McEwen Mining Partners for 100% Renewable Energy in Copper Project
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100% Renewable Energy Initiative for Los Azules Copper Project
McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) has announced an exciting partnership that will pave the way for sustainable energy use in its Los Azules copper project. The company, through its 48%-owned subsidiary McEwen Copper Inc., has secured an agreement with YPF Luz to supply 100% renewable energy for the project.
Details of the Renewable Energy Agreement
The exclusive agreement will facilitate the provision of renewable energy via a sophisticated high-voltage transmission line. In this agreement, YPF Luz will handle the development and financing aspects, marking a significant step for both companies in their commitments to environmental sustainability.
Memorandum of Understanding Signed
McEwen Copper and YPF Luz have also entered a Memorandum of Understanding (MOU), which allows for exclusive negotiations surrounding energy supplies for the Los Azules project. This initiative emphasizes the use of renewable energy sources that align with Argentina's broader sustainability goals.
Connection to Interconnection System
The MOU includes plans for connecting the Los Azules project to the Argentine Interconnection System (SADI). YPF Luz will oversee the design, construction, and financing of this integration, ensuring that the project utilizes energy sourced directly from YPF Luz’s renewable assets connected to SADI.
Statements from Company Leaders
Michael Meding, VP of McEwen Copper, highlighted the significance of Los Azules by stating that it will greatly contribute to Argentina's decarbonization efforts. He mentioned that the project's geological potential positions San Juan prominently on the map of resources essential for the global energy transition. Meding noted YPF Luz as a vital strategic ally in their pursuit of achieving 100% renewable energy usage.
On the other hand, Martín Mandarano, CEO of YPF Luz, expressed enthusiasm about collaborating with McEwen Copper, emphasizing their commitment to enabling sustainable copper production which is crucial for the energy transition. He described this agreement as a demonstration of their dedication to providing tailored energy solutions for their clients.
About YPF Luz
YPF Luz is an Argentine leader in power generation, operational since 2013. With an installed capacity of over 3.2 GW, it supports the wholesale and industrial markets through its 15 assets across seven provinces. The company is also in the process of constructing additional renewable energy projects, expanding its role in the transition to sustainable power.
McEwen Copper’s Vision
McEwen Copper is committed to revolutionizing copper mining with the Los Azules project, designed to minimize water usage, reduce carbon emissions, and achieve carbon neutrality by 2038. The promise of renewable electricity to be used during its operations underscores the project’s innovative approach to resources management.
Preliminary Economic Assessment Highlights
Recent estimates indicate that the updated Preliminary Economic Assessment (PEA) from June 2023 forecasts a sustainable operational future with a long mine life, exceptional copper production rates, low costs, and an impressive after-tax internal rate of return (IRR) of 21.2%.
Strategic Partnerships in Development
In its development journey, McEwen Copper has partnered with notable companies such as Stellantis and Nuton, the latter being a subsidiary of Rio Tinto focusing on advanced technology for efficient and sustainable copper extraction techniques.
About McEwen Mining
McEwen Mining has its foot in several locations including Nevada, Canada, Mexico, and Argentina, focusing on gold and silver production. Besides its operational capacity, the company aims to enhance asset productivity, ultimately increasing shareholder value. Founder Rob McEwen holds a personal investment of $225 million in the business, reflecting his commitment to the company’s future success.
Frequently Asked Questions
What is the significance of the renewable energy agreement?
The agreement marks a crucial step towards sustainable operation standards in copper production, aligning with global energy transition efforts.
How does the Los Azules project contribute to sustainability?
The project aims to utilize 100% renewable energy, drastically reduce water consumption, and target carbon neutrality by 2038, setting a new benchmark in the industry.
Who partnered with McEwen Copper for this project?
YPF Luz has partnered with McEwen Copper to provide renewable energy solutions for the Los Azules project, demonstrating strategic cooperation in energy supply.
What future developments are expected from McEwen Mining?
McEwen Mining is expected to continue innovating in sustainable mining practices while expanding its current operations and partnerships for enhanced production efficiency.
What role does YPF Luz play in this initiative?
YPF Luz is responsible for developing the high-voltage transmission line and supplying renewable energy, reinforcing their commitment to sustainable energy solutions.
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