McEwen Mining (NYSE: MUX)(TSX:MUX) announced a development for its Los Azules copper project on Tuesday. The Environmental Impact Assessment (EIA) for the project has been approved by the San Juan province in Argentina, moving the proposed mine closer to the construction phase, potentially as soon as 2026. The approval marks a significant milestone for the project, which is expected to become a major contributor to Argentina’s mining sector and a key player in the global copper industry.

Located 80 kilometers west-northwest of the town of Calingasta and just six kilometers from the Chilean border, Los Azules sits at an elevation of 3,500 meters in the Andes Mountains. According to a preliminary economic assessment published in 2022, the project is estimated to produce approximately 322 million pounds of copper annually in cathodes over a 27-year lifespan. The copper resources are reported at 10.9 billion pounds in ore with an average grade of 0.40% copper in the indicated category, and 26.7 billion pounds of material grading 0.31% copper in the inferred category.

McEwen Mining describes Los Azules as a “multi-generational green copper asset,” emphasizing sustainability in its design and operations. Rob McEwen, the company’s executive chairman, has previously articulated a vision for Los Azules as a model of sustainability, innovation, and economic efficiency.

The project is set to adopt cutting-edge technology to minimize environmental impact. It plans to use less than 25% of the water required by conventional copper processing methods, reduce carbon emissions by more than half, and consume less than half the energy typically needed. Power for the site will come entirely from renewable energy sources supplied by the Argentine state-owned company YPF Luz.

An important component of the project’s technological edge is the involvement of Nuton, a venture by Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO). Nuton specializes in proprietary heap leaching technology, which could enhance efficiency and reduce environmental impacts. Nuton recently reinforced its support for Los Azules by investing $35 million, increasing its stake in McEwen Copper, the subsidiary managing the project.

The EIA approval underscores the San Juan province’s support for mining initiatives and copper extraction. McEwen Mining submitted the EIA in April 2023, with the document prepared by engineering firm Knight Piesold and a team of 22 experts.

Michael Meding, Vice President and General Manager of McEwen Copper, commented in a press release: “This milestone propels Los Azules forward and highlights its transformative potential for the province and Argentina’s mining industry.”

San Juan’s government has expressed consistent support for mining projects, seeing them as opportunities to enhance economic development in the region. The province has established itself as a significant hub for Argentina’s mining activities, and the approval of Los Azules aligns with its strategic goals.

With the EIA approved, McEwen Mining is preparing for the definitive feasibility study, expected in the first half of 2025. This study will determine the precise technical and economic parameters for the project. Construction is anticipated to begin by late 2025 or early 2026, provided the project clears additional regulatory and financial hurdles.

The company plans to raise $2.5 billion to fund construction. Speaking to Reuters recently, Meding confirmed that the EIA approval was a key step toward this fundraising effort, enabling McEwen Mining to engage with investors with greater confidence.