Wedoany.com Report-Sept. 28, On September 26, 2025, Argentina’s Economy Minister Luis Caputo announced that McEwen Copper’s $2.7 billion Los Azules copper project in San Juan Province has been approved for the Large Investment Incentive Regime (RIGI). This marks the first copper mining project in the province to receive such benefits, positioning Argentina to potentially become a significant global copper supplier. The project, managed by McEwen Copper, a subsidiary of McEwen Mining, is expected to contribute $1.1 billion annually to exports.

Los Azules copper project in San Juan, Argentina.

Located 3,500 meters above sea level in the Andes Mountains, Los Azules is set to produce high-purity copper cathodes starting in 2029. The project employs a leaching extraction method, reducing water usage by approximately 83% compared to traditional flotation techniques, minimizing environmental impact and supporting local communities. A feasibility study detailing operations for the next 20 years is nearing completion, with publication expected by October 2025, while McEwen secures necessary permits.

The RIGI approval, the eighth under the program, brings total investments to $15.7 billion. It offers a reduced corporate tax rate of 25%, halved dividend withholding taxes, and streamlined foreign exchange procedures, enhancing project viability. McEwen estimates a total investment of $3 billion over three to four years and is now seeking financing to advance construction, planned for early 2026. The project is projected to create over 3,500 direct and indirect jobs, boosting economic development in San Juan Province.

Michael Meding, Vice President of McEwen Copper, said: “This approval reinforces McEwen Copper’s long-term commitment to Argentina and the Province of San Juan, advancing a model of modern, responsible, and sustainable mining.” The project aims for carbon neutrality by 2038, using 100% renewable energy, primarily solar, in collaboration with YPF Luz.

McEwen Copper holds a 46.4% stake in Los Azules, with Stellantis owning 18.3% and Nuton, a Rio Tinto venture, holding 17.2%. These partnerships combine mining expertise with automotive and technological innovation, supporting the global demand for copper in electrification and renewable energy. The project is expected to generate over $30 billion in export revenues over its 27-year lifespan, based on a 2023 Preliminary Economic Assessment.

The Los Azules project, among the world’s largest undeveloped copper deposits, positions Argentina to meet rising global copper demand while fostering sustainable economic growth through job creation and responsible mining practices.