McEwen Copper's Los Azules project confirmed as economically robust copper mine with strong ESG performance.

McEwen Copper Inc. announces positive results from its Feasibility Study for the Los Azules copper project in Argentina. The study confirms the project as a long-life, low-cost producer of high-purity copper cathodes with strong economic returns and sustainability. The project design reduces its environmental footprint and advances towards construction readiness. A strategic collaboration agreement with IFC may lead to debt financing and additional funding for infrastructure and construction.

McEwen Copper Inc., a subsidiary of McEwen Inc., has announced the completion of a positive Feasibility Study (FS) for its 100%-owned Los Azules copper project in San Juan province, Argentina. The study confirms the project as a long-life, low-cost producer of high-purity copper cathodes with strong economic returns and sustainability. The project design reduces its environmental footprint and advances towards construction readiness.

The FS highlights key economic indicators, including a Net Present Value (NPV) of $2.9 billion at an 8% discount rate, an Internal Rate of Return (IRR) of 19.8%, and a payback period of 3.9 years. The initial capital expenditure is estimated at $3.17 billion, with a projected average annual copper cathode production of 204,800 tonnes per year over the 21-year life of the mine. The project aims to produce 99.99% copper cathodes on-site using a leach + SX/EW process, without the need for a smelter.

The project's sustainability features include a 72% lower mine-to-metal carbon intensity than the industry average, 100% renewable power, and 74% less water use than conventional milling. Additionally, the project aims to achieve carbon-neutrality by 2038. The environmental impact statement (EIA) for construction and operation was approved by the San Juan Provincial Government's Ministry of Mines in December 2024, and the project was accepted into Argentina's Large Investment Incentive Regime (RIGI) in September 2025, providing tax, foreign exchange, and customs stability for 30 years.

A strategic collaboration agreement with the International Finance Corporation (IFC) may lead to debt financing and additional funding for infrastructure and construction. The project has secured preliminary finance proposals from Tier-1 OEMs, YPF Luz, European ECAs, and other investors, with indicative proposals supporting $1.1 billion in equipment and infrastructure financing.

The FS also identifies potential future growth opportunities, such as the use of Nuton® leaching technology or a conventional concentrator to extend mine life by 30+ years. Exploration has shown four porphyry targets near the Los Azules deposit, which could provide further extension to the mine life. The project's construction target is 2026, with SX/EW startup in 2029 and first copper production in 2030.

The project's strategic timing aligns with global copper production forecasts predicting significant copper supply deficits by 2030, driven by electrification trends and renewable energy expansion. The International Copper Association projects global copper demand to increase by over 50% by 2035, making large-scale projects like Los Azules increasingly critical.