Orion Minerals secures $40m Glencore financing for Prieska mine development

Orion Minerals has secured $40 million in Tranche A financing from Glencore for its flagship Prieska Copper Zinc Mine in South Africa's Northern Cape, after the funding became unconditional following the execution of final concentrate offtake and intercreditor agreements.

The finalisation clears the way for the commencement of development activities at the Uppers Mine, with the first drawdown expected by the end of October. 

First production from the Uppers Mine is targeted by the end of 2027.

Orion has selected key contractors, including Torque Africa for drilling and ENPROTEC to deliver the 20,000 tonnes per month Uppers Concentrator under a Build-Own-Operate-Transfer arrangement. 

The funding will also enable the execution of these contracts and the commencement of construction of an accommodation village.

"We are delighted to have concluded the financing and offtake agreements with Glencore, marking a major milestone for Orion and a pivotal moment in our transition from explorer to developer and producer," said Orion managing director and chief executive Tony Lennox.

The $210 million Tranche B financing, intended for the construction of the Deeps mine, remains conditional on the Deeps being fully funded and Glencore securing additional third-party funding. 

Orion said it will continue discussions with funding partners to secure the remaining project financing.

Under the offtake agreements, Glencore will purchase 100% of bulk concentrates from the Uppers for five years, and 100% of copper and zinc concentrates from the Deeps for a minimum of 10 years.

Mathew Nyaungwa, Editor-In-Chief, Rough & Polished