Los Azules copper project moves toward 2027 construction start

Los Azules copper project

The Los Azules copper project has cleared a major hurdle with a positive feasibility study and a 2027 build target. The Los Azules copper project now has a clear pathway from study stage to construction and first cathode output in 2030. The project will produce around 204,800 t/yr of copper cathode in its first five years, before stabilising at 148,200 t/yr. The mine will use heap leach and solvent extraction-electrowinning to deliver LME grade A-equivalent copper without conventional smelting.

RIGI incentives transform Los Azules copper project economics

Argentina’s large investment regime, RIGI, is central to the Los Azules copper project business case. RIGI locks in 30 years of incentives, covering income and dividend tax relief and export tax exemptions. The regime also exempts the project from entering or liquidating export proceeds in the FX market after four years. As a result, the Los Azules copper project gains rare long-term fiscal stability in a high-risk macro environment. These incentives improve after-tax cash flows and strengthen returns through the 21-year mine life.

Financing strategy and ESG profile of Los Azules copper project

McEwen faces an initial capex bill of $3.17bn to build Los Azules. To support this, the company has indicative proposals from tier-1 equipment suppliers and European export credit agencies for about $1.1bn. These proposals could anchor a broader financing package that blends ECA debt, commercial loans and potential equity. Meanwhile, McEwen has agreed to align the Los Azules copper project with IFC environmental, social and governance standards. That alignment could see IFC join as a lead lender and equity partner, boosting credibility with global financiers. The heap leach and SX-EW flowsheet also positions the project to market relatively low-carbon cathode directly into international value chains.

The Metalnomist Commentary

Los Azules highlights how large copper projects increasingly depend on structured fiscal regimes and blended financing to move forward. If McEwen secures funding on IFC-aligned terms, Los Azules could become a flagship template for future Argentine copper investments under RIGI. The project’s success or delay will send a strong signal on Argentina’s ability to convert policy incentives into real mine construction.