Ivanhoe Electric is set to acquire a Crossover XRE Tunnel Boring Machine (TBM) and a material handling system from the Robbins Company to facilitate mine access development at its Santa Cruz Copper Project in Arizona, US.
The acquisition aims to enhance efficiency and safety during the project’s decline development phase.
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Robbins recently reacquired the TBM from an Anglo American division, which originally purchased the machine for its Grosvenor coal mine in Queensland, Australia, where it completed two declines totalling 1.8km in 1,000 hours of underground use.
Ivanhoe Electric identified the opportunity in late 2025 and secured a legally binding option to acquire the machine in March 2026, subject to due diligence and trade-off studies.
The final purchase agreement is expected before the end of May 2026.
The acquisition of the TBM provides Ivanhoe Electric with the technology needed for potential future expansions at the Santa Cruz Copper Project, including the nearby Texaco Deposit.
This acquisition includes a comprehensive refurbishment of the TBM and a 9.3m-diameter cutterhead manufactured in Ohio.
Implementing the TBM system is expected to have a net impact on initial project capital of under $20m.
The project will include a steel-reinforced concrete tunnel and a permanent conveyor system for material and ore handling.
Arrival and assembly of the TBM are set for early 2027, with decline development commencing in the third quarter (Q3) of the same year.
With the new decline development method, Ivanhoe Electric no longer needs a Class V Underground Injection Control permit for silica gel.
The company received approval for the Site Development Plan from the City of Casa Grande in March 2026 and holds all necessary permits to begin initial construction activities.
During ongoing underground development, major surface infrastructure construction is planned from Q3 2027 through 2028.
Copper cathode production is expected to begin in Q2 2029.
Ivanhoe Electric is advancing its project financing process with the Export-Import Bank of the US and discussions with commercial banks and non-debt funding sources.
Ivanhoe Electric president and CEO Taylor Melvin said: “Our team became aware in late 2025 of the potential availability of the Robbins TBM at Grosvenor. Since that time, we have been engaged in extensive due diligence with Robbins while advancing the detailed engineering of our project.
“We commend the exhaustive work by our team of engineers over the past few months, in cooperation with Robbins, to arrive at this decision. Acquiring the Robbins Crossover XRE TBM will marry America’s best tunnel boring technology to America’s next great underground porphyry copper producer.”
