03:45 PM EST, 11/28/2024 (MT Newswires) -- Canada's McEwen Copper is scouting for investors to raise $2.5-billion to move forward with construction of Los Azules copper mine in Argentina, company Vice President Michael Meding said in an interview, Reuters is reporting Thursday.

It noted McEwen Copper, part of McEwen Mining ( MUX ) , is among several international companies looking to extract copper in the mountains of northern Argentina, a region largely untapped for the commodity due to the country's tough capital controls and volatile economy.

The report said an incentive program under President Javier Milei is now spurring activity, including from major players such as miner BHP, after the country's only copper mine closed in 2018.

Los Azules is due to receive a key environmental permit in four to six weeks, Meding said. From there, the company hopes around the end of 2025 to start planning for construction. "We have invested more than $400-million to date. And now we are looking for $2.5-billion for capex," Meding told Reuters on Thursday.

Thursday's statement noted the project, expected to produce about 175,000 metric tons of copper a year, aims to qualify for Milei's Incentive Regime for Large Investments, or RIGI, in about three months. The scheme offers 30 years of tax credits, lighter customs duties and a progressive easing of capital controls.

(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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