Financing the First Significant US Copper Mine in Two Decades

Roughly 80 million years ago, volcanic activity in Arizona brought massive copper deposits to the surface. Today, these copper reserves remain essential for US global market competition and domestic infrastructure development, particularly supporting the necessary growth and transformation of the US energy grid. Arizona continues to be the largest copper-producing state in the US, contributing nearly 70% of domestic supply.

Copper is a vital resource for critical infrastructure and technological advancement. It underpins energy-intensive AI and computing infrastructure, including data centers, and is essential for renewable energy solutions such as solar panels and wind turbines. 

With demand for renewables, data centers and other AI infrastructure surging, global copper consumption is projected to increase by 2 million tons by 2030, with the U.S. accounting for more than half of this growth. This demand has put mounting pressure on domestic supply, potentially risking higher costs for industries that rely on copper and slowing the transition to renewable energy or the scale-up of AI implementation and other national security infrastructure. 

First significant new American copper mine in nearly two decades

In response, Ivanhoe Electric, through its wholly owned subsidiary Mesa Cobre Holding Corporation, is developing the Santa Cruz Copper Project, the first significant new American copper mine to be constructed in nearly two decades. Societe Generale is among the international financial institutions that led a USD 200 million bridge facility to support initial construction activities and working capital as part of Ivanhoe Electric’s broader long-term project financing strategy. 

The Santa Cruz Copper Project is designed to produce LME Grade copper cathodes¹, with first production targeted for late 2028. The project is designed to deliver copper directly to US consumers and contribute to domestic supply chain security.

Societe Generale has established itself as a leader in global copper mining finance. It led a EUR 375 million deal for the construction of the El Espino copper mining project in Chile in 2025. 

The Emerging Leaders initiative at work

Societe Generale included in its strategic roadmap the strengthening of its contribution to the energy transition, notably through the launch of a dedicated envelope. This Emerging Leaders initiative aims to support the emergence of new players, the development of new technologies, and the deployment of innovative solutions to drive the transition toward a low-carbon economy.

The Santa Cruz project is the first transaction in the Americas for Societe Generale under this initiative. 

“Copper is the backbone of critical technology, power and national defense infrastructure in the US. Financing domestic mining projects like Santa Cruz is essential to supporting US economic growth and leadership across key industries including AI and renewables and ensuring domestic supply chain independence,” said Alvaro Belevan, a senior banker in Societe Generale’s Battery, Mining and Industries group. “We are proud to support Ivanhoe Electric and its shareholders in their mission to advance this landmark project.” 
 

 ¹LME grade copper cathode is a high-purity copper product (purity of 99.99% or higher) that is of sufficient quality for direct industrial applications