Category Archives: Logistics

America’s copper paradox

Copper is an important mineral in this electric and electronic age. It’s not exactly in short supply, but it takes a long time to start up new supply sources in the US. Taseko Mines harvested its first copper cathodes at Florence Copper in early March 2026, ending an roughly 18-year drought of entirely new US copper mines built from scratch. (See second article below).

Several mines are under development in Arizona. I’m an interested observer of mining; I worked for a very fine mining company long ago, which operated a very large copper mine outside Tucson AZ USA. I learned a lot about copper and other mining operations, much of which is now out of date— the world moves on!

The interest in this story is the intricacy of metals supply chains. It’s been impossible to build a smelter in the US in recent years. Smelters produce many noxious materials, and no one wants them nearby. So copper mined in the US must either be processed on-site, using a process called solvent extraction-electrowinning (SX-EW) or be shipped elsewhere to be upgraded to commercially usable copper. Affinity highlighted a critical bottleneck: smelting. Only two primary copper smelters remain operational in the country, meaning new domestic mine production does not necessarily translate into domestically refined metal. It has to be shipped overseas to be processed.

Rio Tinto’s giant Resolution Copper project in Arizona could eventually supply more than a quarter of US copper demand, according to Affinity. This project is forging ahead despite intense criticism from Native American tribes and citizens who deplore the landscape devastation an open pit copper mine creates. US law does not require mining operators to remediate land they have destroyed while mining.

To process the deep underground ore, Resolution Copper will perform the initial extraction and concentration on-site, but they will not do the final chemical refining on-site. Instead, they will use a two-stage approach: processing the ore into a high-grade powder called “concentrate,” and then shipping that material to external commercial customers for smelting and refining.

So many current plans do not eliminate the need for foreign involvement in metallic copper production.

Broker Banchero Costa reported that the US imported a record 225,094 tonnes of refined copper and copper alloys in July, the highest monthly total in data going back to 1990. The figure was up 78% month-on-month and 8% year-on-year as traders rushed material into the country ahead of possible tariffs.

It’s really hard to eliminate dependency on foreign infrastructure in today’s world. and perhaps we should not want to, but rather cultivate alliances and friendships with countries that can help us. Copper smelter capacity is spread around the world. Data below is from World Population Review.

Table showing copper smelter production by country for 2021, listing countries and their production values in tonnes.

Japan and Korea and India would be good candidates. Except for Chile and Canada, these countries are far from the US. Both also produce large quantities of copper. That means a large need in the US for shipping capacity to and from the foreign smelters.

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Sam Chambers September 17, 2026

https://splash247.com/americas-copper-paradox-sets-up-new-seaborne-trade-flows

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Written by Dean Belder Apr. 23, 2025 01:55PM PST

https://investingnews.com/next-us-copper-mine

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https://worldpopulationreview.com/country-rankings/copper-smelter-production-by-country

Offshore Carbon Capture and Storage

If carbon capture technology is ever to be useful, there have to be places to store the captured carbon. One place is deep in the earth, in abandoned oil wells. We’re seeing somewhat more interest in carbon capture in maritime, and also in manufacturing areas. Maritime is more of an issue, because the captured carbon must be stored onboard, and offloaded periodically.

One option is to sell the compressed cold carbon to industrial users. But there’s not enough demand if most ships were producing captured carbon. Already, onshore carbon capture can supply a good deal of the commercial need for CO2.

Reuse of carbon in this way is simply circular; it does not actually remove carbon from the natural environment, it simply recycles it. And many onshore facilities like power plants and cement processes could rather easily capture their carbon emissions.

All this carbon can’t simply be recycled; there must be a place to put it. It’s odd that there has not been more investment in places to sequester the captured carbon.

That’s why the INEOS announcement in the article below is interesting. INEOS is an international chemical company with headquarters in many countries. (They also co-own and operate Manchester United, a Premier League football club).

They have designed a complete system to sequester the carbon in the North Sea, called Greensand. The full value chain will be established. The captured CO2 will come from Danish biomethane plants.

Once captured, CO2 is liquefied, delivered by truck to a dedicated CO2 terminal at Port Esbjerg, shipped aboard Carbon Destroyer 1, the EU’s first purpose-built CO2 carrier, and injected into the Nini West reservoir in the Danish part of the North Sea, a depleted oil field some 250 km offshore, approximately 1,800 m beneath the seabed.

Currently the project can store 400000 tonnes annually, but plans to expand to between 4 and 8 million tonnes annually.

There are still institutional barriers limiting capture of CO2 at scale — regulations, infrastructure, and investment. Since we’re not going green on energy anytime soon, it’s time to start investing big time in carbon capture — technology and infrastructure.

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Bojan Lepic September 18, 2026

https://splash247.com/ineos-opens-eus-first-full-scale-offshore-ccs-project

AI use growing, but cost…?

This report by McKinsey, the global consulting firm, sheds some light on what’s happening in the commercial realm with AI. It’s based on an online survey taken in May and June 2026, with 1,719 participants in 97 nations, spread across a full range of regions, industries, company sizes, and functional specialties. 36% of respondents work for companies with more than $1B USD in annual revenue.

The heat map below, from the report, shows the relation of AI use that has passed beyond R&D into scaling phase by industry type and business function. The entries are the percent of respondents who say their firm is into the scaling phase. The business function rows are ranked by total percent.

What stands out?

  • How low are supply chain and manufacturing functions!! You would think there would be a lot of applications in these business functions. But, NO! Maybe it’s just because these functions are typically cost-conscious and slow to choose new technology.
  • But in advanced manufacturing, industry use in supply chains and manufacturing is close to the highest at 14%.
  • IT, knowledge management and software engineering are high. That’s what one expects when a technology such as AI emerges. We saw the same thing with the coming of the internet in the late 1990s.
  • Media is high!! What a surprise! The AI engines train on large quantities of media output. If they just operate as a grandiose search engine, they already add value of a kind we can appreciate.

One of the fascinating tidbits from the report is that chatbots are the most frequently employed form of AI. We guess that already, if we use the internet at all today. Every website seems to have one. And if my experience is any guide, they are mostly useless. They give answers to stupid questions, and can’t handle anything even slightly complicated. The most they do is have a real agent call you, and mostly they don’t do that. They direct you to someplace in the company’s sitemap, which you have probably already read without profit before desperately trying the chat.

I question whether this is the best use of all the energy and other resources consumed searching and re-searching all those tokenized training documents.

We haven’t yet seen the real cost of all these searches, over and over again, of all those training documents. It’s measured in tokens, and currently the tokens are underpriced as a loss leader to get us hooked on using AI instead of the far simpler internet search like Google. We see in daily news how many massive data centers are being built, how much resource they consume (electricity, water, grid capacity). Those costs have to be paid for in a viable business. They have no choice but to charge us for the use.

Just like internet and cell phones and cable TV, and phone service before that, we users will have to pay.

Dan Tinkoff, Lieven van der Veken, Michael Chu, and Tara Balakrishnan, August 2026