Ivanhoe Electric has received a letter of interest from the Export-Import Bank of the United States (EXIM Bank) indicating the possibility of providing up to $825m in debt financing for the development of the Santa Cruz Copper Project in Arizona, US.
The Santa Cruz Copper Project, with Fluor as the project lead, covers 5,975 acres of private land and includes associated water rights.
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It is estimated to contain indicated mineral resources of 226.7 million tonnes (mt) grading 1.24% total copper and inferred resources of 149mt grading 1.24% total copper.
The proposed financing, with a 15-year repayment period, aligns with EXIM Bank’s Make More in America initiative.
The initiative, along with the China and Transformational Exports Programme, aims to enhance US competitiveness, bolster supply chains and address strategic vulnerabilities.
The Santa Cruz Copper Project qualifies for this initiative as it supports the domestic production of critical minerals, contributing to economic growth and national security, Ivanhoe said.
Ivanhoe Electric is evaluating EXIM Bank’s expression of interest alongside other financing options for the project.
Ivanhoe Electric executive chairman Robert Friedland said: “Receipt of the Export-Import Bank of the United States’ Letter of Interest underscores the importance of our Santa Cruz Copper Project to grow domestic copper production.
“The United States urgently needs more domestically produced copper to support the rapid expansion and rebuilding of its electric transmission and transportation infrastructure, national defence capabilities and technologies of the future.
“Santa Cruz is positioned perfectly to be a source of pure copper cathode to help the US achieve its strategic mission of greater self-reliance on domestic production of critical metals.”
The project is also being considered for additional government support programmes such as EXIM Bank’s Supply Chain Resilience Initiative and the Section 45X advanced manufacturing production tax credit.
These initiatives provide financial tools and tax incentives to strengthen the US’ critical mineral supply chains.
Should Ivanhoe Electric submit a formal application, EXIM Bank will conduct the necessary due diligence to determine if a final lending commitment is feasible.
Ivanhoe plans to complete a preliminary feasibility study for the project by June 2025 with initial construction scheduled to commence in the first half of 2026.
In August 2024, Ivanhoe secured 100% ownership of the mineral rights at the Santa Cruz Project after paying the final $10m, as stipulated by an option deal.
