Los Azules copper project approved for Argentina's investment incentive regime

TORONTO/BUENOS AIRES - McEwen Copper Inc., whose parent company McEwen Mining (MUX) has seen its stock surge nearly 87% over the past six months according to InvestingPro data, announced Friday that its Los Azules copper project has been approved to participate in Argentina's Large Investment Incentive Regime (RIGI), as confirmed by Economy Minister Luis Caputo.

The approval encompasses a $2.67 billion investment plan covering exploration, construction, and operational phases of the copper mining project located in Calingasta, San Juan Province. For investors tracking McEwen Mining's financial stability, InvestingPro analysis shows the company maintains a healthy current ratio of 2.35 and operates with moderate debt levels, crucial factors for such a significant project undertaking.

Los Azules is positioned to become Argentina's first mining project to produce high-purity copper cathodes for direct industrial use. According to the company's Preliminary Economic Assessment published in June 2023, the project is expected to generate more than $30 billion in export revenues over its 27-year mine life.

The RIGI framework provides McEwen Copper with legal, fiscal, and customs stability for 30 years. Key benefits include a reduced corporate tax rate of 25% instead of the standard 35%, a 50% reduction in dividend withholding tax, accelerated depreciation for capital investments, early VAT recovery, and streamlined customs procedures.

"The integration of Los Azules into the RIGI under a single strategic investment plan enhances operational predictability and establishes a clear framework for engagement with the State and future partners," said Michael Meding, Vice President of McEwen Copper and General Manager of the Los Azules Project.

The project received its Environmental Impact Declaration for construction and operation in December 2024, and its feasibility study is expected to be completed by the end of October 2025.

McEwen Copper, which is 46.4% owned by McEwen Inc., plans to operate Los Azules entirely on renewable energy and aims to achieve carbon neutrality by 2038, according to the press release statement.

The company indicated that with these regulatory approvals in place, the project is positioned to begin construction, subject to detailed engineering and securing financing. With McEwen Mining's market capitalization currently at $847 million and a "Good" overall financial health score according to InvestingPro, which offers comprehensive analysis of over 1,400 US stocks through its Pro Research Reports, the company appears well-positioned to advance this transformative project.

In other recent news, TEGNA Inc. reported a 5% decline in revenue for the second quarter of 2025, bringing total revenue to $675 million. The decrease was attributed to a challenging advertising market, with a notable drop in Advertising and Marketing Services revenue and a flat performance in distribution revenue. Meanwhile, McEwen Copper Inc., a subsidiary of McEwen Inc., signed a collaboration agreement with the International Finance Corporation (IFC) to align its Los Azules copper project with IFC's environmental, social, and governance standards. This agreement is a strategic step in potentially securing future financing from the IFC, which is part of the World Bank Group. Additionally, McEwen Inc. appointed Ian Ball as Vice-Chairman to support its strategic growth initiatives. Ball's focus will be on driving medium to long-term growth strategies, including efforts to double production by 2030. These developments reflect the companies' ongoing efforts to navigate their respective industry challenges and growth opportunities.

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