Los Azules copper project secures $240 million loan and plans its own power line

Los Azules has secured $240 million to keep advancing one of Argentina’s most closely watched copper projects, although the financing covers only a fraction of the mine’s estimated $2.7 billion cost.

McEwen Copper said the loan will support engineering, early construction work and corporate needs while it assembles a larger financing package. The Canadian operator expects to make a final investment decision by mid-2027 and projects commercial production in 2030.

The project is also moving ahead with its own electricity infrastructure. McEwen Copper submitted plans for a 220-kilovolt transmission line stretching 122 kilometers from the future mine to the Calingasta transformer station. The line is estimated to cost $300 million, take about 30 months to build and potentially begin construction in January 2027, subject to environmental approval. About 450 workers could be needed at the peak of construction.

Los Azules stands apart from other large copper projects planned in Argentina because it is designed to produce copper cathodes, or refined plates ready for industrial use. Many other projects are expected to produce copper concentrate, which requires additional smelting and refining, often in other markets.

The deposit’s characteristics make the cathode plan possible. Part of its copper can be recovered through a process that produces cathodes at the mine with 99.99% purity, allowing Argentina to export a more processed product. Sprott Natural Resource Investment Partners provided $112 million of the loan, McEwen chairman Rob McEwen contributed $85 million personally, and other lenders supplied the remaining $43 million. The four-year loan carries 12% annual interest, with monthly payments and principal due at maturity.