McEwen Mining Inc (TSE: MUX) (NYSE: MUX) (FRA: US8) is advancing plans to finance one of Argentina’s largest undeveloped copper projects, as its subsidiary McEwen Copper seeks roughly USD$4 billion to build Los Azules.
McEwen Copper, a subsidiary of McEwen Mining, is in talks with global lenders and export-credit agencies to structure a funding package tied to equipment sourcing. Additionally, managing director Michael Meding said on Monday that discussions include agencies such as the US Export-Import Bank and the US International Development Finance Corp.
Meanwhile, financial institutions in Europe and Japan have also joined talks following meetings in New York and a recent site visit. The financing plan targets 30 to 40 per cent equity, while export-credit agencies could cover up to 85 per cent of equipment costs.
Furthermore, the structure would prioritize financing for US-made mining equipment, including haul trucks and processing systems. Meding said potential partners have already spent millions of dollars on due diligence, signalling serious interest in the project.
Chairman Rob McEwen described Los Azules as a competitive asset positioned in the second lowest cost quartile globally. Consequently, he said the project is considered financeable and continues to move through development and funding stages.
The company is targeting first production by 2030 as it advances engineering, permitting and financing efforts. Additionally, McEwen said Los Azules will produce copper cathode rather than concentrate, allowing direct sales to end users without smelting.
That approach could reduce costs and simplify logistics compared with traditional copper operations. Meanwhile, it aligns with growing demand for refined copper used in electrification and renewable energy systems.
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Argentina could re-emerge as a major supplier
The financing push comes as Argentina attracts renewed investor interest following economic reforms under President Javier Milei. McEwen said recent policy changes aim to reduce inflation, cut taxes and remove capital controls.
Furthermore, those reforms now allow capital to move more freely, which has improved investor confidence. He added that meetings with global financial leaders have reflected stronger optimism about Argentina’s mining sector.
Provincial governments have also increased support for mining projects as the country looks to rebuild its copper industry. Consequently, Argentina could re-emerge as a major supplier amid rising global demand for critical minerals.
Backers already include Stellantis NV (NYSE: STLA) and Nuton, a venture of Rio Tinto (NYSE: RIO), which both hold stakes in the project. Additionally, McEwen Copper is evaluating a potential USD$300 million IPO by year-end to raise further equity.
The company may also bring in another major partner, including a possible expanded role for Rio Tinto. Meanwhile, that additional investment could help finalize the capital structure required to move into construction.
Los Azules is expected to operate for 22 years, with potential to extend to 33 years. It is projected to produce 205,000 tonnes of copper annually during its first five years, then average 148,000 tonnes afterward.
Argentina has not produced copper since 2018, leaving a gap in global supply. However, projects like Los Azules could restore output as demand rises for electrification and infrastructure metals.
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