McEwen Inc. (NYSE: MUX) (TSX: MUX) announced that its Los Azules copper project in San Juan Province has been approved to participate in Argentina's Large Investment Incentive Regime (RIGI), as confirmed by Minister of Economy Luis Caputo. The designation consolidates a US$2.672 billion investment plan covering exploration, construction, and operations, marking a historic step for the project, which is set to become Argentina's first producer of high-purity copper cathodes.
The RIGI approval affirms both the technical and financial strength of Los Azules and its sustainability model, which emphasizes renewable energy, minimal water use, and long-term contributions to local development. Los Azules is projected to generate over US$30 billion in export revenues, create significant employment, and boost provincial and national tax inflows. “This approval reinforces McEwen Copper's long-term commitment to Argentina and the Province of San Juan,” said Michael Meding, Vice President of McEwen Copper and General Manager of the Los Azules Project.
This approval is crucial for Argentina's economic recovery, as it signals a favorable investment climate for large-scale mining projects. The RIGI program provides tax and customs benefits, legal stability, and access to foreign exchange, making it an attractive framework for capital-intensive ventures like Los Azules. The project's focus on sustainability, including carbon neutrality by 2038, aligns with global trends toward responsible mining and could set a precedent for future developments in the region.
McEwen Copper, a subsidiary of McEwen Inc., holds a 46.4% stake in the project. A June 2023 Preliminary Economic Assessment (PEA) estimates a $2.7 billion after-tax NPV (8%) at $3.75/lb Cu, a 27-year mine life, and copper resources of 10.9 billion lbs at 0.40% Cu Indicated plus 26.7 billion lbs at 0.31% Cu Inferred. For PEA details, visit McEwen's press release.
The implications of this announcement extend beyond McEwen. Argentina, which has struggled with economic instability, stands to benefit from the influx of foreign investment and job creation. The Los Azules project could become a cornerstone of the country's mining sector, potentially attracting further investment in copper and other critical minerals. Additionally, the project's regenerative approach may influence mining practices globally, emphasizing environmental stewardship alongside economic development.
McEwen Inc. is a gold and silver producer with operations in Nevada, Canada, Mexico, and Argentina. The company's shares are publicly traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “MUX”. For the latest news and updates relating to MUX, visit the company's newsroom at https://ibn.fm/MUX.
