Copper has a strong role in the green energy story, and a recent move from a major automaker highlights its position.
On February 27, McEwen Copper, a subsidiary of McEwen Mining (TSX:MUX,NYSE:MUX), received a US$155 million investment from Stellantis (NYSE:STLA), the car manufacturer behind brands such as Chrysler, Fiat, Jeep and Maserati.
Rob McEwen, chairman and chief owner of McEwen Mining, said the situation is unique in the copper sector.
“This is the first occasion where an original equipment manufacturer, a carmaker, has invested in a copper situation directly,” he said. “They’ve done it in lithium and nickel, but this is the first time they’ve come into copper.”
McEwen Copper’s main asset is the Argentina-based Los Azules porphyry copper project, which the company describes as one of the world’s largest undeveloped high-grade open-pit copper properties.
Concurrent to the Stellantis investment, McEwen Copper announced an additional US$30 million investment from Nuton, which is a venture that Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) created to help grow its copper business.
“I find it quite interesting that you have the number two mining company in the world, represented by Rio Tinto and their Nuton process, (as well as) the number four auto manufacturer in the world, on the shareholder list representing a block bigger than 28 percent of our shareholdings,” McEwen told the Investing News Network.
Speaking about what these funds will be used for, Michael Meding, vice president and general manager at McEwen Copper, said much of it will go toward drilling — 18,000 meters have been drilled so far this season, but there will be much more to come. The company is also completing an environmental impact assessment and aims to finish a feasibility study by the end of 2024.
Watch the interview above for more from McEwen and Meding on the copper market.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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