If the request is approved, the project will have access to benefits such as a reduction from 35% to 25% in the corporate income tax rate, relief from paying value-added tax during construction, among others.
Canadian mining company McEwen Copper, a subsidiary of McEwen Mining, has requested that its Los Azules copper project in the Andean province of San Juan be eligible for tax benefits from the Argentine government, the company said in a statement.
Los Azules involves an estimated investment of US$2.7 billion, of which US$227 million has been committed under the Large Investment Incentive Regime (RIGI) to complete the feasibility study, carry out additional exploration and preliminary work to prepare the project to begin construction.
The company estimates an additional investment of $2.5 billion for the construction of the mine and production facilities as a future expansion of the RIGI project, the miner announced in a statement released on Tuesday evening.
The firm noted that once the authority approves Los Azules' accession to the RIGI, the project will have access to benefits such as a reduction from 35% to 25% in the corporate income tax rate, relief from paying value-added tax during construction, exemption from export duties and exclusion from the obligation to enter the profits from exports into the country.
The regime also provides stability for 30 years and access to international arbitration in case of disputes.
"Argentina is once again open for business. The introduction of the RIGI provides both stability and incentives for large-scale infrastructure investments," said Robert McEwen, President and principal owner of McEwen Mining.
With the approval of the environmental permit, the next feasibility study expected in the first half of 2025 and the approval of the application for accession to the RIGI, Los Azules has the potential to begin construction in early 2026, the statement said.
Los Azules, located at 3,500 meters above the Andes mountain range, is one of the eight world-class projects in Argentina, a country that could supply part of the growing global demand due to the energy transition, but which has not produced copper since the closure of the Alumbrera mine in 2018.
