Milei's government approved a new mining project in the RIGI for USD 2.7 billion

The Government of Javier Milei has approved the Los Azules copper mining project, owned by Canadian company McEwen Copper, with an estimated investment of 2.7 billion dollars under the Regime of Incentives for Large Investments (RIGI).

According to the Minister of Economy, Luis "Toto" Caputo, this Friday, the initiative will generate annual exports of 1.1 billion dollars and will employ more than 3,500 people directly and indirectly.

The Los Azules deposit, located in the province of San Juan, is considered one of the eight world-class projects in the country. Argentina has not produced copper since 2018, after the closure of the Alumbrera mine, so this development seeks to take advantage of the growing global demand linked to the energy transition.

"This is the first copper mining project called Los Azules, in the province of San Juan. The total investment is USD 2.7 billion. The project will employ more than 3,500 people directly and indirectly," Caputo highlighted on his X account.

"RIGI gives us benefits for the investment we make. Now we have to go out and seek financing for those 3 billion dollars. That investment will be made over a period of three to four years," company sources told Reuters after the official announcement.

The mining company plans to begin production of copper cathodes in 2029 and expects to soon release its feasibility study, which will detail how the operation will be developed over the next two decades, while advancing with the acquisition of sectoral permits.

Regarding its shareholding structure, McEwen Mining holds a 46.4% stake in Los Azules, while automaker Stellantis owns 18.3% and Nuton/Río Tinto holds 17.2%.