Kamoa-Kakula Solar-Battery Facility Reaches Commercial Operation, Supplies 30 MW Baseload Power

McEwen Copper has closed a US$240 million senior secured four-year term loan to advance engineering and early works at the Los Azules copper project in San Juan, Argentina, providing additional funding as the project moves toward a final investment decision. The financing includes US$112 million from Sprott Natural Resource Investment Partners, US$85 million from Rob McEwen and US$43 million from other lenders. McEwen Inc., which owns 46.3% of McEwen Copper, said the proceeds will also be available for general corporate purposes. McEwen Copper expects a final investment decision and full project financing in mid-2027, while commercial copper cathode production is targeted for 2030, subject to securing project financing and customary approvals. The newly closed loan carries an interest rate of 12% per year, payable monthly, and matures after four years. The company is simultaneously progressing broader project debt financing for Los Azules, with Société Générale serving as sole financial adviser, while preparations for a potential McEwen Copper initial public offering are continuing. Development work at Los Azules is also advancing, with the 2025–2026 field campaign completing more than 5,600 metres of drilling. McEwen said engineering for the FID is ahead of its internal plan, while engineering packages covering the solvent extraction/electrowinning circuit, sulphuric acid facilities and crushing have been awarded to Metso. The mining fleet tender is in final evaluation, and selection of the engineering, procurement and construction management contractor is expected in Q4 2026. Closing the US$240 million facility provides Los Azules with additional capital to continue engineering and early works while McEwen Copper prepares for the substantially larger financing required for full project development. The financing does not constitute a final investment decision, and the 2030 production target remains conditional on project financing and approvals, but it represents a concrete step toward the company’s planned mid-2027 FID and reduces near-term funding uncertainty during the current development phase.

Small and medium-sized mining companies in Zambia are continuing to struggle with access to sulphuric acid, with some operators warning that they could suspend operations if shortages persist, according to the United Mineworkers Union of Zambia (UMUZ). UMUZ President Yosam Nyirongo said miners have been unable to secure consistent supplies of the reagent, which is an important input in copper leaching and processing, placing additional pressure on production and operating costs. Importantly, Nyirongo said no mining companies have officially shut down as a result of the shortage so far, but some members have indicated that continued supply constraints could eventually force closures. Nyirongo attributed part of the pressure on domestic availability to continued sulphuric acid exports to the Democratic Republic of Congo, and called on the government to prioritize Zambia's domestic requirements before allowing exports. He also raised concerns about intermediaries purchasing acid and reselling it at higher prices, arguing that this was contributing to higher operating costs for smaller mining companies. The union had already raised similar concerns in July, when it called for restrictions on acid exports until domestic demand could be adequately supplied. The latest warning comes amid broader indications that the shortage is already affecting Zambia's smaller copper producers. Recent reporting citing government officials identified limited availability of sulphuric acid as a major factor behind declining copper production among small-scale miners, alongside regulatory-compliance issues. Sulphuric acid is particularly important for operations using leaching-based processing routes, making reliable supply critical for maintaining output at such facilities. The latest warning does not indicate an immediate loss of Zambian copper supply, since no mine closures have yet been confirmed. However, persistent sulphuric acid shortages represent a potential downside risk for smaller leaching operations if producers are unable to obtain sufficient volumes at economically viable prices. Continued competition between domestic consumers and export demand from the DRC could therefore remain an important factor to watch for Zambia's small- and medium-scale copper production.

Southern Copper reported second-quarter net sales of US$4.289 billion, up 40.6% year on year to a record, with first-half sales up 38.4% to US$8.54 billion. Second-quarter net income was US$1.670 billion, up 71.6%, and first-half income rose 69.2%. Copper output was 230,662 tonnes in the quarter, down 3.5% sequentially, and 461,206 tonnes in the half, down 3.8% year on year as Peruvian mines fell about 12%. The company lifted its 2026 copper guidance to 917,000 tonnes from 910,000. The LME copper average was US$6.04 per pound, up 30%.