Copper may as well be the new gold rush in a certain state of the U.S. This metal happens to be of much importance now due to the role it plays in clean energy, in addition to a host of other things. The fact is that its demand is booming, and now a project pertaining to generational proportions could very well see this unlikely mineral ignite a completely new era when it comes to the mining industry in America.
How the copper rush is going to revitalize the mining industry in America
Requirements when it comes to copper have been growing in America. The U.S., apparently, imports almost 50% of its needed copper. This is indeed a massive dent, as the metal is getting used in so many ways, right from the production of electric vehicles to the grid infrastructure and its maintenance. Copper is witnessing a rise in demand across the world; however, the need to mine this metal across safer regions having formidable legal frameworks is also seeing a growth along with its demand.
This latest copper development project happens to be garnering a lot of attention, as its scale looks large, having an estimated haul of billions of pounds. The mining industry in America has not seen the immensity of a project such as this in decades.
The state that could very well change everything
This project, apparently, is going to break ground near Casa Grande, which is almost 40 miles southeast of Phoenix, based in the state of Arizona.
The major appeal happens to be that the site happens to be located on private land, which is, by the way, easier to deal with vis-Ã -vis state-owned or federal property. Ivanhoe Electric happens to be leading the Santa Cruz Copper Project, and there are early reports as well as estimations that are coming in that refer to this project holding major economic benefits.
It is well to be noted that a whopping three billion pounds of copper can very well get mined over 23 years if everything goes as per the plan. Construction happens to be scheduled to begin in 2026, with the very first copper to be harvested in 2028, which could very well do wonders for America and, of course, the state of Arizona.
How is the Santa Cruz Copper Project going to work?
This particular project is going to lend itself well to the heap-leach approach wherein the cathode copper can get extracted on-site. This will go on to save the costs since the copper ore will not have to be shipped to a secondary site when it comes to smelting and extraction. The feasibility evaluation went on to involve 149 drilled holes, which is almost 12,000 meters, so as to further establish the choice when it comes to the mining approach.
It is worth noting that the financing when it comes to the Santa Cruz Copper Project has started to materialize, with the U.S. Export-Import Bank in discussions with Ivanhoe Electric so as to offer almost $825 million in terms of debt financing. The estimated returns look enormous, with the preliminary feasibility report stating that this copper project can be as viable, if not more so, as compared to many similar projects located across the world.
The returns, risks, and effects of this copper project
Interestingly, the Santa Cruz Copper Project is going to have to navigate through certain barriers that are away from the mechanics of mining the copper, which would very well seem to be primed to start. Apparently, the state of Arizona is going to have to manage a slice of the burden that comes with being the site as far as this copper project is concerned, and this would mean dealing with disruption to the habitat and access in terms of water and surface rights as well as tailings management. All of which happen to be the potential points of issues and challenges that need to be taken care of.
Apparently, this copper project is going to help the U.S. in navigating clear of depending on importing copper coming from various regions of the world having political practices that look murky. This project, apparently, is also going to test if large-scale mining could be done while at the same time adhering to ideals in terms of sustainability, extracting minerals as rapidly as possible, and doing so without causing any sort of harm to the surrounding community. There is no doubt in the fact that the world is going to be watching this very closely.
The point is that if the Santa Cruz Copper Project succeeds, it could very well galvanize copper production across America. Supply chains could be disrupted as well as reshaped, whereas a renewed stress on the mineral sovereignty can be enjoyed by the U.S. All this is still to be seen; however, the advantages are sure to do incredible things for the U.S. provided the said copper project does not falter.