Dual-listed McEwen Copper has reported a positive feasibility study (FS) for its 100%-owned Los Azules copper project, in Argentina, confirming a long-life, low-cost operation producing high-purity copper cathodes with strong economic returns and leading sustainability performance.
The study estimates an after-tax net present value of $2.9-billion at an 8% discount rate and an internal rate of return (IRR) of 19.8%, with a payback period of 3.9 years on an initial capital investment of $3.17-billion.
Average production over the first five years is projected at about 204 800 t/y of copper cathode, with life-of-mine production averaging 148 200 t/y over 21 years.
C1 cash costs are estimated at $1.71/lb and all-in sustaining costs at $2.11/lb. Proven and probable reserves total 10.2-billion pounds of copper.
Designed around an on-site leach and solvent extraction/electrowinning process, Los Azules will produce 99.99% copper cathodes without the need for a smelter. The project is expected to achieve a 72% lower mine-to-metal carbon intensity than the industry average, use 74% less water than conventional milling, and operate on 100% renewable power from wind, hydro and solar sources. McEwen Copper is targeting carbon neutrality (Scopes 1 and 2) by 2038.
“The Los Azules feasibility study is more than a technical milestone – it is a blueprint for the future of copper mining,” said McEwen chairperson and chief owner Rob McEwen. “We have delivered a plan for a long-life asset that will play a role in the world’s clean-energy transition.”
Vice president and Los Azules GM Michael Meding added that the company aimed to create “Argentina’s first regenerative copper mine – a model for responsible and innovative mining.”
Project risk has been further reduced through a collaboration agreement with the International Finance Corporation (IFC), which may lead debt financing, and through preliminary financing proposals from Tier-1 suppliers such as Komatsu and Sandvik, as well as YPF Luz and European export credit agencies. Indicative proposals could support over $1.1-billion in equipment and infrastructure financing.
Construction is targeted for 2026, with SX/EW start-up in 2029 and first copper in 2030.