Orion Secures $40 Million from Glencore to Advance South Africa’s Prieska Copper-Zinc Mine

Orion Minerals has secured an unconditional US$40 million financing facility from global commodities group Glencore, marking a significant milestone in the redevelopment of the Prieska Copper-Zinc Mine in South Africa’s Northern Cape province. The funding represents a major step towards restarting production at the historic mining operation, with Orion targeting first production from the Uppers Mine by the end of 2027. The agreement strengthens the financial foundations of the project and supports Orion’s transition from a mineral exploration company into an operational copper and zinc producer.

The US$40 million funding package, structured as a Tranche A facility, will finance the construction, commissioning and initial operational requirements of the Uppers Mine. Orion expects to draw down the funds by the end of October, enabling the company to accelerate development activities, mobilise contractors and finalise critical construction and operational agreements. The financing provides greater certainty for the project's initial development phase, allowing Orion to move forward with essential infrastructure and mine preparation activities while maintaining its focus on capital efficiency, operational safety and cost management.

Alongside the initial financing, Orion and Glencore are progressing plans for a separate US$210 million Tranche B facility intended to support the development of the deeper Deeps Mine. Unlike the Uppers Mine financing, this larger facility remains conditional on securing additional funding arrangements and meeting the relevant financing requirements. The Deeps Mine represents a more substantial underground development opportunity, with the potential to extend the scale and operational life of the Prieska project. Orion is therefore continuing discussions with prospective financing partners to establish a comprehensive funding structure capable of supporting the mine's longer-term development.

A central component of the agreement is Glencore's commitment to purchase the copper and zinc concentrates produced at Prieska. Under the offtake arrangements, Glencore will acquire 100% of the bulk concentrates produced from the Uppers Mine for a five-year period, subject to the mine's total production. In addition, Glencore has agreed to purchase all copper and zinc concentrates from the proposed Deeps Mine for a minimum of ten years, provided that the development proceeds. These long-term purchasing arrangements establish a defined commercial outlet for Prieska's mineral production and could strengthen the project's bankability by providing greater visibility over future concentrate sales.

Orion has also made important progress in its technical and construction preparations by appointing specialist contractors to deliver key components of the mining operation. Torque Africa has been selected to undertake drilling activities, including geotechnical investigations that will provide essential information on underground rock conditions, excavation stability and mine design requirements. The findings will support the finalisation of engineering plans and help optimise mining methods, infrastructure positioning and safety measures before full-scale underground development begins.

Meanwhile, ENPROTEC has been selected to deliver a mineral processing concentrator with a planned capacity of 20,000 tonnes per month. The facility will be developed under a build-own-operate-transfer arrangement, a contractual model in which a specialist service provider constructs, owns and operates the processing infrastructure for an agreed period before transferring ownership under the contractual terms. This approach can reduce the mine developer's immediate capital expenditure requirements while drawing on the contractor's technical expertise in mineral processing, plant management and operational performance. The concentrator will form a critical part of Prieska's production infrastructure, enabling extracted copper-zinc ore to be processed into marketable concentrates.

With the initial financing secured, Orion is preparing to accelerate on-site development through the mobilisation of contractors, execution of major project agreements and construction of an accommodation village to support the growing workforce. The accommodation infrastructure will provide essential facilities for personnel involved in mine construction and subsequent operations, particularly given the logistical requirements of developing a mining project in the Northern Cape. These preparatory activities are expected to support the transition towards underground development, processing plant construction and eventual production commissioning.

Tony Lennox, Managing Director and Chief Executive Officer of Orion Minerals, described the financing milestone as a major advancement in the company's transformation from mineral explorer to mine developer and producer. He emphasised the importance of maintaining disciplined project execution, strong safety standards, effective cost control and operational readiness as development accelerates. His comments reflect the company's intention to establish a sustainable mining operation supported by robust engineering, responsible resource management and structured implementation.

Glencore has also reaffirmed its support for the redevelopment of Prieska. Toby Spittle, representing the global commodities group, expressed confidence in the initiative to bring the mine back into production and highlighted the importance of continuing Glencore's commercial relationship with Orion through the marketing and purchasing of copper and zinc concentrates. The agreement demonstrates the strategic value of collaboration between mining developers and established commodity trading companies, particularly where projects require significant upfront capital, technical expertise and access to international mineral markets.

The redevelopment of the Prieska Copper-Zinc Mine comes at a time when copper and zinc remain important industrial commodities. Copper is widely used in electrical infrastructure, renewable energy technologies, transmission networks and electrification systems, while zinc plays a critical role in galvanising steel and protecting industrial infrastructure against corrosion. The development of additional production capacity in South Africa could contribute to diversified mineral supply chains, particularly as industrial investment and global infrastructure requirements continue to influence demand for base metals.

From a broader economic perspective, the successful development of Prieska could strengthen South Africa's copper and zinc mining industry, encourage investment in the Northern Cape and generate opportunities for local employment, mining services, infrastructure development and regional procurement. The involvement of Glencore may also enhance investor confidence by demonstrating commercial support for the project's planned production. However, the full economic benefits will depend on Orion's ability to deliver the Uppers Mine on schedule, manage construction and operating costs, secure financing for the Deeps Mine and maintain commercially viable production levels. If these requirements are met, Prieska could become an important contributor to South Africa's base metals sector while reinforcing the country's participation in international mineral supply chains.

Mini-Glossary

• Tranche A and Tranche B: Separate portions of a financing package, often released under different conditions or for different project stages.
• Offtake Agreement: A commercial contract under which a buyer agrees to purchase future production from a mining operation.
• Concentrator: A mineral processing facility that separates valuable minerals from mined ore to produce higher-grade material for sale or further refining.
• Geotechnical Investigations: Technical assessments of rock and ground conditions used to design safe and stable mining infrastructure.
• Build-Own-Operate-Transfer (BOOT): A project delivery arrangement in which a contractor builds, owns and operates infrastructure before transferring it according to agreed contractual conditions.
• Commissioning: The process of testing and preparing newly constructed equipment and facilities for commercial operation.
• Bankability: The ability of a project to attract financing based on its commercial, technical and financial viability.
• Capital Expenditure: Money invested in acquiring, constructing or upgrading long-term assets such as mines, processing plants and infrastructure.