The U.S. Export-Import Bank (EXIM) has moved closer to providing $1.1 billion in potential debt financing for Ivanhoe Electric’s Santa Cruz Copper Project in Arizona, marking a significant step toward developing a major new domestic source of copper.
Ivanhoe Electric announced on August 24 that it had received a Preliminary Project Letter (PPL) from US EXIM. The proposed financing is higher than the $825 million in potential support outlined in the bank’s April 2025 letter of interest. The latest PPL follows the completion of EXIM’s preliminary due diligence on the project.
Financing Supports US Copper Supply
The Santa Cruz project is being developed near Phoenix, Arizona, and is designed as an underground copper mining operation. Ivanhoe Electric has applied for financing through EXIM’s Make More in America Initiative, which supports projects intended to expand U.S. production capacity and strengthen strategically important domestic supply chains.
The proposed $1.1 billion financing would represent a substantial portion of the project’s estimated initial capital requirement. A preliminary feasibility study put initial project costs at approximately $1.24 billion and estimated an after-tax net present value of about $1.4 billion, based on a copper price assumption of $4.25 per pound.
Major Copper Project for Arizona
Santa Cruz is planned as a long-life copper operation with an expected 23-year operating period. The project is designed to produce high-purity copper cathode on site, potentially reaching 99.99% purity, without relying on a conventional smelting process.
Ivanhoe Electric plans to advance underground development during 2027, with first ore targeted for the leach pads in the second half of 2028 and initial copper cathode production targeted for the first half of 2029.
Strategic Importance for US Copper Security
The financing proposal comes as the United States seeks to expand domestic supplies of copper and other critical minerals. Copper is essential for electricity transmission, power generation, advanced manufacturing, artificial intelligence infrastructure and electrification.
Ivanhoe Electric Executive Chairman Robert Friedland has described Santa Cruz as a potential major American copper producer capable of supplying U.S. industry while strengthening domestic supply-chain security.
However, the $1.1 billion is not yet a final financing commitment. Ivanhoe Electric said the project remains subject to EXIM’s review and approval process, with final consideration by the EXIM Board anticipated in spring 2027.
If approved, the financing could become a major milestone for Santa Cruz and strengthen efforts to develop a larger domestic U.S. copper industry at a time of rising demand for the metal.