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| Los Azules copper project |
Major Tax Incentive Boosts Argentina’s Copper Ambitions
Argentina has approved McEwen Copper’s Los Azules copper project for its Large Investment Incentive Regime (RIGI). The $2.7 billion project becomes the first copper mining venture in San Juan Province to receive such approval. As a result, McEwen gains favorable tax treatment while Argentina aims to reenter the global copper supply chain after a seven-year production hiatus.
Los Azules Expected to Drive Exports and Jobs
The Los Azules copper project could generate $1.1 billion in annual exports, according to Economy Minister Luis Caputo. It will create over 3,500 jobs, both directly and indirectly. Located 3,500 meters above sea level in the Andes, the mine will use leaching extraction, reducing water use by over 80% compared to flotation. This aligns with environmental concerns and community impact mitigation strategies.
Strategic Partnerships and Long-Term Outlook
McEwen Copper, a subsidiary of McEwen Mining, owns 46.4% of the project, with Stellantis and Rio Tinto-backed Nuton holding 18.3% and 17.2% respectively. The Los Azules copper project plans to begin cathode production by 2029. Meanwhile, McEwen must secure full financing and permits, with a feasibility study expected soon. The site’s inclusion in the RIGI scheme signals Argentina’s intent to attract over $15 billion in mining investments.
ScrapInsight Commentary
Argentina’s approval of the Los Azules copper project repositions the country as a long-term copper supplier. If executed as planned, this project could affect cathode premiums and shift investor interest toward Latin American extraction zones. Water-saving technologies may also influence future ESG standards in copper mining.
