McEwen Copper, a subsidiary of Canadian gold and silver producer McEwen Mining, is seeking investors to raise $2.5bn (£3.51bn) to develop the Los Azules copper mine in Argentina, reported Reuters, citing the company's vice-president Michael Meding.

The Los Azules advanced-stage porphyry copper exploration project is located in the pro-mining province of San Juan.

The mine is projected to have average annual production capacity of 322mlb of copper cathode. It will have an operational life of 27 years, according to the updated Preliminary Economic Assessment completed in 2023.

Argentina President Javier Milei earlier launched a new incentive programme to revive activity in the mining sector following the closure of its only copper mine in 2018. The programme is attracting major industry players such as BHP.

Meding said that the Los Azules mine is expected to receive an environmental permit in the next four to six weeks.

McEwen Copper is planning to commence project construction by the end of 2025.

Meding was quoted by Reuters as saying: “We have invested more than $400m to date. And now we are looking for $2.5bn for capex [capital expenditure].”

The mine is also expected to benefit from President Milei's Incentive Regime for Large Investments, which offers a range of financial incentives including reduced customs duties, 30 years of tax credits and the gradual relaxation of capital controls.

Stellantis and Nuton, a subsidiary of global mining giant Rio Tinto, also owns stakes in the Los Azules project.

Additionally, Argentine state-owned enterprise YPF Luz has committed to supplying 100% renewable energy to the mine, with a focus on solar power, Meding said.

“We ticked many of the boxes that make it interesting for a possible European investment,” he added.