Feasibility Study Highlights Los Azules as a Model for Responsible Copper Mining
McEwen Copper Inc. has delivered a significant milestone for its flagship Los Azules copper project, confirming robust economics and best-in-class sustainability practices. The newly released feasibility study supports a long-life, low-cost operation that aims to be among the lowest-carbon copper producers globally—a fact that puts the San Juan, Argentina-based project in the global spotlight.
Strong Economic Fundamentals Set the Project Apart
At the heart of the Los Azules feasibility study is a clear business case:
| Key Metric | Result |
|---|---|
| Net Present Value (NPV, after-tax @8%) | $2.94B |
| Internal Rate of Return (IRR, after-tax) | 19.8% |
| Initial Capital Expenditure | $3.17B |
| Payback Period | 3.87 years |
| Mine Life | 21 years |
| Average Copper Production (Years 1-5) | 204,800 t/yr |
| Average Copper Production (LOM) | 148,200 t/yr |
| C1 Cash Cost | $1.71/lb |
| All-In Sustaining Cost (AISC) | $2.11/lb |
Notably, sensitivity analysis shows the project remains resilient even with fluctuations in copper price and capital costs. The after-tax IRR holds above 15% at copper prices as low as $3.74/lb and breaks even at $3.10/lb—highlighting a cushion for volatile markets.
ESG Metrics Place Los Azules in Global Leadership Position
Los Azules sets new standards for environmental and social performance in copper mining:
- 72% lower mine-to-metal carbon intensity versus the industry average
- Uses 100% renewable power (wind, hydro, solar)
- 74% less water use than traditional milling
- No tailings dam—further minimizing risk
- Targets carbon neutrality (Scopes 1 & 2) by 2038
Annual average greenhouse gas emissions of just 1,082 kg CO2-equivalent per tonne of copper position Los Azules at the lowest decile of global copper mines. The adoption of heap leach technology, electrification strategies, and renewable energy supply are all pivotal contributors.
Reserves and Resources Indicate Long-Term Potential
| Category | Tonnage (Mt) | CuT % | Contained Cu (Blb) |
|---|---|---|---|
| Proven & Probable Reserves | 1,023.1 | 0.45 | 10.2 |
| Measured & Indicated Resources* | 965.5 | 0.26 | 5.4 |
| Inferred Resources | 4,239.3 | 0.21 | 20.0 |
*Exclusive of reserves
The 21-year mine plan only scratches the surface: exploration is ongoing, and adoption of advanced leaching technologies like Nuton® (in partnership with Rio Tinto) could unlock a further 30+ years of production, potentially extracting additional value from primary sulfides.
De-risked Development: Permits, Partnerships, and Regulatory Advantages
Permitting hurdles have been cleared, with environmental approval in place and acceptance into Argentina's RIGI large investment regime—guaranteeing 30 years of tax, foreign exchange, and legal stability. Strategic partnerships with heavyweights like IFC (World Bank Group), Stellantis, Rio Tinto (Nuton), and OEMs like Komatsu and Sandvik ensure access to technology and funding, with over $1.1B in indicative financing proposals.
Path to First Production: Timelines and Next Steps
| Milestone | Expected Timing |
|---|---|
| Feasibility Study Filing (NI 43-101) | By Nov 2025 |
| Water Concession Decision | In Review |
| Start Construction | 2026 |
| SX/EW Plant Start-up | 2029 |
| First Copper Cathode | 2030 |
Beyond feasibility, continued exploration (four major near-mine targets), regulatory follow-through, and the Nuton technology opportunity offer a platform for long-term growth. McEwen Copper aims for Argentina’s first regenerative copper mine, demonstrating that economic strength and ESG excellence are not mutually exclusive in the next chapter of mining.
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