INVESTORS are still waiting for Glencore’s $250m (R4.5bn) to Orion Minerals to clear, with the miner saying several hurdles remain before funds can flow into South Africa.
The financing, announced five months ago, is a metals offtake agreement and is central to restarting Orion’s historic Prieska Copper-Zinc Mine in the Northern Cape. Orion insists the project itself is ready, with CEO Tony Lennox saying on Thursday the company was “shovel-ready” and simply awaiting the money, News24 reports.
Orion says first copper and zinc concentrate could be produced within 13 months of receiving funds, targeting output in the second quarter of 2027. Under the deal, Glencore will provide $250m in prepayments to help develop Prieska in exchange for marketing rights to its concentrate.
Lennox attributed the delay to the complexity of a transaction of this scale rather than any change in the project’s status. Outstanding steps include South African Reserve Bank approval for the capital inflow, conditions precedent relating to security arrangements between Glencore and fellow creditor Triple Flag, and finalising prepayment terms acceptable to both parties. He said numerous law firms were assisting with the process, given the governance required for transactions of this size.
Despite the funding delay, Orion says construction-ready work is complete, with four key contracts prepared for award.
Prieska, Orion’s flagship asset, will initially mine near-surface ore for four years before transitioning to a 12-year operation. Reserves stand at 31 million tonnes grading 1.2% copper and 3.6% zinc, with copper expected to generate roughly two-thirds of revenue.
Beyond Prieska, Orion is advancing its Okiep Copper Project and exploration work under BHP’s Explore programme.
