Name of the Project
Santa Cruz underground copper mine.

Location
Arizona, in the US.

Project Owner/s
Copper developer 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
Ivanhoe Electric has secured credit approvals from a syndicate of three international lenders for a $200-million senior secured multidraw bridge facility to support early works.

The facility, arranged by National Bank Capital Markets, Société Générale and BMO Capital Markets, will provide liquidity for initial construction and working capital needs as part of the company’s wider project financing strategy.

Closing is expected in December, subject to final documentation and customary conditions.

Ivanhoe Electric is also in advanced talks with potential minority partners and long-term lenders, including the US Export-Import Bank, which issued an $825-million letter of interest in April.

Executive chair Robert Friedland has said the credit approvals signal strong support from major mining financiers as the company progresses what could become one of the first new US copper mines in nearly two decades. 

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.