McEwen's Los Azules copper project approved for Argentina tax break program

[Yellow large dump truck in Utah copper mine seen from above]
RiverRockPhotos/E+ via Getty Images

McEwen (NYSE:MUX [https://seekingalpha.com/symbol/MUX]) settled +5.8% in Friday's trading after saying Argentina's Minister of Economy approved [https://seekingalpha.com/pr/20246183-mcewen-copper-s-los-azules-joins-argentina-s-large-investment-incentive-regime-rigi] its $2.67 billion Los Azules copper project for the government's Large Investment Incentive Regime tax break program.

The project is expected to contribute $1.1 billion per year in exports, Economy Minister Luis Caputo said in a post on X, adding that Los Azules is the eighth project to be approved for the tax break program, raising to $5.7 billion the total investment under the incentive plan promoted by Argentina's President Milei.

McEwen (NYSE:MUX [https://seekingalpha.com/symbol/MUX]) has said it plans to produce copper cathodes in Argentina beginning in 2029, and expects to publish a feasibility study in October showing operational details for the next 20 years, while continuing to work to secure permits.

"This milestone represents a decisive endorsement from Argentina for a project set to become the first in the nation’s mining history to produce high-purity copper cathodes, ready for direct industrial use," McEwen (MUX [https://seekingalpha.com/symbol/MUX]) said.

McEwen (MUX [https://seekingalpha.com/symbol/MUX]) owns a 46.4% stake in Los Azules, while automaker Stellantis (STLA [https://seekingalpha.com/symbol/STLA]) holds 18.3% and Nuton/Rio Tinto (RIO [https://seekingalpha.com/symbol/RIO]) owns 17.2%.

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