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.
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.
According 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%.
