The Los Azules copper project from McEwen Mining Inc. - long?life open-pit and a bold Phase 1 plan

Reviewed: ad hoc news B2B & Pro desk. Edited and checked on 2026-06-28, 00:52. Details in the imprint.

The Los Azules copper project from McEwen Mining Inc. sits high in Argentina’s San Juan Andes, with drills, trucks and surveyors carving tracks into pale-blue morning frost as the first light hits the ridgeline. It is not a polished retail product, but a massive B2B copper asset that could feed smelters for decades. Walk up to the exploration camp and you hear generators, clanking drill rigs and the quiet hum of engineers comparing fresh core samples.

What Los Azules aims to be

On paper, the Los Azules copper project is planned as a large, long?life open?pit mine focused mainly on copper, with secondary gold and silver. According to McEwen Mining’s published 2024 preliminary economic assessment (PEA), the mine design targets a 27?year operating life based on current resource assumptions. That PEA is the baseline for investors, lenders and potential strategic partners evaluating the project’s industrial potential.

The flagship concept in the latest PEA is a staged development approach, starting with a Phase 1 operation producing about 50,000 tonnes of copper per year in concentrate. McEwen Mining describes an initial focus on higher?grade material near surface to improve project economics in the early years. That staged plan is intended to reduce initial capital outlay compared with a full?scale build from day one.

How the project is being advanced

Rob McEwen, the founder and chief owner of McEwen Mining, has made Los Azules his central growth story, repeatedly calling it a “world?class” copper opportunity in investor presentations. He appears in site videos wearing a hard hat, standing beside drill core racks and pointing out thick bands of sulphide mineralization. Those clips serve as tangible reassurance for investors that the project is progressing beyond paper studies and PowerPoint slides.

On the ground, the company reports that environmental baseline studies, hydrological assessments and permitting work for Los Azules are ongoing in coordination with authorities in San Juan Province. The project is being advanced inside Argentina’s nationally promoted “Copper Opportunity Corridor”, which aims to streamline responsible mine development. In parallel, McEwen Mining has set up a dedicated subsidiary structure that could facilitate future joint ventures or partial project sales.

Key numbers from the PEA

The 2024 PEA for Los Azules outlines a Phase 1 capital cost estimate of about US$1.3 billion, covering mine, plant and infrastructure. For the subsequent Phase 2 expansion to a 100,000?tonne?per?year copper output, the PEA sketches an additional US$1.6 billion in capital spending. Investors watch those numbers closely because cost inflation in global mining has become a recurring risk factor.

From a technical angle, the PEA assumes a conventional open?pit with truck?and?shovel mining and a concentrator using flotation to produce copper concentrate. Project engineers plan to tap local glacial meltwater and groundwater for process water, while evaluating options for dry?stack tailings to reduce long?term environmental footprints. Smelters in South America and potentially Asia are considered as customers for the concentrate.

Logistics and infrastructure challenges

Los Azules sits roughly 3,600 meters above sea level, which means trucks, construction crews and future operators must travel on steep access roads that can be covered by snow or loose rock depending on the season. Anyone visiting the exploration camp feels the thinner air and the sharp cold, particularly at night when temperatures drop below freezing. This terrain makes every infrastructure decision, from road alignments to power lines, more complex than on flatter ground.

To tackle those constraints, McEwen Mining is evaluating power supply options including potential connections to Argentina’s grid and onsite generation. The company also highlights plans for a concentrate pipeline from the mine to a lower?altitude transfer point. That pipeline concept is meant to cut truck traffic and associated dust and emissions, but it will demand careful environmental and community consultation.

Community and ESG commitments

In its ESG reporting, McEwen Mining emphasizes commitments to local employment, training and procurement around Los Azules, particularly in San Juan Province’s Calingasta department. Company representatives have held public information meetings with residents, local businesses and authorities to explain exploration work and potential future impacts. At those meetings, project managers stress that formal construction cannot start without permits and detailed environmental approvals.

The company’s sustainability narrative for Los Azules includes references to water stewardship, biodiversity management and tailings safety. McEwen Mining states that it aims to align the project with international frameworks such as the Initiative for Responsible Mining Assurance (IRMA), though certification processes are still at early stages. For institutional investors, those ESG commitments are increasingly part of the investment case.

Where Los Azules fits in the copper market

Analyst commentary on Argentina’s copper pipeline often lists Los Azules among a handful of large undeveloped projects that could help bridge expected global supply gaps later in the 2030s. Copper demand is being driven by electrification trends, from electric vehicles to grid upgrades, high?voltage lines and renewable energy installations. Any sizable new project attracts attention from traders and downstream industrial users.

However, Los Azules is still in the study and permitting phase, so it does not yet contribute physical tonnes to the market. That means smelters, refiners and traders must treat it as a future option rather than a current supply source. For McEwen Mining, the project is nevertheless central to equity valuation scenarios and potential strategic deals, including partial project sales or joint ventures with major copper producers.

Context for McEwen Mining shares

Los Azules is one of several assets in McEwen Mining’s portfolio, but it stands out due to its copper focus and scale compared with the company’s precious metals operations. On June 26, 2026, McEwen Mining Inc shares (ISIN US58039P1075) closed on the NYSE at 17.96 US dollars. All told, the progress and risk profile of Los Azules will remain a key lens through which many investors view the company.

This article was AI-assisted and editorially reviewed. Product information without guarantee; prices and availability may change at short notice. No investment advice, no buy or sell recommendation. Stock-market transactions involve risks up to total loss.

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