Orion Minerals has fulfilled the outstanding conditions for approximately €35.6 million in Glencore-backed financing for its Prieska copper-zinc project in South Africa, with initial drawdown expected before the end of October. The funding will support the initial Uppers Mine development, where production is targeted by the end of 2027.
The financing became unconditional after Orion completed the required concentrate offtake and intercreditor agreements. The company has not confirmed that the full amount has been received in cash.
Contractors and Processing Infrastructure
Orion has appointed Torque Africa as drilling contractor and ENPROTEC to supply a concentrator with capacity to process approximately 20,000 tonnes of ore per month.
The Uppers Mine will establish initial copper and zinc production before the larger underground Deeps development. Prieska is a brownfield project that can use existing underground infrastructure and previously developed workings, although rehabilitation and new processing facilities will require further investment.
Glencore Secures Long-Term Offtake Rights
Under the commercial agreements, Glencore will purchase 100% of bulk concentrate from the Uppers Mine for five years and hold rights to purchase all copper and zinc concentrates from the Deeps development for at least 10 years.
The arrangements provide Orion with greater funding certainty and an established marketing channel. The concentrates are not specifically allocated to European smelters, as Glencore can market production internationally.
Deeps Development Requires Further Funding
Orion is pursuing an additional financing tranche of approximately €187 million for the Deeps development. This funding remains conditional on securing third-party financing and completing the wider capital structure, and is not yet committed construction capital.
The next steps for the initial phase include drawing down the funds, mobilising contractors and building the processing facilities ahead of the end-2027 production target.
