Orion Minerals has taken a major step toward reviving its flagship Prieska Copper Zinc Mine in South Africa after signing a non-binding term sheet with Glencore for up to US$250 million in financing and concentrate offtake.
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The agreement, announced on September 17, will see Glencore provide between US$200 million and US$250 million through two tranches. The first, worth US$40 million, is earmarked for construction and startup of the near-surface “Uppers” deposit.
A second tranche of up to US$210 million will support the deeper-level “Deeps” development, with up to US$50 million available for early works.
In exchange, Glencore will secure offtake rights to 100% of copper and zinc concentrates from the Deeps for ten years, and 100% of bulk concentrates from the Uppers for five years, under competitive market terms.
Orion CEO Tony Lennox described the deal as a “watershed moment” that positions the company to transition from developer to producer. “Tranche A enables the Company to move swiftly into first production and first cash flow from mining of the Uppers,” he said, adding that early drawdown of Tranche B would ensure smooth progression to full-scale operations at the Deeps.
Glencore’s Toby Spittle, from its copper marketing division, said the company had been following Prieska’s progress closely. “We look forward to playing our part in financing the mine’s development and subsequent marketing of the concentrates,” he said.
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The Industrial Development Corporation of South Africa (IDC), an early backer of Prieska, also welcomed the move. Acting divisional executive Rian Coetzee said the project would deliver significant job creation in the Northern Cape and contribute to regional socio-economic growth.
Located in South Africa’s mineral-rich Northern Cape, Prieska ranks among the world’s top 30 volcanogenic massive sulphide deposits, with historical output exceeding 430,000 tonnes of copper and one million tonnes of zinc.
Orion is targeting first production from the Uppers in late 2026 or early 2027, with plans to ramp up to more than 30,000 tonnes of copper and 65,000 tonnes of zinc annually when both Uppers and Deeps are in steady-state production