Ivanhoe Electric (NYSE/TSX:IE) has announced the completion of a Preliminary Feasibility Study (PFS) for its Santa Cruz Copper Project in Arizona. The study outlines a high-quality underground mining operation expected to produce pure copper cathode for US consumption. Ivanhoe Electric is an American mining company that combines traditional mineral exploration with advanced geophysical technologies and data analytics to find and develop new resources. The company aims to support US supply chain independence, national security, and the global energy transition.
The PFS details a probable mineral reserve of 136 million tonnes at 1.08% copper, containing 1.5 million tonnes of copper, supporting a 23-year mine life. The project also includes 183 million tonnes at 0.81% copper in indicated resources, exclusive of mineral reserves, holding an additional 1.5 million tonnes of copper. The company has invested over US$100 million since the project’s initial assessment in 2023, focusing on drilling, test work, and engineering studies leading to the PFS, which was released on 23 June 2025.
The Santa Cruz Copper Project, situated on private land in Arizona, benefits from existing infrastructure and a skilled workforce. The PFS anticipates a mining rate of 20,000 tonnes per day, potentially yielding an average of 72,000 tonnes of copper cathode annually during the first 15 years. Initial capital expenditure is projected at US$1.24 billion.
Ivanhoe Electric is actively pursuing project financing through various channels, including US government agencies, commercial lending institutions, and strategic partnerships. The company received a letter of interest from the Export-Import Bank of the United States for potential debt financing of up to US$825 million. Subject to permitting and financing, Ivanhoe Electric plans to commence initial construction in the first half of 2026, with first copper cathode production targeted for 2028.
