Canada’s McEwen Copper is scouting for investors to raise $2.5 billion to move forward with construction of Los Azules copper mine in Argentina, company vice president Michael Meding said in an interview.
McEwen Copper, part of McEwen Mining, is among several international companies looking to extract copper in the mountains of northern Argentina, a region largely untapped for the commodity due to the country’s tough capital controls and volatile economy.
An incentive program under President Javier Milei is now spurring activity, including from major players such as miner BHP, after the country’s only copper mine closed in 2018.
Los Azules is due to receive a key environmental permit in four to six weeks, Meding said. From there, the company hopes around the end of 2025 to start planning for construction.
“We have invested more than $400 million to date. And now we are looking for $2.5 billion for capex,” Meding told Reuters on Thursday.
The project, expected to produce about 175,000 metric tons of copper a year, aims to qualify for Milei’s Incentive Regime for Large Investments, or RIGI, in about three months. The scheme offers 30 years of tax credits, lighter customs duties and a progressive easing of capital controls.
Carmaker Stellantis and Nuton, a unit of global miner Rio Tinto, both hold minority shares of Los Azules, located in San Juan province. Nuton increased its stake with an investment of $35 million in October.
Argentine state-owned company YPF Luz has agreed to provide the mine with 100% renewable energy, mainly solar, Meding said.
European Union officials recently visited the site, and Meding said he discussed with them the project’s social and environmental standards.
“We ticked many of the boxes that make it interesting for a possible European investment,” Meding said.
(By Lucila Sigal; Editing by Tomasz Janowski and David Gregorio)
