IFC Supports McEwen Copper for Sustainable Financing of Los Azules
In a significant move towards sustainable financing, the International Finance Corporation (IFC) has collaborated with McEwen Copper Inc., a subsidiary of McEwen Inc. (NYSE: MUX) (TSX: MUX), to align the Los Azules copper project with IFC’s environmental, social, and governance (ESG) standards for potential future debt and equity financing. The project, situated in Argentina's San Juan province, is one of the largest undeveloped copper deposits globally.
Key details of the collaboration include the completion of the feasibility study by October 2025 and the application for Argentina's large investment incentive regime (RIGI). The project has secured environmental impact declaration (EIA) approval and is positioned to begin construction upon completion of final engineering and securing financing.
The collaboration emphasizes integrating IFC’s performance standards on environmental and social sustainability into the development of Los Azules. This initiative is intended to de-risk the project, align it with the criteria required for international investors, and support Argentina's mining sector by promoting greater transparency, reduced carbon emissions, and community benefits.
The collaboration has been lauded by key stakeholders. Manuela Adl, IFC’s senior country manager for Argentina, expressed pleasure in collaborating with McEwen Copper on the Los Azules project to help align it with IFC performance standards and lay the ground for international project financing. Rob McEwen, chairman and chief owner of McEwen Inc., commented that the collaboration will help align the project with top-tier sustainability standards while driving value for shareholders and Argentina.
McEwen Copper's Vice President and General Manager, Michael Meding, also expressed excitement about collaborating with IFC experts to embed IFC’s performance standards into their design and operations, noting that this proactive ESG integration, paired with a solid financing framework, bolsters Los Azules' path to success and elevates its appeal to global investors.
The Los Azules copper project aims to be Argentina's first regenerative copper mine, targeting carbon neutrality by 2038. The project is designed to be distinctly different from conventional copper mines by consuming significantly less water, emitting much lower carbon, and operating on 100% renewable electricity.
This collaboration is a significant step towards aligning the Los Azules copper project with sustainable financing and international standards, marking a pivotal moment in the project's development and its appeal to global investors. The market has reacted to these announcements by moving the company's shares 5.78% to a price of $15.55. Check out the company's full 8-K submission here.