McEwen Copper requests major tax breaks for Los Azules mine in Argentina

Canadian miner McEwen Copper, a subsidiary of McEwen Mining, has submitted a request to join an Argentine government incentives program that would give it significant tax breaks for its Los Azules copper project in San Juan province, it said.

McEwen plans to invest $2.7 billion in the mine. It has committed $227 million under the Argentine government’s Large Investment Incentive Regime (RIGI) to carry out the mine’s feasibility study, do exploration works, and prepare for construction.

The company could pour an additional $2.5 billion into the site to build the mine and production facilities under the incentives mechanism if approved, it said in a statement late on Tuesday.

Once the government gives McEwen the green light, its corporate tax rate for the Los Azules project will fall from 35% to 25%, and it will be exempt from value-added tax during construction and from export duties.

“Argentina is once again opening its doors to business activity,” said Robert McEwen, head and top stakeholder in McEwen Mining.

Los Azules could kick off construction in early 2026, pending environmental permits, a feasibility study and the RIGI tax approval, the firm said.

The mine is one of Argentina’s prime copper projects, located 3,500 meters above sea level in the Andean mountain range.

Argentina is mineral rich and could be key to meeting growing demand for copper due to the energy transition, but it has not produced the metal since 2018 when the Alumbrera mine was shuttered.

(By Lucila Sigal and Kylie Madry; Editing by Jan Harvey)