Orion Minerals secures Glencore offtake funding for Prieska mine development

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Orion secures mine funding

Highlights

Glencore agreed to fund Orion Minerals' Prieska project in exchange for 100% of Uppers Mine bulk concentrates and Deeps Mine copper and zinc offtake.
A March 2025 feasibility study estimates Prieska needs R7.59 billion to reach 22,000 tonnes copper and 65,000 tonnes zinc capacity, with $210 million still required for Deeps.
Tembo Capital exited its Orion shareholding in June, selling to Thomas Borman and a South African institution, signaling further ownership changes.

Funding structure and mine rollout

As reported by Moneyweb, Glencore is providing the funding through an offtake agreement under which Orion will supply 100% of bulk concentrates from the Uppers Mine, as well as 100% of copper and zinc concentrates from the deeper Deeps Mine. The Deeps section has not yet been fully funded, making the current package a first step toward the broader redevelopment of the asset.

Orion says the agreement marks a key milestone as it moves from exploration into development and production. In a Sens statement, chief executive Tony Lennox says the financing and offtake agreements with Glencore represent a major step in advancing the flagship project.

A feasibility study published in March 2025 shows Prieska requires total capital of R7.59 billion to reach full production capacity of 22,000 tonnes of copper a year and 65,000 tonnes of zinc. Orion still requires a further $210 million, or R3.5 billion, to develop the Deeps, subject to the project being fully funded and Glencore securing additional third-party financing.

Northern Cape mining revival and ownership changes

Prieska was previously operated by Anglovaal from 1971 until it closed in 1991. Orion acquired the mine in 2017 and has since spent nine years completing feasibility work and arranging financing to restart copper and zinc production at the site.

The company is targeting first production nearly a decade after first announcing the project, underlining both the scale of the redevelopment and the long lead times attached to mine financing in South Africa's base metals sector. The restart could strengthen copper and zinc output in the Northern Cape if Orion completes the remaining funding needed for the deeper section of the operation.

Orion has also undergone several shareholder changes over the years. Earlier this month, private equity firm Tembo Capital, one of the company's early backers, sold its stake to longstanding shareholder Thomas Borman and an unnamed South African institution.

Our earlier article on India’s disinvestment programme explained that the government has raised the bulk of its proceeds since FY2016 through market-linked routes such as ETFs, public issues, and buybacks, while strategic sales have played a much smaller role. It also highlighted why the planned IDBI Bank stake sale stands out as an unusually large strategic transaction that could materially lift the year’s overall disinvestment outcome versus target.

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