Ivanhoe Close to Inking $1.1 Billion Loan from Exim Bank

Ivanhoe Electric, a mineral exploration and extraction firm, may soon secure $1.1 billion in debt financing from the U.S. Export-Import Bank for the development of its Santa Cruz copper project in Arizona. The project is located roughly 65 kilometers southeast of Phoenix and is expected to become one of the first major new copper mines in the U.S. in nearly two decades. This comes as demand for the red metal continues to rise globally. 

Just recently, the U.S. Export-Import Bank (EXIM) increased the potential loan by roughly one-third from the amount outlined in its letter of interest from last year, following completion of its preliminary due diligence. 

The financing development comes shortly after President Donald Trump expressed support for funding Santa Cruz during a mining roundtable at the State Department earlier this month. 

Robert Friedland, the company’s Executive Chairman, said the project is designed to produce pure copper metal without conventional smelting, helping strengthen domestic supply chains as demand rises from electricity infrastructure, artificial intelligence, advanced manufacturing and national security. 

This is a good move for the company, which combines advanced mineral exploration technologies with electric metals exploration projects. The project has an estimated initial capital requirement of $1.24 billion based on a preliminary feasibility study conducted in 2025. The study projected annual copper production of about 72,000 tons during the first 15 years of the mine’s life. 

At the start of this week, Ivanhoe shares rose about 1% to $16.03 in Toronto, valuing the company at approximately $1.8 billion. The stock has traded between $11.00 and $28.81 over the last year, with Taylor Melvin describing the EXIM letter as a major step toward securing the project’s debt financing. 

Ivanhoe expects to release an updated preliminary feasibility study next month. The revision will incorporate plans for underground access using a tunnel-boring machine, alongside further engineering and development work. 

Site preparation has already begun, including road clearing, fencing and portal excavation. Box-cut construction is also expected to start soon, while the tunnel-boring machine is scheduled for assembly in the first half of 2027. 

The company plans to begin underground development in mid-next year, with the expectation that they will reach the copper reserve about a year later and place the first ore on leach pads in the second half of 2028. By 2029, the company expects to have begun initial cathode production. 

Ivanhoe has secured several permits for early-stage activities and is pursuing the remaining approvals required for surface construction and full production. 

With concerns about copper supply rising as the months go by, the exploration activities of companies like Collective Mining Ltd. (NYSE American: CNL) (TSX: CNL) could attract growing attention as savvy investors seek to acquire stocks of companies poised to meet the future demand for several critical and strategic minerals. 

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