Los Azules: McEwen Copper's US$3.17bn Argentine bet with district-scale aspirations

McEwen Copper plans to adopt this year the final investment decision (FID) for the copper project Los Azules, in Argentina, with a view to starting construction in 2027 and bringing the operation online at the end of 2029. With that goal in mind, the company is speeding up the definition of its engineering, infrastructure and financing, taking into account a future expansion. 

With an initial capex of US$3.17 billion (bn), Los Azules aims to become a mining district in the province of San Juan, near the border with Chile, rather than just a single copper cathode-producing project .

The 2025 feasibility study estimates sufficient reserves for production of 205,000t/a of copper cathodes during the first five years, which would then average 148,000t/a for the remainder of a 21-year useful life. 

However, the Canadian miner believes there is potential to extend it to 30 years. Growth options include applying a more sophisticated version of the Nuton leaching technology – a subsidiary of Rio Tinto – at Los Azules, and building a concentrator that would allow the primary sulfides present in the deposit to be processed economically.

 Nevertheless, the expansion would require additional studies, so for now, last year’s feasibility study remains the basis of the project.

The recent second-quarter earnings report from McEwen details the progress toward FID. The company has devoted much of 2026 to defining the process engineering for the solvent extraction and electrowinning (SX-EW) hydrometallurgical process, the sulfuric acid plant, and the crushing systems.

Another focus has been the operational planning of Los Azules, with the evaluation of aspects such as the mining fleet and the contractors for the work, the infrastructure and the construction of roads. In the energy sphere, McEwen will connect the project to a 220kV line from electrical infrastructure installed in the province of Mendoza. 

Alternative financing options are also being evaluated together with its financial advisor, the French bank Société Générale, including a proposal from the Finnish credit agency Finnvera.

Los Azules attracts investors not only because of its geological wealth, but also because it is covered by the Large Investment Incentive Regime (RIGI) of Argentina, which guarantees tax and regulatory benefits for 30 years.

In its application to join the RIGI, the company committed to investing US$2.7bn in Los Azules, in addition to prioritizing the hiring of local labor. 

McEwen expects to obtain the permits this year to begin construction and is optimistic about a favorable response, given the environmental focus of its project. Los Azules is designed to operate with low water consumption and using only renewable energies.

This profile allowed him to gain the support of the International Finance Corporation (IFC), a subsidiary of the World Bank, strengthening Los Azules’ credibility with investors.

Behind Los Azules are the automaker Stellantis and the mining company Rio Tinto, with stakes of 18,2% and 17,2%, respectively, while McEwen holds 46,3%, along with other minority shareholders.

According to international analyst Carlos Escaffi, Los Azules is one of the cross-border projects – it has a specific protocol under the Mining Integration and Complementation Treaty between Chile and Argentina – that could set a trend in the way mining is done.

"Beyond a national perspective, these projects seek to guarantee their sustainability through the configuration of cooperation schemes based on regional integration," said Escaffi.