Orion Minerals has secured a $250-million (about R4-billion) funding agreement with commodities giant Glencore to advance the development of its copper and zinc project in Northern Cape.
This is an effort to accelerate construction of the mine and position the company for first production in 2027.
Orion Minerals announced it has signed a binding prepayment facility through its subsidiary, Prieska Copper Zinc Mine (PCZM), to support development at the Prieska Copper Zinc Project.
The funding will be used to build the Uppers section of the mine and partly finance development of the Deeps, marking a key step in Orion’s transition towards becoming a producing mining company.
The facility is structured in two parts, including $40-million for construction and start-up of the uppers and $210-million for the deeps, with the potential for an early drawdown of up to $50-million to begin initial works once conditions are met.
Deal to facilitate advancement of development
Tony Lennox, the managing director and chief executive of Orion, expressed that the agreement marked a significant milestone for the company and would facilitate the advancement of development.
“We expect first production from the uppers 13 months after closing of the prepayment facility, which is now expected around the end of March 2026 due to a short delay in finalising this agreement and the delivery timing of long lead time equipment orders.
Consequently, the first concentrate is now expected at the end of quarter one of 2027.
“We are delighted to be partnering with Glencore, along with our other key funding and equity partners, and we look forward to a long and mutually beneficial relationship.
“Our execution team is ready and waiting to deliver the uppers, followed by early works at the deeps,” said Lennox.
Toby Spittle, Glencore’s copper marketing division, expressed support for the project and its role in reviving copper mining activity in the region.
“We are pleased to have reached a binding agreement with PCZM and will work closely with Orion on the outstanding conditions.
“We are excited to be part of the restart of copper mining in South Africa’s Northern Cape and look forward to a long future of working together,” said Spittle.
