Orion Minerals has cleared the final conditions on the first 40 million US dollars, about 658 million rand, of Glencore funding for its Prieska Copper Zinc Mine in the Northern Cape, and development of the shallower Uppers mine can now start. The tranche became unconditional after the final concentrate offtake and intercreditor agreements were executed, Orion said on Monday, with the first drawdown expected by the end of October 2026.
In exchange, Glencore takes 100 percent of bulk concentrates from the Uppers mine for five years and 100 percent of copper and zinc concentrates from the deeper Deeps mine for at least ten years. The funding is a prepayment facility: a second tranche of 210 million dollars for the Deeps remains conditional on that section being fully funded and on Glencore securing third party funding, although up to 50 million dollars may be drawn early for Deeps early works if conditions are met. Security ranks equally with Triple Flag Precious Metals.
Prieska was operated by Anglovaal from 1971 until it closed in 1991, and Orion acquired it in 2017. A March 2025 feasibility study put the capital required for full production at 7.59 billion rand, for output of 22,000 tonnes a year of copper and 65,000 tonnes of zinc. Orion is targeting first copper and zinc production from the Uppers by late 2027, nearly a decade after it first announced the restart. Torque Africa has been appointed as drilling contractor and Enprotec will deliver the 20,000 tonne per month Uppers concentrator under a build, own, operate, transfer arrangement.
The remaining question is the Deeps. The 40 million dollars funds a real start, but the larger underground mine below it still needs its 210 million dollar tranche and full funding before Prieska reaches the feasibility study’s production profile.