Name of the project
Los Azules copper project.

Location
San Juan province, Argentina.

Project Owner/s
Gold and silver producer focused on the Americas McEwen Mining 46.4%, Stellantis 18.3%, Nuton 17.2%, Rob McEwen 12.7%, Victor Smorgon Group 3% and other shareholders 2%.

Project Description
The large, high-grade openpit copper project has significant growth potential.

According to the  updated preliminary economic assessment (PEA), completed in 2023, Los Azules is expected to produce an average of 322-million pounds of copper cathode a year over a 27-year life-of-mine. 

The project will be powered by 100% renewable electricity once in operation, progressing towards being carbon neutral by 2038.

The 2023 PEA financial model does not include potential future development phases focused on primary copper mineralisation found beneath the supergene copper.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an estimated 8% discount rate, of $2.66-billion and an internal rate of return of 21.2%, with a payback of 3.2 years.

Capital Expenditure
About $2.7-billion.

Planned Start/End Date
Los Azules has the potential to start construction in early 2026.
 
Latest Developments
McEwen has applied for the admission of the project to Argentina's Large Investment Incentive Regime (RIGI). An estimated $227-million has been committed under the RIGI to complete the feasibility study, conduct additional exploration and perform preliminary work to start construction. 

An additional investment of $2.5-billion is estimated to build the mine and production facilities as a future expansion of the project.

Once admission to the RIGI is approved by the authority, Los Azules will have access to various benefits, including a drop in the corporate income tax rate from 35% to 25%, relief from value-added tax payment during construction, exemption from export duties, and exclusion from the obligation to bring export proceeds into the country, as well as 30-year stability and access to international arbitration in case of disputes.

With the approval of the project’s environmental-impact assessment, the upcoming feasibility study scheduled for the first half of 2025, and the approval of the application for admission to the RIGI, Los Azules has the potential to start construction in early 2026.

Key Contracts, Suppliers and Consultants
Samuel Engineering Inc, with contributions from Knight Piésold Consulting, Stantec Consulting International, McLennan Design, Whittle Consulting and SRK Consulting UK (PEA).

Contact Details for Project Information
McEwen Mining +1 647 258 0395 or email info@mcewenmining.com.