ORION Minerals has finalised a $250m prepayment facility with a Glencore subsidiary to finance development of its Prieska copper-zinc mine in South Africa’s Northern Cape province.
The binding agreement, linked to future sales of bulk concentrates from the project, will fund construction of the Uppers deposit and provide partial financing for the deeper Deeps section, said Business Day citing an announcement by Orion on Monday. The arrangement was originally disclosed in September.
Orion MD Tony Lennox said the deal was transformative for Orion’s transition into production. First concentrate from the Uppers deposit is anticipated by the end of the first quarter of 2027, following a 13 month development period after the facility closes around March’s end.
“We expect first production from the Uppers 13 months after closing of the prepayment facility,” Lennox said, noting slight delays in finalising documentation and equipment deliveries.
The financing follows last week’s announcement that BHP would establish a joint venture with Orion covering exploration activities across the Northern Cape – the first South African operation joining BHP’s global explorer partnership programme. That arrangement includes $500,000 in immediate funding.
Copper demand is projected to rise 40% by 2040 driven by industrial expansion, data centres and electric vehicle manufacturing, whilst new discoveries remain scarce.
Orion targets annual production exceeding 50,000 tons by decade’s end across its Prieska and Okiep assets, the latter having historically yielded 30,000 to 40,000 tons under previous operators Newmont and Gold Fields.
