Ivanhoe Electric prepares to open Arizona's first new copper mine in over a decade

In the United States, a significant challenge is emerging due to the rising demand for copper, which is surpassing domestic supply. Currently, the U.S. ranks fifth in global copper production, trailing behind countries such as Chile and China, and generates only about half of the copper it consumes. The situation has become more pressing as many existing mines are expected to be depleted in the coming years, necessitating the development of new mining operations to meet future demands, which are projected to rise dramatically. As a response to this looming crisis, Ivanhoe Electric is taking substantial steps toward addressing the copper supply gap. The company has initiated plans for its Santa Cruz Project, located roughly 40 miles south of Phoenix in Casa Grande, Arizona. This project aims to become the first new copper mine in the U.S. in more than a decade following a lengthy period where few new mines have been established. Notably, the project is structured to facilitate a much more efficient permitting and approval process, which has historically been a significant barrier for new mining operations in the country. In March, an executive order was issued by President Donald Trump to classify copper as a critical mineral, an action designed to help expedite the permitting process and provide tax benefits for companies involved in mining activities. The mine is expected to begin production in 2028, illustrating a more expedited timeline than the average, which can often extend for decades. Ivanhoe Electric's mine has the potential to yield nearly 3 billion pounds of copper over a 23-year period, which is crucial given that global copper consumption is predicted to reach close to 40 million tons by 2050. The approach to copper extraction will employ a leaching method tailored to the specific characteristics of the ore at the Santa Cruz site. As domestic demand for copper continues to grow, so does the urgency among U.S. miners to establish new sources of production. The current environment is regarded as highly supportive for domestic mining, providing optimism for Ivanhoe Electric and similar companies. The prevailing sentiment among industry experts is one of eagerness to meet rising demands while enhancing the electrical infrastructure, supporting new technologies, and ensuring resources for defense initiatives.