McEwen's copper division has spent $300 million on the project in the Andes mountains that will ultimately require about $3 billion, Michael Meding, vice president of McEwen Copper, told Reuters.
The company is aiming to secure 20% of the total investment, the equivalent of $600 million, as soon as possible next year, he said.
Los Azules expects to produce between 180,000 and 200,000 metric tons of copper annually by 2030, one of the eight major copper projects hoping to benefit from projections of soaring demand for the red metal in the coming years.
Argentina’s substantial copper deposits are largely untapped, and the country has not produced any copper since the Bajo de la Alumbrera mine, then operated by Glencore (GLEN.L), closed in 2018.
In the coming year, Los Azules plans to expand the on-site encampment, build roads and erect electricity lines. Mine construction is slated to begin in 2027, with production starting in late 2029 or early 2030.
"Our main challenge isn't engineering ... it's mobilizing the necessary funding so we can move at the pace we'd like," Meding said.
The project also hopes that $277 million of the investment will qualify for an incentive program launched under President Javier Milei known as the Incentive Regime for Large Investments, or RIGI, meant to light a fuse under major investments.
McEwen Mining is the biggest owner of Los Azules with a 46.4% share, followed by automotive company Stellantis (STLAM.MI) and global miner Rio Tinto's leaching technology unit Nuton.
McEwen recently announced it has produced laboratory-scale cathodes, which Meding called an "important test" for the mine's plans to exclusively produce cathodes.
The mine will use a heap leach production method that will allow it to use five-sixths less water than the traditional flotation and concentrate process, along with other techniques that will reduce its environmental impact, Meding said.
Los Azules has also committed to becoming carbon neutral by 2038, and plans to use renewable energy, mostly solar, from Argentina's state-owned YPF Luz. (YPFDm.BA)
Meding noted that McEwen was competing with other industries, not just mining, to secure funding.
"We need to convince big capital now,” he said.
