Ivanhoe Electric acquires TBM system to advance Santa Cruz copper project, improving tunneling efficiency, safety, and reducing capital costs for development.
Ivanhoe Electric Inc. has announced a strategic move to significantly advance its Santa Cruz Copper Project in Arizona by acquiring a specialized Robbins Crossover XRE Tunnel Boring Machine (TBM) and an integrated material handling system. This acquisition aims to de-risk the project and enhance the efficiency and safety of mine access development through challenging geological conditions.
The purpose-built TBM, initially utilized by Anglo American for its Grosvenor coal mine in Australia, will undergo a comprehensive overhaul and technological upgrade by Robbins, a leading U.S. TBM manufacturer. This state-of-the-art mechanized tunneling technology is specifically designed to handle the variable ground conditions anticipated at Santa Cruz, including hard rock, wet, and mixed-face geology, within a single drive. This eliminates the need for costly and time-consuming machine changes or remobilization, which were associated with previous plans involving roadheaders, silica gel grouting, and a Railveyor system.
Economically, the total cost for the TBM's acquisition and refurbishment is approximately $64.7 million. However, the projected net impact to the initial project capital is expected to be less than $20 million, as the TBM replaces other planned capital expenditures. The deployment of this TBM is crucial for the efficient construction of a 9.3-meter diameter, steel-reinforced concrete tunnel and an integrated conveyor system, supporting both the development and future production phases of the mine. This investment is projected to enable the first copper cathode production in the second quarter of 2029, with the first ore expected on heap leach pads by the fourth quarter of 2028. Ivanhoe Electric is actively pursuing project debt financing, including discussions with the Export-Import Bank of the United States and commercial banks.
From an industry-specific standpoint, this adoption of advanced TBM technology sets a new standard for safety, efficiency, and environmental impact in American copper mining projects. Furthermore, the TBM streamlines the permitting process by eliminating the requirement for a Class V Underground Injection Control permit for silica gel. Ownership of this TBM also provides Ivanhoe Electric with critical infrastructure for long-term flexibility and future expansion opportunities, notably enabling access to the nearby Texaco Deposit, which holds significant inferred copper resources. The development timeline outlines box cut excavation in Q3 2026, TBM assembly in early 2027, and decline development commencing in Q3 2027.
