Ivanhoe Electric has secured significant support for its Santa Cruz Copper Project in Arizona. EXIM Bank has expressed interest in providing up to $825 million in debt financing. This funding aims to help Ivanhoe Electric develop its copper mining operations, strengthening the U.S. domestic supply of critical minerals.
EXIM Bank Financing Details
The EXIM Bank has issued a letter of interest (LoI), offering up to $825 million in financing, with a 15-year repayment term. This financing is part of the Make More in America initiative, which aims to enhance U.S. supply chains and reduce reliance on foreign critical minerals. Nevertheless, the financing remains contingent upon due diligence and full compliance with EXIM Bank’s standards. Furthermore, while the LoI marks a positive step, Ivanhoe Electric still needs to meet several conditions before receiving final approval, including additional due diligence.
About the Santa Cruz Copper Project
Ivanhoe Electric owns 100% of the Santa Cruz Copper Project, located in Arizona. The project includes 226.7 million tonnes of indicated mineral resources, with an average copper grade of 1.24%. This translates into 2.8 million tonnes of contained copper. Additionally, 149 million tonnes of inferred resources are estimated, containing 1.8 million tonnes of copper.
The project aims to produce 1.6 million tonnes of copper over a 20-year mine life. Ivanhoe Electric is committed to minimizing environmental impacts by designing the project with minimal surface land disturbance. Engineering and permitting work are ongoing, with the preliminary feasibility study set for completion by June 2025.
Ivanhoe Electric’s Strategic Goals for U.S. Copper Production
Taylor Melvin, President and CEO of Ivanhoe Electric, emphasized the project’s critical role in meeting rising demand for domestically sourced copper. The project, located on private land, can produce pure copper cathodes on-site, giving it a competitive edge in the U.S. copper market.
Beyond EXIM Bank financing, Ivanhoe Electric is exploring other governmental support avenues. These include Section 45X tax credits, which provide incentives for domestic production of critical minerals, and the Supply Chain Resilience Initiative, aimed at strengthening the supply of key materials.
EXIM Bank’s Role in U.S. Industry Support
As the U.S. export credit agency, EXIM Bank plays a key role in strengthening U.S. industry. It provides financial support through direct loans, guarantees, and export credit insurance. Through initiatives like Make More in America, EXIM Bank helps increase U.S. competitiveness in sectors like critical minerals.
The Santa Cruz Copper Project is poised to begin initial construction in 2026. With Fluor serving as the project lead, the project marks a significant step toward enhancing U.S. copper production.
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