Name of the Project
Santa Cruz underground copper mine.

Location
Arizona, in the US.

Project Owner/s
Ivanhoe Electric.

Project Description
Ivanhoe Electric’s prefeasibility study (PFS) for the Santa Cruz project, completed in June 2025, has defined a high-quality underground mining operation with strong economics.

The project has probable mineral reserves of 136-million tonnes at a grade of 1.08% copper totalling 1.5-million tonnes of contained copper, supporting a 23-year mine life.

The PFS proposes a 20 000 t/d mining operation using modern mining technology. The project is expected to yield high copper recoveries of 92.2% over the life-of-mine, and allow for spent ore to be used underground as paste fill.

Average production of 72 186 t/y of copper cathode is envisaged during the first 15 years of mining.

Total copper production over the life-of-mine is estimated at 1.36-million tonnes.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
At a base case price of $4.24/lb of copper, the after-tax net present value, at an 8% discount rate, is estimated at $1.38-billion with an internal rate of return of 20%. Payback is estimated at 4.4 years.

Capital Expenditure
Initial project capital is estimated at $1.24-billion.

Ivanhoe Electric is pursuing multiple avenues of funding, including support from US government agencies, commercial lending institutions, and potential strategic partners at the asset level. On April 15, 2025, the company received a letter of interest from the Export-Import Bank of the United States outlining the potential to provide up to $825-million in debt financing with a 15-year repayment tenor under the Make More in America initiative.

Planned Start/End Date
The indicative development plan targets initial construction in the first half of 2026 and first copper cathode production in 2028.

Latest Developments
Railveyor Technologies Global has been selected as the preferred haulage solution provider for the project.

Ivanhoe Electric included Railveyor in its PFS.

Railveyor’s fully electric haulage technology supports mine design flexibility, scalability and sustainable performance, which are critical factors for projects such as Santa Cruz that are committed to low carbon development strategies.

Ivanhoe Electric has highlighted that the project’s base case uses 70% renewable energy. This will result in low Scope 1 and 2 CO₂-equivalent (CO₂e) emissions of 0.49 t of CO₂e/t of copper produced, compared with the industry average of 3.9 t.

Studies on Railveyor’s performance in active mining operations demonstrated that the system reduced mine-wide emissions by up to 39% when compared with diesel trucks.

Railveyor also helps to lower operational costs, reducing operating expenditure by as much as 75%, compared to truck haulage. The value delivered by the Railveyor technology supports the cash costs and low emissions projections of the Santa Cruz operation.

Ivanhoe has noted that Railveyor’s fully electric and autonomous technology is efficient. The narrow gauge light rail system is propelled by low horsepower drive stations located along the haulage route. The company’s software further enhances efficiency, streamlines operations and contributes to a safe and controlled environment with zero emissions.

Key Contracts, Suppliers and Consultants
Fluor (project lead); BBA USA Inc (reserves, underground mine planning and economic analysis consultant); KCB Consultants (heap leaching consultant); Paterson & Cooke USA (paste backfill consultant); Met Engineering (metallurgical testing consultant); INTERA Incorporated (hydrogeology consultant); and Railveyor Technologies Global (haulage solution provider).

Contact Details for Project Information
Ivanhoe Electric, tel +1 604 689 8765 or email info@ivanhoeelectric.com.