Insights ยท Processing
US copper rod supply and the Michigan processing plan
A refinery takes years to permit and build, and a quarter to close. That asymmetry is the whole story of Western refining capacity.
Why US processing
The gapDemand is here, capability is not
The grid, transport, data centres and the defence industrial base all compete for the same finished copper, and much of the capability to make it sits outside the United States. Rebuilding that capability is slower than building demand, which is why it has to start before the demand peaks.
Michigan
The planConcentrate into metal industry can specify
Bbabsal Industries Inc, registered in Ohio, is developing processing capability in Michigan: rod, wire, cable and oxygen free copper, made to the tolerances manufacturers require, fed by concentrate moving from the Central African Copperbelt through the Atlantic route.
What has to be true first
Three things decide whether the plant is financed, in the order they have to happen. Feedstock: secured concentrate supply at the volume and grade the plant is designed around. Offtake: committed buyers for the finished metal. Capital: debt and equity assembled against those two contracts, not ahead of them. All three are under discussion, and a discussion will not be described as a commitment.
For manufacturers and partners
The conversationWho this is for
Manufacturers thinking about where their copper rod comes from in 2030, development agencies building industrial capacity, and investors who understand that processing assets are financed on contracts, not on hope.
Enquiries: info@bbabsalmines.com. Background: Operations and our study on US refining.