Ivanhoe Electric is moving quickly to develop what could be the first major new US copper mine in over a decade, targeting a 6,000-acre site of former farmland in Arizona. If the plan holds, construction at the Santa Cruz mine could begin next year, with copper production and sales anticipated by late 2028—a rapid timeline in an industry known for lengthy delays, the Wall Street Journal reports. The development comes at a pivotal time. US copper prices have soared, partly driven by President Trump's pledge to impose a 50% tariff on copper imports starting Aug. 1.

Analysts expect these tariffs, coupled with growing demand from industries such as electric vehicles, renewable energy, and data centers, to keep prices high. Several factors are speeding up the Arizona project. The land, privately owned and situated between Phoenix and Tucson, avoids many of the regulatory hurdles that typically slow mining developments, especially those on public lands. This, combined with robust investor interest and a streamlined permitting process, has given Ivanhoe Electric an edge.

In a Truth Social post last week, Trump vowed that America will "build a DOMINANT Copper Industry," but analysts say it's unrealistic to expect the US to be self-sufficient in copper any time soon, the Globe and Mail reports. The US is heavily reliant on imported copper, with just two domestic smelters operating and nearly half of the copper supply coming from abroad. Almost a third of the copper mined in the US last year was sent overseas for processing. "Given the worldwide smelting and refining capacity, and the capital cost, there seems to be little economic incentive to build new capacity in the US. And nobody wants a smelter in their backyard," says mining consultant Jeffrey Franzen.

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The Santa Cruz project, however, stands out because it uses a process called heap leaching to produce copper cathodes onsite, bypassing the need for outside smelters. If successful, the mine could run for 23 years, producing an average of 72,000 tons of copper annually for the first 15 years at a cost far below current market prices.