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.

Argentina copper mine investment accelerates under Rigi incentive framework

Argentina copper mine

Argentina copper mine investment is entering a new phase under the Rigi incentive framework. The approval of McEwen Copper’s $2.7bn Los Azules project signals that Argentina copper mine investment is now central to the Milei government’s economic strategy. As a result, Argentina copper mine investment is being positioned as a key pillar for both fiscal reform and long-term export growth.

Rigi turns Los Azules into a flagship Argentina copper mine investment

The Los Azules project is the first copper mine approved under Argentina’s large-scale investment regime, Rigi. The scheme offers a 25pc tax rate instead of 35pc, 30 years of legal stability and exemption from import duties on capital goods. These incentives are designed to de-risk Argentina copper mine investment amid currency volatility and political uncertainty. Construction at Los Azules could begin as early as 2026, subject to permitting approvals. The mine is expected to produce about 175,000 t/yr of copper, placing it among the country’s most significant future producers. This scale matters for Argentina’s balance of payments, because copper exports can provide stable hard-currency revenues.

Copper anchors Argentina’s wider energy and mining investment push

The Los Azules approval is part of a broader Rigi pipeline that already totals $15.7bn in committed projects. The portfolio spans two solar plants, two lithium mines, an oil pipeline, an LNG facility and a steel mill. Together, these projects illustrate how copper, lithium and energy infrastructure are being bundled into a single strategic investment narrative. The government is targeting at least $50bn in energy investment and another $50bn in mining by 2027. That timeline aligns with president Javier Milei’s current term and his wider macroeconomic adjustment agenda. At the same time, Argentina is courting external financial support, including a potential $20bn currency swap backed by the US government. Stable capital inflows are critical to sustain Rigi and reassure foreign mining investors.

The Metalnomist Commentary

Los Azules shows how targeted tax stability and customs relief can unlock large-scale copper capex even in a risky macro environment. The challenge will be execution: permitting, infrastructure delivery and social licence will determine whether this project hits its 2026–27 window. For the global copper market, Argentina’s success or delay at Los Azules will shape future supply expectations in the second half of the decade.

Rio Tinto’s Nuton Invests $35 Million in McEwen Copper’s Los Azules Project

Rio Tinto’s

Rio Tinto’s Nuton venture, known for its innovative leaching technology to enhance copper recovery, has invested $35 million in McEwen Copper, a subsidiary of McEwen Mining, to advance the Los Azules copper project in Argentina. The funds will support a feasibility study for Los Azules, slated to commence in the first half of 2025.

Key Details on the Los Azules Project

• Location: San Juan Province, Argentina.
• Production Goal: 100,000 t/yr of copper cathode with 99.9% purity starting in 2027.
• Project Duration: Expected to operate for at least 33 years.

Investment Breakdown

This funding forms part of a $70 million financing round for Los Azules:

• First Tranche: Included $14 million from McEwen Mining and $5 million from CEO Rob McEwen.
• Second Tranche: Featured Nuton’s $35 million investment and $2 million from two other investors.

Following this second tranche, McEwen Copper has raised a total of $56 million, with Nuton acquiring a 17.2% stake in the company on a fully diluted basis.

Strategic Importance

The investment underscores Rio Tinto’s growing focus on leveraging leaching technology to improve copper recovery efficiency, addressing rising global demand for high-purity copper. The Los Azules project is set to play a pivotal role in bolstering sustainable copper production, essential for renewable energy systems and electric vehicles.