Los Azules: A Sustainable Copper Project

In the heart of the Andes Mountains, at 3,600 meters above sea level, one of Argentina’s most ambitious and transformative mining projects is taking shape.

Los Azules, the copper development owned by McEwen Copper Inc. and located in the department of Calingasta, San Juan Province, is already considered one of the most promising copper projects in the continent.

Designed under principles of sustainable mining, low carbon emissions and advanced technology, Los Azules aims to become Argentina’s first regenerative copper mine.

Its production model—based on heap leaching and SX/EW—will allow the operation to produce LME Grade A copper cathodes (99.99% purity) directly at the site, without the need for smelting.

The project will enable Argentina to meet its domestic demand for energy, infrastructure, and electromobility, while positioning itself as a new global copper exporter.

A New Environmental Standard for Argentine Mining

The project introduces a pioneering sustainability approach that redefines traditional industry parameters:

• 73% less water consumption compared to a conventional concentrator plant (159 L/s vs. 600 L/s).
  
• 48% lower electricity demand, supplied entirely by renewable energy—wind, solar, and hydroelectric.
  
• 72% lower greenhouse gas emissions, with a carbon-neutrality goal set for 2038.
  
• Zero tailings and no tailings dams, eliminating one of the main environmental risks of traditional mining.
  
• A regenerative approach, focused on delivering net-positive impacts on Andean ecosystems, flora, fauna, and nearby communities.
  

Sustainability, Investment, and Economic Outlook

The Feasibility Study (FS), developed under NI 43-101 standards, confirms the project’s technical and economic viability. It includes an open-pit operation with heap leaching and SX/EW, enabling the production of Grade A copper directly at the mine.

Key economic indicators highlight its robustness:

• Initial investment: US$ 3.17 billion
  
• Mine life: 21 years
  
• Average annual production: 327 million pounds (148,200 tonnes)
  
• Average production years 1–5: 451 million pounds (204,800 tonnes)
  
• Post-tax NPV: US$ 2.9 billion
  
• IRR: 19.8%
  
• Payback period: 3.9 years
  
• Strong profitability maintained with copper prices above US$ 3.74/lb
  
• Break-even: US$ 3.10/lb
  

Over its operational life, Los Azules will process 1.02 billion tonnes of ore with an average grade of 0.45% Cu, generating more than 7.2 billion pounds of recoverable copper.

The regional impact includes direct and indirect employment, strategic infrastructure, and significant export revenues.

A Project Under an Exceptional Stability Framework

In September 2025, Los Azules was officially incorporated into Argentina’s Regime for Large Investment Incentives (RIGI), which guarantees legal, fiscal, and customs stability for 30 years.

Key benefits include:

• Reduction of corporate income tax to 25%
  
• Exemption from export duties
  
• Early VAT recovery
  
• Free availability of export proceeds
  
• Access to international arbitration mechanisms
  

At the same time, McEwen Copper is advancing its financing structure with preliminary proposals exceeding US$ 1.1 billion, coming from global equipment manufacturers such as Komatsu and Sandvik, European export credit agencies (ECAs), and the Argentine company YPF Luz, which will supply 100% renewable energy to the project.

The company also signed an agreement with the IFC (World Bank Group) to align the project with international ESG standards and pave the way for future green financing.

In terms of workplace safety, the project has reached a milestone: more than 2.3 million man-hours worked without lost-time accidents since 2022.

Environmental Approval and Provincial Support

In December 2024, the Ministry of Mining of San Juan approved the Environmental Impact Assessment (EIA) for Los Azules—a decisive step toward construction and operation.

The Environmental Impact Declaration (DIA) resulted from an extensive technical review and public participation process, involving local professionals and 14 evaluating institutions. This approval reaffirms the province’s confidence in copper mining and in the project’s sustainable model.

Technological Innovation and Future Expansion

One of the most relevant innovations included in the study is the incorporation of Nuton® technology, developed by Rio Tinto—a system capable of leaching primary and secondary sulfides with recoveries above 80%, reducing environmental impact and eliminating the need for concentrators or smelters.

This technology could extend the project’s life by over 30 years.

Additionally, exploration continues in four nearby porphyry targets—Tango, Pórfido Norte, Franca, and Mercedes—which could significantly expand current resources.

A Pillar for Argentina’s Mining and Energy Future

With a vision of modern, transparent, regenerative, world-class mining, Los Azules stands as a key project for Argentina’s energy transition and its competitiveness in the global copper market.

Its development promises to transform San Juan’s productive matrix and position Argentina as a significant copper player in the coming decades.