Argentina approved McEwen Copper's Los Azules development for its large-investment incentive regime on September 26, 2025, giving the San Juan project a place in a program designed to attract capital to expensive, long-lived mines. Reuters reported an investment of approximately $2.7 billion and said it was the eighth project approved under RIGI, with $15.7 billion of planned investment across the approved projects. Those are projected investment amounts, not cash already spent or exports already earned.
Copper's potential gives this decision more weight than a routine permit. Reuters noted Argentina had not produced copper since the Alumbrera mine closed in 2018. Across the Andes, other countries are established suppliers; in Argentina, proposed deposits still need finance, engineering and transport before they can compete. Economy Minister Luis Caputo said Los Azules could generate $1.1 billion of annual exports and more than 3,500 direct and indirect jobs. Those are government estimates for an operating project, not current employment or sales.
Tax stability, then capital
McEwen's September 26 filing with the U.S. Securities and Exchange Commission set out an investment plan of $2.672 billion covering exploration, construction and operation. It described the incentive package as including long-term fiscal and customs stability, a 25% corporate tax rate for qualifying investments rather than a general 35% rate, accelerated depreciation and faster recovery of value-added tax. These benefits aim to offset the unusually long time between the first dollar invested and the first dollar earned from copper. They also mean the public gives up some future tax receipts in the expectation of larger investment and exports.
A company filing is an interested source, not an independent appraisal of the resource or financial return. McEwen said the project's environmental declaration for construction and operation had been approved in December 2024. It still listed detailed engineering and financing as conditions before construction. Reuters said the company planned to produce copper cathodes beginning in 2029 and was working toward a feasibility study. Any projected start year depends on permits, funding and building the mine. RIGI admission alone settles none of those operational tasks.
The province and the water question
The project sits in San Juan's mountainous Calingasta area. A mine can bring procurement, employment and royalties to a province but also requires scrutiny of water use and environmental performance. McEwen said its proposed leaching process would use less water than a conventional alternative and that it intended to run on renewable electricity. Those are design claims made before a full-scale plant operates. The relevant comparison for surrounding communities will be monitored consumption and local impacts, not only a company's projected percentage saving.
The government's approval also tests whether the new framework can draw financing from international partners. Reuters identified Stellantis and Rio Tinto-linked Nuton as investors alongside McEwen. Their involvement does not remove commodity-price risk or the need for lenders to trust Argentine rules for years. Copper demand can support a large investment thesis; a market downturn can delay the same project.
What comes next
McEwen needed to finish the feasibility work, arrange capital and move through detailed engineering while meeting provincial obligations. The administration could count Los Azules as an accepted RIGI proposal, but not yet as proof of a copper export revival. Foreign readers should separate those milestones: approval in September 2025, any subsequent construction decision and eventual metal shipped are three different events. Until then, Caputo's export and jobs figures remain ambitions to be tested.
