McEwen Copper seeks $2.5 billion for Los Azules project amidst capital control challenges

In Argentina, McEwen Copper is actively seeking investors to raise $2.5 billion for the construction of the Los Azules copper mine, declared by Vice President Michael Meding during a recent interview. Despite the challenges posed by stringent capital controls and an unstable economy, McEwen Copper, a subsidiary of McEwen Mining, is one of several international companies exploring opportunities in the northern Argentine mountains, which have remained largely untapped for copper production. The urgency of this investment is heightened by an incentive program introduced by President Javier Milei, which has revitalized interest in the mining sector after the closure of the country’s only copper mine in 2018. As part of its strategy to advance the project, McEwen Copper anticipates receiving a key environmental permit within the next 4 to 6 weeks, marking an important milestone in the project timeline. The company aims to begin substantial construction planning by the end of 2025, contingent on successful fundraising efforts. To date, McEwen Copper has invested over $400 million into the Los Azules project, underscoring its commitment to the initiative and its potential role in boosting Argentina's mining output. The proposed mine is projected to produce approximately 175,000 metric tons of copper annually, and the company hopes to qualify for Milei's Incentive Regime for Large Investments within approximately three months. This regime offers significant advantages, including 30 years of tax credits, reduced customs duties, and gradual alleviation of capital controls, which are critical for foreign investments and sustainable operations in the country. Additionally, partners such as Stellantis and Nuton, a subsidiary of Rio Tinto, hold minority stakes in the project, showcasing its collaborative nature. Notably, Argentine state-owned company YPF Luz is set to supply the mine with fully renewable energy, primarily derived from solar power, further enhancing the project’s appeal in terms of sustainability. Recent visits from European Union officials signal growing international interest, and discussions regarding the project's social and environmental standards have indicated favorable terms that align with potential European investments.