By: Creamer media

Orion is reviving the fully permitted Prieska copper/zinc mine (PCZM) in South Africa’s Northern Cape, which last operated in 1991, with a mining resource of 31-million tonnes at 1.2% copper and 3.6% zinc.

The equity will be in Orion’s subsidiary, PCZM HoldCo, in accordance with the loan facility agreement dated February 2023 and the implementation agreement executed on Tuesday, March 31. Following completion of the equity conversion, the IDC will hold 23.8% of PCZM HoldCo, an effective interest of 16.7% in PCZM and retain a shareholder loan of R272.4-million.

“With the IDC conversion agreed, we’ll now focus on completing the remaining conditions precedent to the Glencore financing and offtake agreements,” Orion CEO Tony Lennox stated in a media release to Mining Weekly.

PCZM has a prepayment agreement with a wholly-owned subsidiary of Glencore for a $250-million prepayment facility linked to the sale of bulk copper and zinc concentrates from the Prieska project.

The facility will fund the Uppers development and partially fund the Deeps development at Prieska, highlighted as a significant step in Orion’s transition to a fully operational company.

First concentrate from PCZM is now expected at the end of the first quarter of 2027.

IDC executive: industry planning and project development Rian Coetzee pointed out that the take-up of an equity position in PCZM HoldCo underscored IDC’s support for the development of the project and its alignment with South Africa’s industrialisation and beneficiation objectives.

“IDC’s participation reflects our confidence in the project’s fundamentals, strategic importance, and contribution to regional economic development, including job creation and supply-chain stimulation.

“This equity participation is consistent with IDC’s mandate to support strategically important, commercially sustainable projects that advance industrial development and long-term economic value.

“The equity investment forms part of IDC’s mandate to support inclusive growth and industrial capability,” Coetzee explained.

Also in the Northern Cape is Orion’s Okiep copper project, in which the IDC has a 43.75% shareholding.

Orion Minerals reported on March 19 that it had finalised the settlement of the remaining R14.74-million consideration for the acquisition of a controlling interest in the Okiep copper project. The consideration comprised R2.3-million in cash and R12.44-million in shares.

Orion entered into definitive agreements in 2021 to acquire the mineral rights and associated assets held by Southern African Tantalum Mining, Nababeep Copper Company and Bulletrap Copper through its subsidiary companies New Okiep Mining Company and New Okiep Exploration Company.

Minerals Council South Africa acting chief economist Bongani Motsa this week emphasised the richness of the Northern Cape this week ahead of the upcoming Northern Cape Investment and Jobs Conference 2026, which will take place in Kimberley from April 13 to 15.

Northern Cape Premier Dr Zamani Saul told the collaboration session in Sandton that mining is one of the six critical pillars of the province’s industrialisation and development strategy, along with infrastructure development and transport corridors to support an expanded mining sector.

Saul described the Northern Cape as one of South Africa’s most under-explored and underutilised yet highest potential regions and invited business and investors to reimagine the Northern Cape as a future-facing, globally competitive industrial hub.

“Across the world, industrial advantage is shifting towards regions that offer four things: abundant green energy; proximity to natural resources; a trained skills base; and access to markets through reliable infrastructure," said Saul.

Amid global demand for minerals such as copper and zinc rising, Saul drew attention to the Northern Cape holding globally significant deposits of these minerals, while being well positioned to become a dependable, long-term supplier to global manufacturing value chains.