McEwen Copper seeks $4 billion to advance Los Azules, one of Argentina’s largest undeveloped copper projects

The company is in talks with global lenders, export-credit agencies and potential strategic partners to finance the development of the project, which is targeting first production by 2030.

McEwen Copper Inc. is seeking approximately $4 billion in financing to advance Los Azules, one of Argentina’s largest undeveloped copper deposits and one of the country’s most significant mining projects aimed at restoring its role as a copper producer.

The company, a subsidiary of McEwen Mining, is holding discussions with international lenders as part of a financing strategy that includes export-credit agencies and financial institutions from the United States, Europe and Japan. The goal is to build a capital structure that will allow the project to move toward development amid growing international interest in Argentina’s mining sector.

International financing push

According to Michael Meding, managing director of McEwen Copper, the company is in talks with organizations such as the US Export-Import Bank, with financing potentially tied to mining equipment procurement. Discussions also involve the US International Development Finance Corp. as well as financial groups in Europe and Japan, following recent meetings in New York and a site visit by a Japanese delegation.

The proposed financing plan includes 30% to 40% equity, while export-credit agencies could potentially cover up to 85% of equipment costs, particularly for US-made mining equipment such as haul trucks.

Los Azules positioned as a financeable copper asset

McEwen Mining chairman Rob McEwen recently said that Los Azules is already supported by a feasibility study that places it in the second lowest quartile of the global cost curve, strengthening its position as a large-scale and financeable copper asset.

He added that the company is targeting first production by 2030, while continuing to advance the project through the development and financing stages. Los Azules is designed to produce copper cathode rather than concentrate, which would allow it to bypass smelters and supply refined metal directly to end users.

Argentina regains attention from mining investors

McEwen Copper’s financing push comes at a time of renewed global interest in Argentina’s mining industry, supported by changes in the country’s policy and investment environment. Company executives said reforms introduced since late 2023 have improved conditions for investment, reduced inflationary pressures and eased capital movement, creating a more favorable outlook for project financing.

In that context, Los Azules stands out as one of the flagship projects in Argentina’s emerging copper pipeline, as the country seeks to re-enter the copper market after having produced no copper since 2018.

Strategic investors and possible IPO

Current backers of the project include Stellantis and Nuton, a venture linked to Rio Tinto. McEwen Copper is also evaluating the possibility of bringing in additional equity from Rio Tinto or another major mining partner.

At the same time, the company is considering a $300 million initial public offering by year-end, as part of its strategy to strengthen the project’s capital base and support its development plans.

A key project for Argentina’s copper future

Los Azules has a projected 22-year mine life, with the potential to extend to 33 years, and is expected to produce around 205,000 tonnes of copper annually during its first five years, followed by an average of 148,000 tonnes per year thereafter.

The project has also been approved for tax incentives under Argentina’s Large Investment Incentive Regime, part of the government’s broader effort to attract capital into strategic sectors such as mining.

With global copper demand expected to grow due to electrification, the energy transition and new technologies, projects such as Los Azules could play a critical role in positioning Argentina as an important future supplier to the international copper market.