McEwen Mining (NYSE: MUX) (TSX: MUX) announced Tuesday that the environmental impact assessment (EIA) for its Los Azules copper project has been approved by Argentina’s San Juan province, paving the way for its construction as early as 2026.
Commenting on the project’s environmental approval, Robert McEwen said: “Our commitment to modern, sustainable and regenerative mining practices at Los Azules is reflected in our PEA and EIA, and we continue this work through our upcoming definitive feasibility study.”
According to a preliminary economic assessment released last year, the Los Azules project is anticipated to produce approximately 322 million lb. of copper in cathodes over an estimated 27-year life. Current copper resources are 10.9 billion lb. in ore that grades 0.40% copper in the indicated category and 26.7 billion lb. in material averaging 0.31% copper in the inferred category.
The deposit is located about 80 km west-northwest of the town of Calingasta and 6 km east of the border with Chile, at an elevation of 3,500 metres in the Andes Mountains.
Aside from its production profile, the Los Azule project is also being developed as “a multi-generational green copper asset,” as McEwen Mining describes on its website.
In an interview with The Northern Miner earlier this year, Rob McEwen said he envisions Los Azules “a leader in sustainability, innovation and economic viability.” The mine would use less than a quarter of the water required by conventional copper processing methods, emit less than half the carbon and consume less than half the power.
Additionally, all the electricity is to come from renewable sources, provided by the Argentine state-owned company YPF Luz. The project also has the backing of Nuton, a Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) venture that has developed a propriety heap leaching technology that is being tested by many other copper mine developers. Nuton recently upped its stake in McEwen Copper, the subsidiary holding the Los Azules project, by investing $35 million.
The approval of its environmental impact study, says McEwen Mining, highlights the support for this project and copper mining as a whole in the province of San Juan. The company first submitted the IEA in April 2023, which was compiled by engineering company Knight Piesold and supported by a team of 22 experts.
“This milestone propels Los Azules forward and highlights its transformative potential for the province and Argentina’s mining industry,” Michael Meding, VP and general manager of the McEwen Copper unit, said.
Meding recently told Reuters that the key environmental permit for Los Azules was due in four to six weeks, and once received, the company would start planning for construction around the end of 2025. He also said it plans to raise $2.5 billion to fund the construction.
Now with the EIA approval in place, the next step for the Los Azules project is the definitive feasibility study, which is expected in the first half of 2025.
Shares in McEwen Mining shot up 10.5% to C$12.96 on Tuesday morning in Toronto following its receipt of this key approval. The stock surge gives the company a market capitalization of C$685.9 million.
