Copper might be the new gold rush in a certain state. This metal is of much importance now because of the role it plays in clean energy, among a host of other things.. The demand is booming, and now a project of generational proportions could see this unlikely mineral ignite a new era of mining in America.
How the copper rush will rejuvenate the American mining industry
A need for copper has been growing in America. The country imports nearly half of its needed copper. This is a vast dent as the metal is used in so many ways, from the production of electric vehicles to grid infrastructure. Copper is seeing a rise in demand globally, but the need to mine this metal in safer regions with formidable legal frameworks is growing along with its demand.
This latest copper development project is garnering a lot of attention as its scale is large, with an estimated haul of billions of pounds. The American mining industry has not seen the immensity of a project like this in decades.
The state that could change everything
This project will break ground near Casa Grande, which is around 40 miles southeast of Phoenix in Arizona. The major appeal is that the site is located on private land, which is always easier to deal with than state-owned or federal property. Ivanhoe Electric is leading the Santa Cruz Copper Project, and early reports and estimations allude to this project having significant economic benefits.
A staggering three billion pounds of copper could be mined over 23 years should everything go according to plan. Construction is scheduled to start in 2026, with the first copper to be harvested in 2028, which could do wonders for America and the state of Arizona.
How the Santa Cruz Copper Project will work
This particular project will lend itself well to the heap-leach approach in which cathode copper can be extracted on-site. This will save on costs as the copper ore will not need to be shipped to a secondary site for smelting and extraction. The feasibility assessment involved 149 drilled holes, which is around 120,00 meters, to further cement the choice of mining approach.
The financing for the Santa Cruz Copper Project has also begun to materialize, with the U.S. Export-Import Bank in talks with Ivanhoe Electric to provide up to $825 million in debt financing. The projected returns are through the roof, with the preliminary feasibility report showing this copper project could be as viable, if not more so, than similar projects around the world.
The rewards, risks, and impact of this copper project
The Santa Cruz Copper Project will have to navigate some challenges away from the mechanics of mining the copper, which would seem to be primed to begin. The state of Arizona will have to manage part of the burden that comes with being the site for this copper project, and this will mean dealing with habitat disruption, access to water, surface rights, and tailings management. All of which are potential points of contention.
This copper project will aid the U.S in steering clear of relying on importing copper from regions of the world with murky political practices. This project will also test whether large-scale mining can be done while adhering to ideals of sustainability, extracting minerals quickly, and doing so without harming the surrounding community. The world will be watching closely.
If the Santa Cruz Copper Project succeeds, it could galvanize copper production in America. Supply chains could very well be disrupted and reshaped, while a renewed emphasis on mineral sovereignty could be enjoyed by America. All this remains to be seen, but the benefits are surely to do remarkable things for America, provided this copper project does not fail.