ExpansionMay 11, 2026, 07:12 AM
Ivanhoe Electric to Acquire TBM for Santa Cruz Copper Project
AI Summary
Ivanhoe Electric Inc. announced its intention to acquire a Crossover XRE Tunnel Boring Machine (TBM) and material handling system from The Robbins Company for decline development at its Santa Cruz Copper Project in Arizona. The acquisition, costing approximately $64.7 million with a net impact of less than $20 million on initial project capital, is expected to de-risk the project by providing a proven mine access method and enhancing safety and efficiency. The TBM is anticipated to arrive in Q1 2027, with decline development starting in Q3 2027 and first copper cathode production by Q2 2029. The company will also host an investor call to discuss these updates.
Key Highlights
- Ivanhoe Electric intends to acquire a Crossover XRE Tunnel Boring Machine (TBM) and material handling system from The Robbins Company.
- The acquisition cost of the TBM and material handling system, including refurbishment, is approximately $64.7 million.
- The net impact to initial project capital of implementing the TBM system is projected to be less than $20 million.
- Arrival and assembly of the TBM is expected to begin onsite in Arizona in Q1 2027.
- Decline development is scheduled to begin in Q3 2027, with first copper cathode production anticipated in Q2 2029.
- An updated preliminary feasibility study incorporating the TBM system is expected to be completed during Q3 2026.
- The company is in advanced stages for project debt financing with the Export-Import Bank of the United States.
- The TBM acquisition eliminates the need for a Class V Underground Injection Control permit for silica gel.