BUENOS AIRES, Nov 28 (Reuters) - 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.

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.

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.

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.

Carmaker Stellantis ( STLA ) and Nuton, a unit of global

miner Rio Tinto, both hold minority shares of Los

Azules, located in San Juan province. Nuton increased its stake

with an investment of $35 million in October.

Argentine state-owned company YPF Luz has agreed to provide

the mine with 100% renewable energy, mainly solar, Meding said.

European Union officials recently visited the site, and

Meding said he discussed with them the project's social and

environmental standards.

"We ticked many of the boxes that make it interesting for a

possible European investment," Meding said.