McEwen Copper presses ahead with Los Azules Project despite Argentina’s economic turmoil

McEwen Copper releases a $3.2B feasibility study for its Los Azules project in Argentina, as CEO Michael Meding says investors remain confident thanks to the RIGI stability program and strong copper market outlook.

McEwen Copper Inc., McEwen Copper Inc., the copper-focused unit of Canadian mining entrepreneur Rob McEwen, is pressing ahead with its flagship Los Azules project in Argentina, betting that the country’s new investment framework will protect its $3.2 billion development from recent economic and political turbulence.

Feasibility study confirms large-scale copper potential

This week, McEwen Copper released the long-awaited feasibility study for Los Azules, located in San Juan province. The study outlines an annual copper cathode production of 204,800 tons, positioning it among the most significant undeveloped copper projects globally. The project’s initial capital expenditure is estimated at $3.2 billion, with construction expected to begin in 2026 and first production slated for 2030 — just as analysts forecast a major global copper supply gap driven by the energy transition.

Investor confidence amid Argentina’s market volatility

Despite Argentina’s ongoing market instability and the political uncertainty surrounding President Javier Milei’s administration, CEO Michael Meding said the company’s investors remain supportive. “We believe in the future of Argentina,” Meding said in an interview from Europe. “It’s in a good spot geopolitically and has what the world needs.”

McEwen Copper’s optimism is largely tied to the government’s Régimen de Incentivos para Grandes Inversiones (RIGI), a fiscal and legal stability framework offering long-term tax, currency, and trade benefits to strategic projects. The Los Azules RIGI application — valued at $2.7 billion — was approved late last month, providing the venture with a degree of protection rarely seen in Argentina’s volatile business landscape.

IPO plans and strategic partnerships

Following the study’s release, McEwen Copper is preparing an initial public offering (IPO) expected to take place in early 2026, potentially in Toronto or New York, with a concurrent listing under consideration for Buenos Aires.

The company has already attracted heavyweight investors including Stellantis NV and a Rio Tinto Group venture, while also signing an agreement with the World Bank’s International Finance Corporation (IFC) to support project development. Preliminary financing proposals have been received from Komatsu Ltd., Sandvik AB, and several European export credit agencies, covering key equipment and part of the construction costs.

Strategic outlook

If completed on schedule, Los Azules could make Argentina a key player in the global copper supply chain — critical for electric vehicles, renewable energy systems, and data center infrastructure. For McEwen Copper, the project not only symbolizes a vote of confidence in Argentina’s mining resurgence but also underscores a broader industry shift toward securing politically diversified sources of critical minerals.