Santa Cruz Copper Project with a strong Preliminary Feasibility Study

Ivanhoe Electric Inc. have made a press release where it has announced the completion of the Preliminary Feasibility Study for the Santa Cruz Copper Project in Arizona known as the „Copper State.” This project is positioned to redefine copper mining in the U.S. by leveraging the innovative Santa Cruz Method, a sustainable and efficient approach to mining and processing copper.

Santa Cruz Copper Project

The Santa Cruz Copper Project is located approximately 40 miles southeast of Phoenix, Arizona in Casa Grande on nearly 6,000 acres of 100%-owned private land, including surface, mineral. This mining project is considered the largest high-grade copper oxide orebody in America. Santa Cruz hosts 136 million tonnes of Probable Mineral Reserves with an average grade of 1.08% copper, supporting a 23-year mine life.  A 20,000 tonnes/day operation utilizing advanced mining technologies and heap leach processing, ensuring a cleaner, more efficient process. Moreover it will produce LME grade A 99.99% pure copper cathode directly onsite, no polluting smelters or international shipping required.

Key information

With C1 cash costs of $1.32/lb, Santa Cruz is among the lowest-cost copper producers globally and the most cost-efficient in America. Moreover at a base case price of $4.25/lb copper, the project boasts an after-tax NPV of $1.4 billion and an IRR of 20%, with even more impressive metrics at current copper prices.

Critical for national security

Executive Chairman Robert Friedland and President and Chief Executive Officer Taylor Melvin emphasized the critical role of Santa Cruz in bolstering the U.S.’s domestic supply of copper, the „king of metals,” essential for defense, technology, and energy industries. As one of the first new U.S. copper mines in a generation, Santa Cruz is setting the standard for clean, secure, and strategic mining. He has stated: “Given global conflicts that concern us all, the United States is now awake to the urgent national security imperative to restore domestic American mineral production to the scale of the American economy. Our government, industry, and defense establishment clearly recognize the paramount importance of having a secure, domestic supply of all critical minerals in the 21st century, including copper. The skillsets and government support required to mine copper, the king of metals, are the same skillsets required to mine any and all elements on the periodic table. Our Santa Cruz Copper Project is at the leading edge of this resurgence – as one of the first new copper mines that will be opened in the United States in a generation…right in the heart of Arizona – “the Copper State”, with its burgeoning automotive, defense, and technology industries…including the likes of Lucid Motors and Taiwan Semiconductor Manufacturing Company. A simple Google search will show anyone there are over 1,250 aerospace and defense-related companies in the state of Arizona alone.”. Moreover, Robert Friedland has expressed his gratitude for the support of our long-term supportive investor. He added: “Our progress to date could not have been achieved without the support of our long-term supportive investors, such as Saudi Arabia’s Maaden and BHP, the world’s largest mining company, and several of the world’s top institutional investors who understand the urgent need for domestic copper production.

Design with sustability approach

Santa Cruz is designed with sustainability in mind for low-impact mining with spent ore repurposed as underground paste backfill and with 92.2% copper recovery using a simplified, chloride-assisted heap leaching process.

Key dates

The project is expected to start in the first half of 2026 and targets the copper cathode production for 2028. Moreover the project’s strategic location in Arizona, excellent infrastructure, and skilled workforce pave the way for rapid progress. Ivanhoe Electric is actively securing financing, including a Letter of Interest from the Export-Import Bank of the United States for up to $825 million in debt financing.