News Summary
Ivanhoe Electric is advancing its Santa Cruz Project in Arizona, planning to open a new copper mine that aims to produce nearly 3 billion pounds of copper over 23 years. This project stands out as the first U.S. copper mine in over a decade, benefiting from a fast-tracked permitting process on private land. With rising domestic demand for copper, especially for electric vehicles and renewable energy technologies, the project could bolster U.S. production and create approximately 900 jobs, solidifying its importance for the economy and future supply.
Arizona is poised to see the opening of a new copper mine, as Ivanhoe Electric advances its Santa Cruz Project, which aims to start production by 2028. This makes Ivanhoe Electric the first U.S.-based company to open a copper mine in the country in over a decade. Located in Casa Grande, about 40 miles south of Phoenix, the mine is projected to produce nearly 3 billion pounds of copper over the next 23 years.
The Santa Cruz Project benefits from a streamlined permitting process due to its location on private land, which allows for quicker advancement compared to the typical lengthy permitting process that averages 29 years for copper mines in the U.S. This efficiency could position it among the top five or six copper producers nationwide, meeting growing domestic demand.
Currently, the United States produces only about half of its copper consumption, ranking fifth in global production behind countries like Chile, Peru, and China. With an increasing demand projected by the International Energy Agency, U.S. copper needs are expected to rise from approximately 26 million tons in 2024 to nearly 40 million tons by 2050.
The extraction method for the Santa Cruz Project will involve leaching instead of smelting. This method allows for the production of pure copper metal directly suitable for domestic use, which could alleviate some of the pressure on existing copper resources. The existing copper mines in the U.S. are anticipated to be depleted by 2050, raising concerns about future supply shortages, and underlining the importance of new projects like Santa Cruz.
The project is not only crucial for copper supply but also for job creation. During construction, it is expected to create approximately 900 full-time jobs, with around 600 positions remaining during the mining phase. The compensation for these jobs is anticipated to be predominantly six-figure salaries, secured for the next 25 years, providing economic benefits to the region.
A notable aspect of the Santa Cruz Project is the supportive environment for mining, augmented by bipartisan support and local approval, with 87% of Casa Grande residents in favor of the mine. The growing demand for copper, particularly driven by electric vehicles, renewable energy systems, and advancements in technology, heightens the significance of the project.
In a recent shift, President Donald Trump has pledged a 50% tariff on copper imports starting August 1, aimed at bolstering domestic production and reducing reliance on foreign sources. This political gesture adds to the urgency of developing new domestic mining projects like the Santa Cruz Project.
Despite the opportunities presented by the Santa Cruz Project, challenges remain for the U.S. copper industry. Currently, the country has only two domestic copper smelters in operation, both of which are already operating at full capacity. The Santa Cruz Project represents a crucial opportunity to address the bottlenecks in copper supplies amid surging demand driven by technological innovations and national energy goals.
As Ivanhoe Electric continues to develop the Santa Cruz Project, its timely emergence may play a pivotal role in securing the future of copper production in the United States and meeting the anticipated higher demand in the years to come.
Deeper Dive: News & Info About This Topic
- ABC15 News
- Wikipedia: Copper
- Fox Business
- Google Search: Santa Cruz Project
- AInvest
- Google Scholar: Copper Mining in the US
- Pinal Central
- Encyclopedia Britannica: Copper Mining
- Business Wire
- Google News: Copper Industry in USA
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
