Argentina Approves McEwen’s $2.7 Billion Los Azules Copper Project for Tax Break Program

Argentina Approves McEwen’s $2.7 Billion Copper Project

Argentina has approved McEwen Copper’s $2.7 billion Los Azules copper project. The project will benefit from the Large Investment Incentive Regime (RIGI), a tax incentive program. Economy Minister Luis Caputo stated the approval will generate $1.1 billion in annual exports.

McEwen Copper, a subsidiary of McEwen Mining, aims to revive Argentina’s copper industry. This comes after the closure of the Alumbrera mine in 2018. The Los Azules project, located 3,500 meters above sea level in the Andes, positions Argentina to become a global copper supplier. The approval marks a milestone, as it is the first copper mining project in San Juan province. Historically known for gold mining, the province has several inactive copper projects.

The Project’s Economic Impact and Tax Incentives

Los Azules is the eighth project approved under the RIGI program. The program has already attracted $15.7 billion in investments. McEwen Copper estimates Los Azules will require a total investment of $3 billion over the next three to four years. The project will create more than 3,500 jobs, both directly and indirectly. This will boost the local economy and enhance the region’s mining potential.

Sustainable Mining Practices

McEwen plans to use a leaching method for copper extraction. This method is more water-efficient and environmentally friendly than traditional techniques. It will reduce water usage by five to six times, minimizing environmental impact. The company aims to begin producing copper cathodes in 2029. A detailed feasibility study will outline the project’s operational plans for the next 20 years.

McEwen Copper’s Strategic Partnerships

McEwen Copper holds a 46.4% stake in the Los Azules project. Stellantis owns 18.3%, and Nuton/Rio Tinto holds 17.2%. These strategic partnerships signal strong confidence in the project’s long-term success. The collaboration positions Los Azules as a key player in both Argentina’s mining sector and the global copper supply chain.

SuperMetalPrice Commentary:

McEwen Copper’s Los Azules project is a significant development in Argentina’s mining sector. By tapping into the country’s potential, McEwen is not only reviving the local copper industry but also positioning Argentina to compete globally. With sustainable practices and strong partnerships, this project holds promise for long-term success.