McEwen Copper Unveils Feasibility Study for Los Azules Copper Project

What's Happening?

McEwen Copper has released a positive feasibility study for its Los Azules copper project in Argentina, outlining plans for a long-life, low-cost operation producing high-purity copper cathodes. The study projects an after-tax net present value of $2.9 billion and an internal rate of return of 19.8%, with a payback period of 3.9 years on an initial capital investment of $3.17 billion. The project is designed to produce 99.99% copper cathodes using an on-site leach and solvent extraction and electrowinning process, eliminating the need for a smelter. Los Azules aims to achieve significant sustainability performance, including a 72% lower mine-to-metal carbon intensity and 100% renewable power usage. McEwen Copper is targeting carbon neutrality by 2038, positioning the project as a model for responsible and innovative mining.

Why It's Important?

The Los Azules copper project represents a significant advancement in sustainable mining practices, with potential implications for the global copper industry. As demand for copper increases due to the clean-energy transition, projects like Los Azules could play a crucial role in meeting supply needs while minimizing environmental impact. The project's focus on renewable energy and reduced carbon intensity aligns with broader industry trends towards sustainability and responsible resource extraction. Successful implementation of the feasibility study could enhance McEwen Copper's reputation and influence future mining projects, encouraging other companies to adopt similar practices. Additionally, the project's economic viability and strong returns could attract investment and support from financial institutions and stakeholders.

What's Next?

McEwen Copper plans to begin construction of the Los Azules project in 2026, with startup of the solvent extraction and electrowinning process expected in 2029 and first copper production in 2030. The company is working on securing financing and reducing project risk through collaborations with the International Finance Corporation and Tier-1 suppliers. As the project progresses, McEwen Copper will need to navigate regulatory approvals, community engagement, and environmental assessments to ensure successful development. The mining industry will be closely monitoring the project's advancements, as its success could influence future copper mining strategies and sustainability initiatives.