US Copper Problem and the Santa Cruz Project
The US faces a significant copper problem. The consumption rate surpasses the speed of extraction from American mines. However, Ivanhoe Electric is addressing this issue, working towards becoming the first US-based company to open a domestic copper mine in over a decade. The escalating copper prices underscore the perfect timing of this endeavor.
American Copper Production in a Global Context
Despite being a heavy consumer, the United States only produces about half the copper it uses, ranking fifth in the world for copper production. Core copper producers like Chile, Democratic Republic of Congo, Peru, and China outstrip American production. However, the US ranks lower due to the time it takes for copper mines to begin production, typically 29 years due to lengthy permitting and approval processes. But Ivanhoe Electric’s Santa Cruz Project is set to change this trend.
Santa Cruz Project: A Game-Changer in US Copper Production
The Santa Cruz Project run by Ivanhoe Electric, located about 40 miles south of Phoenix in Casa Grande, Arizona, is on track to be operational by 2028. This is incredibly efficient in mining terms, considering that it began just eight years ago. Taylor Melvin, president and CEO of the Tempe-based company, attributes part of the success to the project being on private land in Arizona. This strategic location has enabled a streamlined permitting process, accelerating its construction and production.
Revolutionizing Copper Extraction
The US hosts only two copper smelters, causing much of the domestically mined copper to be shipped overseas for processing. Nevertheless, Ivanhoe Electric is revolutionizing the extraction process by using leaching, thanks to the nature of the ore found at the Santa Cruz mine site. As such, Ivanhoe Electric will be producing pure copper metal on-site, ready for consumption by US consumers.
Increasing Copper Demand vs. Depleting Mines
According to the International Energy Agency, the demand for copper is expected to rise from 26 million tons in 2024 to almost 40 million tons in 2050. However, many mines are projected to be empty by then, indicating that copper production is likely to decrease unless new mines are established. This situation puts Ivanhoe Electric and other US copper companies in a strong position to meet this rising demand.
Expanding the American Copper Mining Industry
The projected construction of the Santa Cruz project will employ 900 full-time workers, reducing to around 600 after completion and during the mining phase. These jobs, many of which will offer six-figure salaries, are virtually assured for the next 25 years. With such promising prospects, the future of the American copper mining industry looks increasingly positive.
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