Argentina has given the green light to Canadian mining company McEwen Copper’s $2.7bn (C$3.76bn pesos) Los Azules copper project, allowing it to benefit from a tax break programme, the Large Investment Incentive Regime (RIGI).
The Los Azules project in Calingasta, San Juan province, is set to become the first in the country to produce high-purity copper cathodes ready for direct industrial use.
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According to Economy Minister Luis Caputo, the project is expected to contribute $1.1bn (1.46trn pesos) in exports annually, reported Reuters.
This marks a significant development for Argentina’s copper production, which has been dormant since 2018.
San Juan is Argentina’s leading gold mining region and a hub for inactive copper projects, reported the media outlet.
The project is expected to create more than 3,500 direct and indirect jobs.
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By GlobalDataAccording to the preliminary economic assessment (PEA) base case released in June 2023, Los Azules is expected to generate more than $30bn in export revenues, resulting in a significant net inflow of foreign currency to Argentina, said the company.
Los Azules is the eighth project to secure approval for the RIGI tax break scheme, bringing total investment of $15.7bn under the incentive plan promoted by President Javier Milei’s government.
McEwen Copper vice-president and Los Azules project general manager Michael Meding 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 integration of Los Azules into the RIGI under a single strategic investment plan enhances operational predictability and establishes a clear framework for engagement with the State and future partners.”
McEwen Copper estimates overall funding for Los Azules, situated 3,500m above sea level in the Andes, will reach $3bn over the next three to four years.
The company plans to begin producing copper cathodes in Argentina by 2029.
It will soon release a feasibility study outlining operational details for the next 20 years, while working to secure necessary permits.
McEwen holds a 46.4% stake in Los Azules, with Stellantis owning 18.3% and Nuton, a Rio Tinto company, holding 17.2%.
