Ivanhoe Electric has received a letter of interest (LoI) from the Export-Import Bank of the United States (EXIM Bank) for potential debt financing of up to $825m to support the development of its Santa Cruz Copper Project located in Arizona.
The indication of support comes under EXIM Bank’s Make More in America initiative, which seeks to strengthen domestic supply chains and reduce reliance on critical mineral imports.
The proposed financing would carry a 15-year repayment term and is subject to further due diligence, including compliance with EXIM Bank’s underwriting criteria, policy standards, and legal requirements.
A final lending decision would depend on completion of these evaluations and fulfilment of all applicable terms and conditions.
The Santa Cruz Copper Project, owned entirely by Ivanhoe Electric, includes indicated mineral resources totalling 226.7 million tonnes at an average grade of 1.24% total copper, representing 2.8 million tonnes of contained copper.
Inferred resources stand at 149 million tonnes with an equivalent grade, amounting to 1.8 million tonnes of contained copper. An initial assessment has projected life-of-mine copper production of 1.6 million tonnes over a 20-year period.
According to Ivanhoe Electric, the Santa Cruz project has been structured to minimise surface land disturbance, which aligns with environmental and regulatory expectations for modern mining developments. Engineering and permitting work is underway, with a preliminary feasibility study expected to be completed in June 2025.
Ivanhoe Electric is aiming to launch initial construction in 2026.
The EXIM Bank is the US’s official export credit agency and provides financial support to companies through various tools, including direct loans, guarantees, and export credit insurance.
Its Make More in America initiative, along with the China and Transformational Exports Program, has been designed to bolster domestic capabilities and enhance national competitiveness in strategic sectors, including critical minerals.
Ivanhoe Electric president and CEO Taylor Melvin said: “As an advanced-stage copper project on private land in the US, 100%-owned by a US company and with the ability to produce pure copper cathode on-site, our Santa Cruz Copper Project is uniquely positioned to meet rising US demand for domestically sourced copper.”
Furthermore, Ivanhoe Electric is exploring other avenues for governmental support, including EXIM Bank’s Supply Chain Resilience Initiative and Section 45X tax credits. The Supply Chain Resilience Initiative provides financing to reinforce access to critical minerals, while Section 45X offers direct tax incentives for their domestic production and processing.
Project development activities are ongoing at the Santa Cruz site, with Fluor serving as the project lead.
Ivanhoe Electric has not yet submitted a formal loan application to EXIM Bank. Any financing agreement will require further negotiations and evaluation by the bank to confirm alignment with its programme requirements and strategic objectives.
