McEwen Copper Inc. is in advanced discussions with Rio Tinto Group and other potential investors to secure approximately $4 billion in total financing for the development of the Los Azules copper project in San Juan province, Argentina. According to Managing Director Michael Meding, the financing structure aims to combine equity from multiple sources alongside debt instruments from export credit agencies and traditional project lenders. The equity financing strategy includes approximately $600 million from existing shareholders and another $600 million from a new investor, potentially a trading house or industrial group based in Europe or Asia, alongside investments from specialized mining funds.
Rio Tinto, which currently holds a 17% stake in McEwen Copper through its Nuton venture, is among the parties being negotiated with, though the company declined to comment on specific terms. Chairman Rob McEwen is simultaneously preparing for an initial public offering targeted for the fourth quarter of 2026, aiming to raise approximately $300 million subject to market conditions. The company has already signed an agreement with the International Finance Corporation to support sustainable financing for the project.
Los Azules represents one of Argentina's largest undeveloped copper deposits and is designed to produce an average of approximately 205,000 tons of copper cathode annually during its first five years of operation. The company projects mine development to commence around 2030. Current ownership structure shows McEwen Inc. holding 46%, Rob McEwen holding 13%, and automotive manufacturer Stellantis NV holding 18%, with the company valued at more than $2 billion.
Despite Rio potentially contributing the full $600 million in equity, it would remain a minority investor in the venture. The financing timeline and final investment decision will depend partly on the board's confidence in the complete financing plan. The company intends to begin early construction and procurement activities before full-scale mine development, including securing manufacturing slots for major equipment.
Argentina's improved investment framework under President Javier Milei has created opportunities for copper mining development to deliver substantial investment and export revenue for the country's economy. However, the project still requires completion of detailed engineering and securing outstanding regulatory permits. According to Michael Meding, Rio Tinto's existing involvement with Los Azules provides advantages in project understanding and maintaining the development schedule.
The urgency to develop large undeveloped copper projects has intensified as global copper supplies face tightening conditions and prices trade near record levels. Copper futures were trading at $5.6358 per pound as of the reporting date. Source: Mining.com, Bloomberg News (August 18, 2026)
Source: mining.com