Febrero 2, 2024 - < 1 min

McEwen's bet on copper in Argentina

Deregulation proposed by Argentina's new president, Javier Milei, is generating cautious enthusiasm for the development of a US$2.5 billion mine in San Juan province.


Robert McEwen, founder of Goldcorp, once one of the world's largest gold producers, and current CEO of McEwen Copper, hopes to raise US$100 million to finance the engineering and feasibility work for the Los Azules copper project that the company has in Argentina, which would require an investment of US$2.5 billion for its development. The businessman said in an interview that he is in talks with current shareholders of the company, such as the automotive company Stellantis and the mining company Rio Tinto, and other investors for this capital injection.

For McEwen, new Argentine President Javier Milei's plans to eliminate restrictions and excess regulations affecting the mining sector have created a favorable environment for mining projects in Argentina. In the case of Los Azules, he believes that it will be able to apply as a major infrastructure project to access a number of tax incentives that Milei is proposing in the legislative reform package he has sent to Congress.

The Los Azules project is betting on the sharp increase expected in copper demand towards the end of the decade due to the energy transition and the decarbonization of the economy. Los Azules has already signed an agreement with YPF Luz, the Argentine state-owned oil company's electricity subsidiary, to supply itself with renewable energy, and plans to use a leaching method to obtain copper, which aims to establish itself as a zero-carbon copper mine.

The current negotiations to raise this US$100 million are also serving to socialize the project and generate interest among potential investors to participate in future financing rounds, McEwen said in an interview. to participate in future financing rounds, McEwen said in the interview.