Determining the sediment-basement interface is the major step in evaluating the mineral resource potential of a region. The magnetotelluric (MT) method can be effectively used for solving this problem because there exists a strong contrast in resistivity between a conductive sedimentary basin and a resistive basement. Conventional inversions of MT data are aimed at determining the volumetric distribution of the conductivity within the inversion domain. The recovered distribution of the subsurface conductivity is typically diffusive, which makes it difficult to select the sediment-basement interface. This letter develops a novel approach to 3-D MT inversion for the depth-to-basement estimate. The key to this approach is selection of the model parameterization, with the depth to basement being the major unknown parameter. In order to estimate the depth to the basement, the inversion algorithm recovers both the thickness and the conductivities of the sedimentary basin. The forward modeling is based on the integral equation approach. The inverse problem is solved using a regularized conjugate gradient method. The Fréchet derivative matrix is calculated based on quasi-Born approximation. The developed method and the algorithm for MT inversion for the depth-to-basement estimate are illustrated on several realistic geoelectrical models. Index Terms-Basement depth, integral equation (IE), inversion, magnetotelluric (MT). I. INTRODUCTION T HERE is a strong interest in developing effective geophysical methods for depth-to-basement estimation. Three main geophysical methods are used for this application-the seismic, potential field, and electromagnetic (EM) methods [1]-[4]. It is well known that seismic imaging is characterized by the highest resolution of the subsurface structures. However, in the case of complex near-surface heterogeneity (e.g., shallow, high-velocity, and highly heterogeneous basalt sills), typical for many frontier exploration regions, interpretation of seismic data represents a significant challenge, while using 3-D seismic surveys is very expensive [5]. These circumstances stimulated Manuscript