McEwen Copper's Los Azules Project Gains Argentina's Large Investment Incentive Approval
TL;DR
McEwen's Los Azeles copper project gains RIGI approval, securing a competitive edge with a $2.672 billion investment plan to become Argentina's first high-purity copper cathode producer.
The RIGI approval process confirmed the technical and financial strength of Los Azules, which will use renewable energy and minimal water in its operations to produce copper cathodes.
Los Azeles will create significant employment, boost local development, and generate over $30 billion in export revenues while aiming for carbon neutrality by 2038.
Argentina's first regenerative copper mine project received historic approval, marking a major step toward producing high-purity copper cathodes with minimal environmental impact.
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McEwen Inc. (NYSE: MUX) (TSX: MUX) has secured approval for its Los Azules copper project to participate in Argentina's Large Investment Incentive Regime (RIGI), as confirmed by Minister of Economy Luis Caputo. This designation formalizes a US$2.672 billion investment plan covering exploration, construction, and operations for the San Juan Province project, positioning it to become Argentina's inaugural producer of high-purity copper cathodes.
The RIGI approval represents a significant milestone for both McEwen Copper and Argentina's mining sector, validating the project's technical and financial viability while endorsing its sustainability-focused approach. The project's environmental model emphasizes renewable energy integration, minimal water consumption, and long-term contributions to local community development, setting new standards for responsible mining practices in the region.
Economically, Los Azules is projected to generate substantial benefits, including over US$30 billion in export revenues throughout its operational life. The project will create significant employment opportunities and boost provincial and national tax revenues, contributing to Argentina's economic growth and foreign exchange earnings. Michael Meding, Vice President of McEwen Copper and General Manager of the Los Azules Project, stated that this approval reinforces the company's long-term commitment to Argentina and San Juan Province.
The project's technical specifications, detailed in a June 2023 Preliminary Economic Assessment available through McEwen's press release, indicate a 27-year mine life with copper resources totaling 10.9 billion pounds at 0.40% copper in the indicated category plus 26.7 billion pounds at 0.31% copper in the inferred category. The assessment estimates a $2.7 billion after-tax net present value at an 8% discount rate, based on a copper price of $3.75 per pound.
Los Azules aims to become Argentina's first regenerative copper mine, targeting carbon neutrality by 2038. This environmental commitment aligns with global trends toward sustainable mining practices and positions the project favorably in international markets increasingly focused on environmentally responsible supply chains. The project's approval under RIGI signals Argentina's commitment to attracting large-scale mining investments while maintaining high environmental standards.
For investors and stakeholders, the RIGI approval provides regulatory certainty and demonstrates government support for the project's development timeline. McEwen Inc., which holds 46.4% of McEwen Copper, maintains operations across the Americas including Nevada, Canada, Mexico, and Argentina. The company's shares trade on both the New York Stock Exchange and Toronto Stock Exchange under the symbol MUX, with additional information available in the company's newsroom.
Curated from InvestorBrandNetwork (IBN)
