Orion says Prieska mine is shovel-ready as $250m Glencore funding nears completion

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Orion Minerals says its Prieska copper-zinc project in the Northern Cape is ready to move into execution once outstanding conditions linked to a $250m funding agreement with Glencore are completed.In an investor update on Thursday, Orion Minerals CEO Tony Lennox said the company remains on track to begin producing its first copper concentrate from Prieska in the second quarter of 2027, with the timeline dependent on the completion of financing arrangements.Orion announced a $250m funding agreement with Glencore in February, following earlier discussions between the two companies on funding and offtake arrangements. The agreement involves upfront funding from Glencore linked to the future sale of copper and zinc concentrates from Prieska.Orion Minerals CEO Tony Lennox. Picture: SUPPLIED Lennox said Orion is working through the remaining conditions associated with the funding arrangement.“We are all now in a position where we are shovel-ready. The only thing we are needing is the money,” Lennox said.He said Orion has prepared four key work packages that could begin once funding is available, including site accommodation, the underground concentrator, underground drilling and production activities.Prieska is expected to initially produce a bulk concentrate from the upper portion of the orebody before transitioning into deeper mining areas where Orion plans to produce separate copper and zinc concentrates.Prieska contains about 31-million tonnes of ore containing copper and zinc, with the operation expected to process about 2.4-million tonnes of ore a year as the operation expands.Beyond Prieska, Orion is advancing its nearby Okiep copper project in the Northern Cape, an area with a long history of copper mining. The company said recent drilling results have increased confidence in the project’s potential.Orion is also participating in BHP’s exploration programme in the Northern Cape after being selected as one of the companies involved in the initiative focused on identifying new copper opportunities.As Orion moves closer to production, Lennox said maintaining a competitive cost position will be critical, particularly given the cyclical nature of commodity markets. He said Prieska’s position among lower-cost copper projects globally will help the company remain resilient as a producer.“For us, the most important thing is ensuring that our cost position will be as low as possible,” Lennox said.