The U.S. Copper Dilemma
The U.S. faces a significant challenge when it comes to copper. To put it simply, the nation consumes a lot, but it’s not able to extract enough from its own mines. Ivanhoe Electric has been striving to be the first U.S.-based company to initiate domestic copper operations in over a decade. Yet, even capturing a photo during a price surge felt, well, poorly timed.
Recently, President Trump issued an executive order aimed at adding copper to a list of critical minerals. On July 8th, he declared a 50% tariff on copper imports, set to take effect on August 1st.
Currently, the U.S. produces only about half of its copper needs, placing it fifth among global producers—behind Chile, the Democratic Republic of the Congo, Peru, and China. A significant factor here is that it typically takes around 29 years for a copper mine to begin production due to lengthy permitting processes.
However, Ivanhoe’s Santa Cruz project, located about 40 miles south of Phoenix in Casa Grande, Arizona, aims to be operational by 2028—just eight years after it started.
“From a mining perspective, this timeline is incredibly fast and effective,” stated Taylor Melvin, CEO of the Tempe-based company. “One of our advantages is that our site is on private property in Arizona. This makes for a much smoother permitting process and allows us to get to construction and production more quickly.”
The company conducts core sampling over 6,000 acres to determine the optimal site for mining. The underground operation is expected to yield around 3 billion pounds of copper over the next 23 years. Once it’s up and running, Melvin believes it could rank among the top five or six mines in the U.S.
Another key benefit relates to the extraction methods. There are only two copper smelters in the entire U.S., leading to much of the copper being shipped abroad for processing. Ivanhoe Electric employs leaching techniques at the Santa Cruz site, given the qualities of the ore found there.
“Our site produces pure copper metal that’s ready for U.S. consumers,” Melvin noted.
And it’s clear that demand is on the rise. According to the International Energy Agency, copper demand was around 26 million tonnes in 2024, with projections soaring to about 40 million tonnes by 2050.
However, there’s a pressing issue. Many existing mines are likely to be depleted by that time, and production will inevitably decline unless new mines come on board.
“Copper is an incredibly important metal,” Melvin argued. “It plays a crucial role in various sectors, from enhancing the electrical grid to supporting technology advancements like AI infrastructure. The defense industry also relies heavily on copper. It’s hard to think of another metal that holds as much significance.”
This scenario puts Ivanhoe Rekrik and other U.S. copper firms in a favorable position. The construction of the Santa Cruz project is expected to create about 900 full-time jobs, tapering to 600 during the active mining phase, with many roles offering competitive pay and job security for up to 25 years.
Mining companies are hopeful, especially with Trump’s backing and the potential elevation of copper to a critical mineral status.
“In our 25 years in the copper mining industry, we’ve never encountered such a supportive environment for domestic mining,” Melvin remarked. “We’re at the right place, at the right time, with a U.S.-based project on private land that can fulfill domestic copper needs. It’s an ideal situation for Ivanhoe Electric.”
