What's Happening?
Ivanhoe Electric Inc. has announced its intention to acquire a Crossover XRE Tunnel Boring Machine (TBM) and material handling system from The Robbins Company, based in Solon, Ohio. This acquisition is aimed
at facilitating mine access development at the Santa Cruz Copper Project in Arizona. The Robbins TBM, previously used at the Grosvenor coal mine in Queensland, Australia, will be employed for decline development at the Santa Cruz site. Ivanhoe Electric identified the opportunity to acquire the TBM in late 2025 and secured a legally binding option in March 2026, following extensive due diligence and trade-off studies. The acquisition is expected to enhance the efficiency and safety of underground tunnel development, crucial for accessing high-grade ore bodies at the Santa Cruz project.
Why It's Important?
The acquisition of the Robbins TBM is significant for Ivanhoe Electric as it represents a strategic investment in advanced tunneling technology, which is expected to streamline the development of the Santa Cruz Copper Project. This project is poised to become a major source of refined copper for the U.S. market, supporting industries such as technology and national defense. The use of the TBM is anticipated to reduce costs and risks associated with traditional mining methods, thereby enhancing the project's economic viability. Additionally, the acquisition aligns with Ivanhoe Electric's goal of contributing to American supply chain independence by developing domestic resources of critical metals.
What's Next?
Following the acquisition, Ivanhoe Electric plans to begin the assembly of the TBM on-site in Arizona in the first quarter of 2027, with decline development scheduled to start in the third quarter of the same year. The company aims to complete the excavation of a four-kilometer-long decline within approximately twelve months. Concurrently, Ivanhoe Electric is advancing its project financing process, including applications for debt financing with the Export-Import Bank of the United States and discussions with commercial banks. The first production of copper cathode is anticipated by the second quarter of 2029, marking a significant milestone in the project's timeline.
