Ivanhoe Electric (NYSE: IE) has signed a formal agreement with Sociedad Química y Minera de Chile (NYSE: SQM) to search for copper deposits in northern Chile, one of the world’s most productive copper regions.
About SQM
- One of Chile’s largest and most established mining companies, valued at around US$24 billion.
- Global leader in lithium, potassium nitrate, and iodine production.
- Owns extensive mining concessions in the Atacama Desert, an area with significant untapped mineral potential.
Typhoon™ Technology: Seeing Through the Desert
The desert is covered by caliche, a salt-cemented layer that blocks most geophysical surveys. Ivanhoe Electric’s Typhoon™ system sends a strong, clean electrical signal capable of penetrating this layer, revealing hidden copper deposits. The system works alongside CGI’s data inversion software to analyze the results and pinpoint potential targets.
How the Collaboration Works
- The project covers 2,002 km² of SQM’s concessions.
- The initial exploration period is three years, guided by a joint technical committee.
- SQM funds the work with an initial US$9 million investment.
- If a qualifying deposit is found (defined as containing at least 1 million tonnes of copper or copper equivalent), Ivanhoe Electric can acquire 50% ownership by paying twice the exploration costs.
- The resulting 50/50 joint venture will fund further development proportionally between both companies.
Potential Impact
CEO Robert Friedland highlighted the strategic value:
“Partnering with SQM allows us to bring Typhoon™ and CGI technology to one of the world’s richest copper regions. Large areas of caliche hide huge mineral potential, and our tools can reveal deposits that other methods cannot.”
This partnership gives Ivanhoe Electric the chance to discover major new copper resources, supporting the global demand for copper driven by electrification, renewable energy, and industrial growth.
