🇦🇷 McEwen Copper’s Los Azules project in Argentina has officially joined the country’s Large Investment Incentive Regime (RIGI), marking a pivotal advancement for one of Argentina’s largest and most strategic copper mining projects. Located in the San Juan Province near the Chilean border at 3,500 meters elevation, Los Azules is an advanced-stage porphyry copper exploration project with an estimated 29.3 billion pounds of copper resources, along with significant quantities of molybdenum, silver, and gold.
The project anticipates producing an average of 322 million pounds of copper cathode annually over a 27-year mine life, as per the 2023 Preliminary Economic Assessment (PEA). Notably, the development approach has shifted from conventional milling and flotation to a heap leach process combined with solvent extraction-electrowinning, enabling direct production of high-purity copper cathodes within Argentina. This innovation adds value domestically and removes dependency on foreign smelting.
RIGI, established under Law 27,742 (2024), is designed to attract large-scale investments by offering extensive tax, customs, foreign exchange, and legal certainty benefits for 30 years. Mining is a primary sector covered, with incentives including a reduced company tax rate of 25%, a 50% cut in dividend withholding tax, accelerated depreciation for new capital investments, early VAT recovery, and strong legal protections against regulatory changes.
Los Azules’ inclusion in RIGI endorses a substantial USD 2.672 billion investment integrating exploration, construction, and operational phases under a unified strategic plan approved by Argentina’s Ministry of Economy. The project is expected to generate over USD 30 billion in export revenues, significantly boosting Argentina’s mining sector and export economy.
The project emphasizes sustainability, aiming to operate on 100% renewable energy, minimize water use and environmental impact, and reduce its carbon footprint, thereby aligning with modern responsible mining practices. Collaboration with the International Finance Corporation (IFC) further supports adherence to Environmental, Social, and Governance (ESG) standards, enhancing its financing prospects.
Leadership from McEwen Copper highlights that RIGI’s approval reinforces their commitment to sustainable mining and provides enhanced predictability and clarity for engagement with authorities and partners. The regime also signals Argentina’s openness to large investments in critical metals and energy, crucial for securing project financing.
The RIGI program, launched in October 2024 by President Javier Milei’s administration, aims to stimulate investments through at least July 2026, with potential extensions. Other mining projects, such as the Gualcamayo gold mine, are also leveraging RIGI benefits, underscoring the regime’s growing importance in Argentina’s mining investment landscape.
In summary, Los Azules joining RIGI not only secures vital financial and legal incentives but also demonstrates a strong government endorsement of environmentally focused, high-value, long-life copper projects. This development is poised to impact Argentina’s mining sector by attracting investment, fostering sustainable operations, and enhancing the country’s position in the global copper market.
Source(s): https://www.mcewenmining.com/operations/los-azules/default.aspx, https://www.mining-technology.com/news/gualcamayo-gold-mine-invest-665m-rigi-programme/, https://www.youtube.com/watch?v=Tpk6LGwUj9U, https://www.panorama-minero.com/en/news/mc-ewen-copper-s-los-azules-joins-argentina-s-large-investment-incentive-regime-rigi, https://en.wikipedia.org/wiki/Los_Azules_mine, https://invest.inversionycomercio.ar/2025/04/23/119/, https://www.mcewenmining.com/investor-relations/press-releases/press-release-details/2025/McEwen-Coppers-Los-Azules-Joins-Argentinas-Large-Investment-Incentive-Regime-RIGI/default.aspx, https://cnyor.cancilleria.gob.ar/en/5-large-investment-incentive-scheme-rigi-guide-investors, https://mcewenmining.com, https://practiceguides.chambers.com/practice-guides/mining-2025/argentina/trends-and-developments, https://investmentpolicy.unctad.org/investment-policy-monitor/measures/4668/adopts-new-incentive-regime-for-large-investments, https://www.ey.com/en_gl/technical/tax-alerts/argentina-publishes-decree-implementing-incentive-regime-for-large-investments
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