By: Ecofin agency

While awaiting the financing required to launch construction works, Orion Minerals continues preliminary development activities at its Prieska copper-zinc project in South Africa.

The ASX-listed mining company announced on Friday, May 22, that it had launched a capital raising operation worth 15.4 million Australian dollars ($10.9 million). Once completed, the fundraising will mainly finance ongoing work at Orion’s South African projects, including the future Prieska copper-zinc mine.

More specifically, the company structured the operation as a share placement supported notably by a base of South African investors.

Orion expects to complete the transaction around May 28. The company said the proceeds would strengthen its cash position and unlock funds needed to continue preliminary development works at Prieska while it finalises financing for mine construction.

The company will also allocate part of the proceeds to the Okiep project, a less advanced asset currently undergoing exploration work aimed at expanding mineral resources.

“This capital raising is critical for Orion because it marks the beginning of our transition into an operating mining company during the second half of 2026 […]. The amount raised places Orion in an excellent position to commence development of the Prieska mine once the Glencore financing transaction is finalised,” Chief Executive Tony Lennox said.

According to Orion’s mine plan, Prieska could produce 22,000 tonnes of copper and 65,000 tonnes of zinc annually over an estimated mine life of 13.2 years.

The company estimated the capital expenditure required to build the mine at 578 million Australian dollars ($412 million).

To cover that investment, Orion plans to rely partly on an anticipated $250 million financing agreement from Glencore in the form of a prepayment facility backed by future Prieska production sales. Once launched, construction works should last 13 months before the project enters production.

Against a broadly supportive backdrop for base metals markets, the successful development of Prieska could prove significant for Orion Minerals and its ambition to contribute to global supply chains already facing tight copper market conditions.

The project also carries strategic importance for South Africa, which could strengthen a mining production base that remains modest compared with major African producers such as the Democratic Republic of the Congo.

According to the United States Geological Survey, South Africa produced around 49,000 tonnes of copper concentrate in 2022, in addition to 224,400 tonnes of zinc.