Agreement with McEwen Copper
The collaboration signed in recent months between the International Finance Corp. (IFC) and McEwen Copper Inc., a subsidiary of McEwen Inc., marks a milestone on the path toward sustainable financing for the Los Azules project — one of the world’s largest undeveloped copper deposits — located in Calingasta, in Argentina’s San Juan province.
While the agreement is not binding, it enables IFC to act as a potential lender and/or debt arranger, with preferential rights for both debt and equity.
The framework outlines a technical structure that anticipates IFC’s possible role in the project’s capital stack while reinforcing alignment with ESG standards, reducing risk and helping accelerate a potential financial close.
A large-scale project with solid economic fundamentals
The feasibility study, completed in October 2025, outlines an open-pit mine with average annual production of 327 million pounds of copper (148,000 metric tons) over 21 years. The process includes heap leaching for oxides and supergene sulfides, along with solvent extraction-electrowinning (SX-EW) to produce high-purity cathodes.
Measured and indicated resources total 10.9 billion pounds of copper with an average grade of 0.40%. Initial capital expenditures are estimated between $2.3 billion and $3.17 billion, according to recent updates, with a C1 cash cost of $1.50 per pound and a base copper price of $4.35 per pound.
The feasibility study incorporates emerging technologies aimed at extending the mine’s life and reducing its environmental footprint. Among them is Nuton®, a biological leaching system for sulfides that could add more than 30 years to the project’s lifespan.
The plan also calls for trolley-assist haul trucks, in-pit crushing and electric vehicles, potentially cutting energy consumption by 48% and bringing Scope 1 and 2 emissions close to zero. The power supply would be 100% renewable, delivered through a dedicated transmission line.
ESG standards and environmental validation
The agreement with IFC, disclosed in September 2025, focuses on alignment with the institution’s Performance Standards. A gap analysis released in October 2025 addresses key issues such as mitigating impacts on Andean glaciers, recycling more than 90% of water, biodiversity monitoring and community benefit plans.
This framework is complemented by approval of the Environmental Impact Statement in December 2024 and enrollment in Argentina’s Incentive Regime for Large Investments (RIGI) in September 2025, which guarantees fiscal and foreign-exchange stability for 30 years.
IFC’s financial role and the catalytic effect of multilateral capital
IFC could lead a significant portion of the project’s debt, with estimates exceeding $1 billion through syndication structures. Its participation would help attract European export credit agencies, financing from original equipment manufacturers such as Komatsu and Sandvik, and indicative proposals worth more than $1.1 billion for equipment and infrastructure.
From a financial standpoint, IFC’s involvement reduces perceived risk, improves debt terms and streamlines financing structuring. The timeline calls for construction between 2026 and 2027, the start of SX-EW operations in 2029 and first production in 2030.
The potential financing positions Los Azules as a benchmark for sustainable copper mining in Argentina, at a time when a global supply deficit for the metal is projected by 2030. The project is also expected to support regional development, generating up to 3,000 jobs during construction.
IFC’s proactive role highlights how adopting international ESG standards can unlock access to capital for high-quality projects in emerging jurisdictions. However, final closing will depend on meeting conditions, completing due diligence and maintaining macroeconomic stability.