McEwen Mining Inc. has announced that its 48%-owned subsidiary, McEwen Copper Inc., has finalized an agreement with YPF Luz to supply 100% renewable energy to the Los Azules copper project. Under this exclusive agreement, YPF Luz will design, finance, and construct a high-voltage transmission line to connect Los Azules to the Argentine Interconnection System (SADI). The deal, formalized through a Memorandum of Understanding (MOU), allows for the negotiation of renewable energy supply terms specifically for the Los Azules project in San Juan province. The energy will be sourced from YPF Luz’s renewable assets linked to SADI.

Michael Meding, VP of McEwen Copper and General Manager of the Los Azules project, highlighted that the project will significantly contribute to global decarbonization efforts and enhance San Juan's role in the energy transition. He emphasized that YPF Luz is a key partner in achieving the goal of 100% renewable energy for the project.

YPF Luz CEO Martín Mandarano expressed enthusiasm about the collaboration, noting the importance of sustainable copper production for the energy transition. He emphasized YPF Luz's commitment to delivering tailored energy solutions, including the necessary electrical infrastructure for reliable and renewable power supply.

The MOU builds on the partnership between McEwen Copper and YPF Luz, which began in early 2023 with an initial agreement to explore power supply solutions for the Los Azules project.

YPF Luz (YPF Energía Eléctrica S.A.) is a leading Argentine power generation company, active since 2013. It operates over 15 assets across seven provinces, boasting an installed capacity of 3.2 GW to serve the wholesale and industrial markets. The company is also developing an additional 418 MW of solar and wind energy projects in Córdoba, Mendoza, and Buenos Aires. YPF Luz’s mission is to produce profitable, efficient, and sustainable energy by optimizing natural resources for both thermal and renewable energy generation.

McEwen Copper is a well-capitalized private company that wholly owns the advanced-stage Los Azules copper project in San Juan province, Argentina. As a 48.3%-owned subsidiary of McEwen Mining, which is publicly traded under the ticker MUX on both the NYSE and TSX, McEwen Copper is developing Los Azules to be notably different from traditional copper mines. The project is designed to use significantly less water, reduce carbon emissions, aim for carbon neutrality by 2038, and operate on 100% renewable electricity. The updated Preliminary Economic Assessment (PEA) released in June 2023 indicates a long mine life, a short payback period, low production costs per pound, high annual copper production, and a 21.2% after-tax internal rate of return (IRR).