is also likely to further improve the viability of an integrated value chain approach in Canada. An integrated approach would help address upstream supply uncertainty through the sustained development of new copper mines, involve long-term midstream planning, and ensure stable domestic demand through expanded copper pre-fabrication, manufacturing and recycling capacity. A value chain approach could also include support for existing processing assets in Eastern Canada, as well as improved logistics to move copper concentrate across the country.

Some respondents also noted the importance of scrap and e-waste processing capabilities to improve the sustainability and overall business case of a new smelter. However, many respondents pointed out that such capabilities would be a longer-term prospect in Western Canada given the current lack of copper scrap at scale compared to Eastern Canada.

Several respondents highlighted the potential for the recovery of byproducts from the copper smelting process, including sulphuric acid as well as gold and other precious metals, as a way to improve the project’s economics and integration with other sectors of Canada’s industrial economy. Respondents also suggested supporting the development of domestically integrated industries with demand for sulphuric acid, such as fertilizer manufacturers, to reduce exposure to global byproduct price and market volatility as part of a full value chain approach. Finally, respondents outlined how the potential to integrate a future processing facility with both recycling and byproduct recovery will depend primarily on the chosen processing technology.

Technology considerations

Respondents expressed a range of views on preferred processing technologies, highlighting policy considerations associated with different technical approaches.

Traditional pyrometallurgical processing is generally viewed by respondents as a more proven technology at larger scales and more suitable for the by-production of sulphuric acid, which could offer economic advantages if markets for the byproduct are available. Emerging hydrometallurgical and electrochemical processing solutions may offer potential advantages, including lower costs, reduced environmental impacts, and greater flexibility in scaling and modularity to adapt to variable volumes of raw material supply. Respondents noted that these emerging technologies would need to be demonstrated at commercial scale before broader adoption.

The deciding factor for the choice of technology, according to many respondents, is the nature of the copper raw material. Copper deposits mined in Western Canada are predominantly high-quality copper sulphides, which can be more efficiently processed pyrometallurgically, while hydrometallurgical processing would be more suitable for copper oxide ore and lower quality materials, which could come from alternative sources. A handful of responses also proposed a hybrid processing solution that combines hydrometallurgical leaching to enhance the purity of copper concentrate, which would then allow for a lower emission pyrometallurgical smelting process.

Depending on the chosen technology, respondents identified several environmental impact mitigation approaches, ranging from emissions capture and slag treatment for pyrometallurgy to chemical input recycling and tailings management for hydrometallurgy. Some also identified opportunities to integrate processing facilities with existing low-emission energy systems and local industrial carbon management approaches to support emissions reduction.

Finally, some respondents advocated for the implementation of modern digital technologies to improve project efficiency, economics and operational resilience – namely through enhanced cybersecurity, digital monitoring, automation and artificial intelligence.

Location and infrastructure

Respondents were generally aligned on the key factors that could inform the location of new copper processing capacity.

To support the economics of a new facility, respondents highlighted proximity to raw materials (e.g., copper concentrate producing mines/mills), access to transportation and trade corridors, and proximity to low-cost, low-emission energy sources as key geographical factors. Depending on their chosen location, respondents emphasized that reliable long-term raw material supply commitments and competitive logistics arrangements would be critical to offset longer distances from upstream sources. From a project development perspective, respondents noted that industrial land readiness, regulatory certainty, and access to existing industrial infrastructure could help reduce development risk and support integration, scale, and long-term operating efficiency. Depending on their preferred technology, some respondents also prioritized proximity to markets and trade corridors for potential byproducts like sulphuric acid and precious metals, as well as proximity to inputs such as chemicals necessary for certain hydrometallurgical processes.

Rather than focusing on a single facility, some respondents described potential copper processing in Western Canada as a system that is distributed across the region. In this framing, primary smelting would be located closer to raw materials, tidewater, and low-emission power, while complementary activities – including refining, chemical and by-product utilization, recycling and scrap upgrading, and downstream fabrication – could be located where industrial infrastructure is already established. These respondents suggest that a distributed system could reduce project risk by allowing development to be staged over time rather than requiring a single site to resolve raw material security, permitting, utilities, logistics, and downstream demand all at once.

Finally, respondents emphasized that early and meaningful engagement with Indigenous communities and local municipalities would be essential to project design, infrastructure planning, environmental management, and long-term project acceptance, including opportunities for partnerships and participation in project development.

Next steps

Governments will continue to assess the information received in the context of broader economic, environmental, and market considerations.

This RFI is exploratory in nature, intended to inform ongoing analysis of the potential for copper processing in Western Canada. We want to thank all respondents. Further studies and next steps will be communicated through the Critical Minerals Centre of Excellence (CMCE) Newsletter.

Contact us

For any questions, please contact the Critical Minerals Centre of Excellence at: cmce-cemc@nrcan-rncan.gc.ca.