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Aug. 25, 2026 10:25AM PST
The federal backing accelerates the development timeline for what could become the first major new American copper mine in nearly two decades.
Sergey / Adobe Stock
Ivanhoe Electric (NYSE AMERICAN:IE,TSX:IE) announced it has secured a US$1.1 billion preliminary debt financing package from the US Export-Import Bank to develop the Santa Cruz copper project in Arizona.
The Preliminary Project Letter increases the federal agency's potential funding by US$275 million compared to an initial April 2025 Letter of Interest.
The support materialized just weeks after US President Donald Trump publicly endorsed financing the Arizona project during an August 7 mining roundtable at the State Department.
Ivanhoe applied for the funding through the bank's Make More in America Initiative, a program designed to strengthen domestic supply chains and expand domestic production capacity.
“Our country has entered an extraordinary era of demand growth for copper, which is central to all forms of electricity generation, transmission and consumption as well as advanced manufacturing, artificial intelligence, and our national security.” Ivanhoe Executive Chairman Robert Friedland said in a recent press release.
“At Santa Cruz, we are building a modern American copper mine capable of producing 99.99 percent pure copper metal, without a smelting process, to support American industry and supply chain security,” Friedland added.
The US$1.24 billion Santa Cruz project sits on 6,000 acres of privately owned surface, mineral, and water rights, shielding the development from the prolonged permitting timelines typically associated with federal or state land.
A June 2025 pre-feasibility study outlined a 23-year mine life producing 1.4 million tons of copper cathode. The facility will utilize on-site heap leaching to extract the metal, targeting 92 percent life-of-mine recovery rates while bypassing traditional smelting.
Ivanhoe expects to release an updated pre-feasibility study in September 2026, where the revised economic assessment will detail underground access plans. The company aims to commence construction in the first half of 2026, with first copper production projected for 2028.
Ivanhoe shares rose 1 percent to US$16.03 in Toronto following the Monday (August 24) announcement.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
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Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
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