Rob McEwen discusses the unprecedented rally in copper prices driven by supply shortages, geopolitical tensions, and future demand from technologies like AI. He highlights the challenges in developing new copper projects, the industry's consolidation through mergers, and his own Los Azules project’s profitability at current prices. McEwen also shares insights on financing, market outlook, and his strategic vision combining copper with gold and silver assets.
At the Future Minerals Forum 2026 in Riyadh, Saudi Arabia, Kitco Mining's Paul Harris sat down with Rob McEwen, chief owner of McEwen Inc., to discuss the remarkable rise in copper prices and what it means for the mining industry and investors. Copper, currently trading around $6 per pound ($13,000 per ton), has captured global attention due to its critical role in future technologies and energy transition.
Rob McEwen attributes the copper rally to several key factors:
These elements combined have created a unique environment driving copper prices higher.
The atmosphere at the forum was optimistic, with many industry players expecting copper prices to rise even further. Despite the high prices, major mining companies are poised to generate substantial profits. Capital is flowing into exploration, signaling confidence in the sector’s growth potential.
McEwen highlighted ongoing mergers among major copper producers, which are reshaping the industry. He explained that while antitrust regulations can take up to a year and a half to navigate, developing a new greenfield copper project can take 15 years or more. Consequently, companies are opting to merge to quickly gain scale and market dominance rather than wait for new projects to mature.
This trend is expected to continue, with an active mergers and acquisitions (M&A) market. Smaller companies, including intermediates and juniors, are also striving to scale up to remain competitive.
McEwen’s subsidiary, McEwen Copper, is advancing the Los Azules project in Salta, Argentina, which is nearing a production decision. The project’s feasibility study, conducted at a copper price of $4.35 per pound, showed a net present value (NPV) of $2.94 billion. At current prices around $6 per pound, the NPV exceeds $7 billion, more than doubling the project’s value.
The project boasts a gross margin exceeding 71%, approaching the profitability levels seen in tech companies. Sensitivity analysis indicates that a 10% change in copper price can alter the NPV by approximately $1 billion.
While copper prices and project profitability are critical, other factors influence the decision to build new mines:
Construction is targeted to begin in late 2026 or early 2027, with production anticipated by 2030.
Despite the large capital requirements, McEwen is optimistic about securing funding. He is in discussions with experienced builders and financial partners to support the project. The possibility of going public is being considered to raise equity and increase the company’s profile.
McEwen envisions McEwen Inc. evolving into a significant player in the copper market, potentially rivaling major companies like Freeport-McMoRan.
With extensive experience in gold and silver mining, McEwen sees a strategic advantage in combining these assets with copper. He describes gold and silver as "hard money" and copper as "energy," highlighting their complementary roles in a diversified portfolio aligned with future economic and technological trends.
The current copper rally is driven by a confluence of supply constraints, geopolitical factors, and burgeoning demand from new technologies. Industry consolidation and the lengthy timelines for new projects are reshaping the market dynamics. Projects like Los Azules exemplify the potential profitability and challenges of copper development today.
Rob McEwen’s insights underscore a pivotal moment in the copper industry, where strategic financing, mergers, and innovative project development will define the future landscape. His vision of integrating copper with precious metals positions McEwen Inc. to capitalize on the evolving market opportunities.
As the world transitions to a more electrified and technology-driven future, copper’s role as a critical mineral is more important than ever, making this rally truly different from past cycles.
This article is based on an interview conducted at the Future Minerals Forum 2026 in Riyadh, Saudi Arabia, by Kitco Mining’s Paul Harris with Rob McEwen, chief owner of McEwen Inc.
