Argentina has approved McEwen Copper’s $2.7 billion Los Azules copper project for inclusion in the country’s Large Investment Incentive Regime (RIGI), a program designed to attract major foreign investment through tax breaks, Economy Minister Luis Caputo announced Friday.
Expected to generate $1.1 billion in annual exports, Los Azules marks the first copper mining project approved in San Juan province, historically a gold mining hub. Once operational, the project is forecast to create more than 3,500 direct and indirect jobs.
Argentina has not produced copper since the closure of its Alumbrera mine in 2018, but projects like Los Azules are reviving hopes that the nation could emerge as a significant global copper supplier.
Los Azules, located at 3,500 meters above sea level in the Andes, is the eighth project cleared under RIGI, pushing the scheme’s total investment commitments to $15.7 billion. McEwen Copper, a subsidiary of McEwen Mining, leads the development with a 46.4% stake, joined by Stellantis (18.3%) and Nuton/Rio Tinto (17.2%).
The project is expected to require $3 billion in total investment over three to four years, with financing still to be secured. McEwen aims to start producing copper cathodes by 2029, supported by a forthcoming feasibility study outlining a 20-year operational plan.
Unlike traditional flotation methods, Los Azules will use a leaching extraction process that reduces water use by five-sixths, minimizing environmental and social impact on surrounding communities.
