McEwen's Argentina Los Azules Copper Project Receives RIGI Approval

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--McEwen Mining Incorporated (Toronto, Ontario) plans to invest US$2.7 billion in Los Azules, with projected annual exports valued at US$1.1 billion.

Luis Caputo, Argentina's economy minister, said on X that McEwen's Los Azules copper project is the latest development to be approved by the Incentive Regime for Large Investments (RIGI), a program launched by the government last year aimed at attracting investments in exchange for fiscal and legal benefits. Los Azules is the eighth project approved under the RIGI.

Among the benefits obtained through the RIGI are a 10% drop in the income tax rate, legal certainty, early value-added tax recovery, and exemption from export duties.

Los Azules is in San Juan province near the Chilean border. Designed as an open-pit mine, it has indicated resources of 5.1 million tons of copper, 10 million ounces of silver, and 460,000 ounces of gold. This makes it the ninth-largest undeveloped copper project globally.

The project is owned by a consortium composed of McEwen (46.4%), Stellantis (18.3%), Nuton/Rio Tinto Venture (17.2%), Rob McEwen (12.7%), Victor Smorgon Group (3%) and other stakeholders (2.3%).

Los Azules updated its preliminary economic assessment in 2023 and received environmental permit approval in December last year. The company plans to publish its feasibility study in October.

McEwen expects to produce 146,000 tons of copper cathodes annually over the mine's 27-year life.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here to view reports related to Los Azules copper project.

Argentina currently has a portfolio of 23 copper projects worth US$22 billion. The most advanced of them is the Josemaria project, which is currently under construction, while the other 22 are in earlier stages of development. Subscribers can click here for the Josemaria project reports.

Argentina was a copper producer until 2018, when the last mine ceased operations. Still, vast resources and opportunities like RIGI are reviving interest in development.

In a recent speech, Martin Perez de Solay, president of Glencore Argentina, was very optimistic about the development of the nation's copper resources. He estimated that the country could produce 2 million tons of copper in the next 10 years, given current projects and developments, and attract between US$35 billion and US$45 billion in investments.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).