McEwen Copper, a division of McEwen Mining Inc (TSX:MUX, NYSE:MUX), is on track to secure a critical environmental permit for its Los Azules copper project in Argentina, with approval expected in the next four to six weeks.
McEwen Copper vice president Michael Meding told Reuters in an interview Thursday that the firm is seeking seeking $2.5 billion in funding to move forward with the construction.
The Los Azules mine, located in Argentina’s northern mountains, is projected to produce approximately 175,000 metric tons of copper annually. Despite Argentina's challenging economic conditions and stringent capital controls, McEwen Copper has already invested over $400 million into the project.
Los Azules has attracted strategic partners like Stellantis, the automaker, and Nuton, a Rio Tinto subsidiary, which increased its stake in October with a $35 million investment.
The project is expected to qualify for Argentine President Javier Milei’s Incentive Regime for Large Investments (RIGI) within three months. This program offers 30 years of tax credits, reduced customs duties, and a gradual relaxation of capital controls, providing significant financial incentives for large-scale developments.
Los Azules is set to operate on 100% renewable energy supplied by YPF (NYSE:YPF) Luz, primarily through solar power.
Canadian royalty firm TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) (TNR Gold Corp (TSX-V:TNR, OTC:TRRXF), TNR Gold Corp (TSX-V:TNR, OTC:TRRXF)) holds a 0.4% net smelter returns royalty on Los Azules.
TNR CEO Kirill Klip hailed McEwen Copper’s “strong team performance” to advance the Los Azules project towards a feasibility study.
“The Los Azules project PEA results highlight the potential to create a robust leach project while reducing the environmental footprint, and greater environmental and social stewardship sets the project apart from other potential mine developments,” Klip told Proactive.
“Now Los Azules Copper is due to receive a key environmental permit in four to six weeks. This advance put the Los Azules copper project development closer to the construction decision which can be made as soon as next year after the release of the feasibility study.”
--Updated with TNR quote--