McEwen Copper seeks argentine tax incentives for $2.7 billion Los Azules Project

If the incentives are approved and construction begins on schedule, Los Azules could significantly boost the country’s copper production and attract further foreign investment into its mining sector.

Canadian mining company McEwen Copper, a subsidiary of McEwen Mining, has applied to join Argentina’s Large Investment Incentive Regime (RIGI), aiming to secure substantial tax benefits for its Los Azules copper project in San Juan province.

The company plans to invest $2.7 billion in developing the mine, with an initial commitment of $227 million under the RIGI program. This investment will fund feasibility studies, exploration, and early construction preparations. If approved, McEwen Copper could invest an additional $2.5 billion in building the mine and production facilities.

Tax Breaks and Investment Incentives

McEwen Copper stands to gain significant financial benefits from the Argentine government if the application is approved. The RIGI program would reduce the corporate tax rate for the Los Azules project from 35% to 25%, provide an exemption from value-added tax (VAT) during construction, and eliminate export duties.

“Argentina is once again opening its doors to business activity,” said Robert McEwen, chairman and principal shareholder of McEwen Mining. The company’s move signals growing confidence in Argentina’s mining policies as the country seeks to attract foreign investment.

Strategic Importance of Los Azules

The Los Azules project is regarded as one of Argentina’s most promising copper deposits. Situated at 3,500 meters above sea level in the Andes, the mine is expected to play a crucial role in meeting rising global copper demand, particularly as industries transition toward clean energy technologies.

Pending environmental permits, feasibility study results, and the approval of RIGI tax incentives, construction of Los Azules could commence as early as 2026.

Argentina’s Copper Outlook

Despite being mineral-rich, Argentina has not produced copper since 2018, when the Alumbrera mine ceased operations. With the global shift toward electrification and renewable energy, copper is increasingly seen as a strategic resource. If Los Azules progresses as planned, it could mark Argentina’s return as a key player in the international copper market.