Under the wave of “copper grabbing” in data centers, the top new copper ore in the US in the hands of Ivanhoe Electric (IE.US) became a “bastard”

The Zhitong Finance App learned that as the rapid expansion of data centers and power grids boosts copper demand, mineral exploration and development company Ivanhoe Electric (IE.US) is in in-depth discussions with potential buyers on copper production for its Arizona project.

CEO Taylor Melvin said in an interview that copper from the Santa Cruz (Santa Cruz) mining project has attracted the interest of traditional traders and potential strategic partners seeking to secure supplies for the US industry. He declined to disclose the names of the parties involved in the negotiations.

In the race to build infrastructure for artificial intelligence, global copper supply is tightening, and copper prices are hovering near historic highs. Ivanhoe Electric, founded by mining billionaire Robert Friedland, owns a number of mining projects, including Santa Cruz, and is cooperating with the US government's export credit agency on a $1.1 billion debt financing package for the mine.

Melvin said that as global demand for copper will grow more than supply, America's demand for new domestic production capacity is particularly urgent.

The CEO said, “To fill this gap, we need far more than just a Santa Cruz project.”

He added that the offtake agreement for the Santa Cruz project may include financing arrangements. In addition to the debt deal proposed by the Export-Import Bank of America, Ivanhoe Electric is also discussing project financing with about a dozen commercial banks.

With the rapid settlement of new data center deals, large cloud computing service providers with intensive copper demand have begun to lock in future supply. The process, which can speed up copper production, is very attractive to buyers.

Earlier this year, Amazon agreed to buy copper from a Gunnison Copper mine in Arizona. The copper is produced using Rio Tinto Group's proprietary leaching technology without traditional smelting and refining, and will eventually be used in Amazon's data centers.

Melvin said that Santa Cruz will use a relatively novel on-site process in the US to produce cathode copper, bringing buyers one step closer to products such as raw materials, cables, and copper foil. Ivanhoe has been promoting this process as part of its low-emission operation plan.

The first phase of the mine is expected to cost $1.4 billion and aims to achieve the first output by 2029. Melvin said that when combined with neighboring resources, Santa Cruz is expected to become one of the top copper producing regions in the US.