LONDON, May 9, 2026, 00:33 BST
Rio Tinto is taking a fresh look at McEwen Copper’s Los Azules project in Argentina, weighing a possible increase to its current 17.2% stake in the giant undeveloped copper asset, according to two industry sources. A spokesperson for Rio wouldn’t comment. Over at McEwen Copper, managing director Michael Meding called the discussions with Nuton—Rio’s copper-technology business—“fruitful conversations.” Reuters
Timing is key here. With merger discussions between Rio and Glencore having broken down, Rio’s been making a push to boost its copper profile. Competition for long-life copper assets is fierce, fueled by rising demand from data centers, power grids, and clean energy projects. BHP, which is bigger than Rio, has shifted deeper into copper as well—iron ore just got bumped from its top earnings slot by the metal.
For Rio, Los Azules offers a lighter-touch option: it gets a bigger slice of the asset, more room to deploy Nuton, but skirts a full buyout, at least for now. The 2025 feasibility study pegged after-tax net present value at $2.9 billion. That figure, Michael Meding said, hands McEwen “a clear, actionable development plan.” McEwen Mining
The project relies on heap leaching and solvent extraction-electrowinning—a process that pulls copper from ore with solution, then turns it into copper cathode, those refined metal sheets manufacturers want. According to McEwen, tailings dams aren’t part of the plan. Fresh water use comes in 74% below conventional milling. Sectoral permits, including those tied to water and infrastructure, remain in progress.
Funding won’t come easy. McEwen Copper is chasing around $4 billion for Los Azules, and a potential IPO—about $300 million—has been floated for late 2026. The board is expected to weigh in by the end of that year, aiming to kick off construction in early 2027.
Rio’s latest step lines up with its ongoing drive into copper. First-quarter consolidated copper output climbed 9% to 229,000 tonnes, boosted by Mongolia’s Oyu Tolgoi mine. Chief Executive Simon Trott said the site is “ramp[ing] up as planned.” Rio Tinto
Short-term operating risks are also in play. Just last month, Rio flagged the potential for Middle East tensions to disrupt supply chains in the second half. Baden Moore, who leads resources and energy research at CLSA Australia, singled out “jet fuel and diesel shortages” as a major operational threat. Reuters
Guinea’s project execution is facing questions once again. Workers at the Baowu-led Simandou blocks 1 and 2 ended their strike, clearing the way for mining to restart there on Thursday. Simfer, a Rio Tinto-led joint venture, remains in charge at blocks 3 and 4—the other half of the iron ore project.
It’s not just about price or drilling risk. Rio continues to be under scrutiny for water management and local relations, with Robe River Kuruma Traditional Owners alleging sacred Western Australian waterholes have run dry due to the company’s water use. Jesuits in Britain remain vocal about environmental impacts tied to Madagascar and Guinea operations. Expanding its Los Azules exposure would only heighten questions around permitting, water, and buy-in from local communities in Argentina.
Rio closed out Friday in London at 7,704 pence, up 0.26%. Earlier, the shares reached 7,769 pence intraday. The trading range for the past year runs from 4,110 to 7,834 pence, putting the stock just shy of its top mark as investors continue to size up the company’s push into copper alongside concerns over its capital needs and execution risks.
No deal has emerged so far. Los Azules stands as Rio’s experiment—can it boost copper output without shelling out for an outright mining acquisition?
