McEwen Copper Inc., a subsidiary of McEwen Mining Inc. announced today that its subsidiary Andes Corporación Minera S.A., has applied for admission of the Los Azules copper project to Argentina's Large Investment Incentive Regime (“RIGI”).
By Panorama Minero
The Los Azules Project involves an investment currently estimated at US$2.7 billion, of which US$227 million have been committed under the RIGI to complete the feasibility study, conduct additional exploration and perform preliminary work to render the project ready to commence construction. An additional investment of USD 2.5 billion is estimated to build the mine and production facilities as a future expansion of the RIGI 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.
Robert McEwen, Chairman and Chief Owner of McEwen Mining, stated: "Argentina is once again open for business. The introduction of the RIGI provides both stability and incentives for large-scale infrastructure investments. This is evident from the recent significant transactions in Argentina's mining sector, all aimed at improving the standard of living for Argentinians and offering reasonable returns for investors."
Michael Meding, Vice-President and General Manager of McEwen Copper, and General Manager of the Los Azules Project, added: "Los Azules, one of the top 10 copper projects by resource size, has made substantial progress in recent years. The recent approval of the environmental permit for construction and operation marks an important milestone. The RIGI represents a key advancement for Argentina, enhancing access to capital for vital infrastructure projects, including Los Azules."
Next Steps: Towards Feasibility and Construction
With the approval of the EIA, 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 begin construction in early 2026, which will strengthen even further McEwen Copper's position at the forefront of sustainable mining and as a major driver of economic and social development in San Juan.
