McEwen Copper's Los Azules accepted into Argentina RIGI

Executive Summary

• Los Azules copper project received approval to join Argentina’s Large Investment Incentive Regime (RIGI), unlocking a $2.672 billion investment plan covering exploration, construction and operations.
• The RIGI status provides 30‑year legal, fiscal and customs stability—including a reduced corporate tax rate (25 % vs. 35 %), lower dividend withholding tax, accelerated depreciation and streamlined import/FX procedures.
• Projected to generate >$30 billion in export revenues and deliver substantial foreign‑currency inflows, the approval positions Los Azules as Argentina’s first high‑purity copper cathode producer powered entirely by renewable energy.

Key Details

• RIGI Approval: Confirmed by Argentine Minister of Economy Luis Caputo; inclusion grants long‑term stability for Los Azules.
• Investment Scope: $2,672 million (U.S.) consolidated under a single plan covering all project phases—from exploration to full‑scale operation.
• Economic Impact: Forecast >$30 billion in export revenues (PEA base case, June 2023); significant net foreign‑currency inflow; creation of jobs and tax revenue at provincial and national levels.
• Fiscal Incentives:
• Corporate income tax reduced to the 25 % lowest bracket.
• Dividend withholding tax cut by 50 %.
• Accelerated depreciation for new capital assets.
• Early VAT recovery and long‑term tax stability.
• Customs & FX Benefits: Simplified import of capital goods, facilitated debt repayment, and streamlined foreign‑exchange procedures.
• Project Highlights:
• First Argentine mine to produce high‑purity copper cathodes for direct industrial use.
• Designed for minimal water usage, low carbon emissions, and full reliance on renewable electricity (goal: carbon neutrality by 2038).
• PEA (June 2023) estimates after‑tax NPV of $2.7 billion (8 % discount), 27‑year mine life, 10.9 bn lbs indicated Cu at 0.40 % and 26.7 bn lbs inferred Cu at 0.31 %.
• Timeline:
• Environmental Impact Declaration approved Dec 2024.
• Feasibility study on track for completion by Oct 2025.
• Construction to commence pending detailed engineering and financing.
• Next Steps: Continue aggressive exploration around Los Azules to potentially expand resource size and life; secure project financing under the RIGI framework.

Notable Quotes

“This approval reinforces McEwen Copper's long‑term commitment to Argentina… 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.” – Michael Meding, Vice‑President & General Manager, Los Azules

“The RIGI sends a powerful message to international investors: Argentina is open to supporting long‑term projects in energy and critical metals… It marks a decisive step that allows us to advance the development and unlock the potential of a copper deposit of global significance.” – Rob McEwen, Chairman & Chief Owner, McEwen Inc.