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

McEwen

12/02/2025 16:06

BUENOS AIRES, Feb 12 (Reuters) - Canadian miner McEwen
Copper, a subsidiary of McEwen Mining  MUX.TO , 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.

 (Reporting by Lucila Sigal; Writing by Kylie Madry; Editing by
Jan Harvey)
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