Facing a growing shortfall in domestic copper production, Ivanhoe Electric is fast‑tracking the development of the Santa Cruz Copper Project. If realized, this would be the first new U.S. copper mine to reach production in over a decade.
Located on nearly 6,000 acres of privately owned land about 40 miles southeast of Phoenix, the project benefits from excellent infrastructure and streamlined permitting. Initial construction is targeted for the first half of 2026, with first copper cathode production expected in 2028.
Ivanhoe’s Preliminary Feasibility Study released in June projects production of approximately 3 billion pounds of copper cathode over a 23-year mine life, with average annual output of about 72,000 tonnes in the first 15 years. The study estimates a low initial capital cost of around $1.24 billion, a life‑of‑mine cash cost of $1.32 per pound, and an after‑tax net present value of up to $1.9 billion with a 24 percent internal rate of return at current copper prices.
The project’s significance is amplified by the rising U.S. demand for copper, which stood near 26 million tons in 2024 and is expected to approach 40 million tons by 2050. Currently, about half of that demand is met through imports, as the U.S. operates only two smelters and exports nearly 30 percent of its mined copper for overseas processing.
A key innovation of the Santa Cruz project lies in its on-site heap leaching and solvent-extraction/electrowinning process, which enables production of 99.99 percent pure copper cathode directly at the mine. This approach bypasses the need for limited domestic smelting capacity and supports faster permitting.
Federal support has also helped propel the project forward. A March executive order designated copper as a strategic “critical mineral,” and from August 1, a 50 percent tariff on copper imports is set to take effect—policies aimed at boosting domestic production and decreasing foreign dependence.
The project is expected to generate hundreds of high-paying jobs, including around 900 full-time positions during construction and approximately 600 during operations. Many of these roles are expected to pay six-figure salaries. This economic activity is poised to strengthen U.S. supply chain resilience in clean energy, electric vehicles, semiconductor manufacturing, and defense.
Ivanhoe Electric is currently pursuing project financing, including up to $825 million in potential support from the U.S. Export‑Import Bank. The financing would come through federal initiatives such as the Supply Chain Resilience Initiative and Section 45X tax credits designed to expand domestic processing of critical minerals.
The Santa Cruz Copper Project represents a significant step toward strengthening American mineral independence. Its scale, innovative processing method, and supportive regulatory environment position it as a key contributor to national security and the clean energy transition.
