Glencore has finalized an unconditional payment of the first $40 million from a $250 million funding package for Orion Minerals, marking a key step in the development of the Prieska Copper Zinc Mine (PCZM) in South Africa’s Northern Cape. The agreement, announced in February, now clears the way for construction and startup at the Uppers Mine, with first copper and zinc production scheduled for late 2027. The payment follows the completion of offtake and inter-creditor agreements, ensuring future sales of concentrates will secure the remaining funds.
The $40 million Tranche A will fund construction and startup operations at the Uppers Mine, while the $210 million Tranche B is allocated for the Deeps Mine, with an option to draw an additional $50 million early under predefined conditions. Orion expects the first drawdown of Tranche A by the end of October, which will accelerate contract finalization, site mobilization, and construction activities. The funding release will also support the development of the mine’s accommodation village, a critical component for workforce housing.
Over the past year, Orion has made significant progress in engineering and operational readiness at Prieska, moving from planning to execution. Key contracts have been secured, including Torque Africa for drilling and Enprotec for the 20,000-tonne-per-month Uppers concentrator, structured under a build-own-operate-transfer model. These agreements will now advance with the funding in place, ensuring timely project delivery.
The $210 million Tranche B remains subject to full financing for the Deeps and additional third-party support for Glencore’s prepayments. Orion will continue pursuing funding partners while preparing construction crews and equipment for deployment. CEO Tony Lennox described the agreements as a major milestone in Orion’s transition from exploration to production, highlighting the mine’s importance in addressing global copper and zinc demand for energy transition initiatives.
The prepayment facility is structured through bulk deliveries of copper and zinc concentrates from PCZM, reinforcing Orion’s commitment to expanding critical mineral production. This development aligns with broader industry efforts to increase supply amid rising demand for essential metals in renewable energy technologies.
Orion’s progress at Prieska reflects a strategic shift toward production, with the funding package enabling critical infrastructure and operational readiness. The company’s focus on accelerating construction and securing additional financing shows its determination to meet global market needs while advancing its mining operations.
