Orion Minerals is advancing eco-friendly copper production and clean refining at its Northern Cape base metals mines. The company’s fully permitted Prieska mine will start producing copper and zinc within 12 to 18 months of securing final funding, estimated between R3 billion and R4 billion.
“First, we proved the ore. Next, we completed the bankable studies. Now, we focus on building mines and producing saleable concentrates,” said Orion CEO Errol Smart during a South Africa-Australia webinar covered by Mining Weekly.
Orion is leaning away from traditional smelting, exploring metal vapor refining and hydrometallurgical leaching instead. “Smelting is energy-intensive and environmentally challenging, but vapor refining or leach plants are viable green options,” Smart added.
The company is in advanced discussions with renewable energy producers. One offers 90% certified renewable energy at a cost 20% lower than Eskom. “We’ll be producing certified green copper,” Smart emphasized.
Power utility Eskom is set to provide 15 MW of electricity to the Prieska mine. Trial mining, involving daily drilling and blasting, has already yielded 30,000 tons of surface ore. The existing shaft, descending to 1,100 meters, supports efficient, large-scale mining.
Orion has been conducting bankable studies since 2019, with updated versions nearing completion. The Prieska mine’s chambers blasted in the 1970s, have remained stable, requiring no additional support. This stability allows for the use of large machinery, achieving economies of scale in mining operations.
The company has implemented flood control measures to prevent unplanned flooding. Pumps are in place to manage the nine billion cubic meters of water in the mine. A water retention dam will be completed soon, and a reverse osmosis plant will be added next year.
Besides Prieska, Orion is advancing the Okiep copper project, historically known for its high-grade copper. Drilling at Okiep has yielded some of the highest-grade intersections worldwide, including 50 meters at 5% copper.
Okiep is awaiting a water right and the engineering design sign-off for its tailings facility. Orion has consolidated the most prospective brownfields projects and greenfields areas over nine years, finalizing optimized feasibility studies this year.
The Johannesburg and Sydney-listed Orion is on track to commence production at Prieska by the end of next year, with Okiep potentially following in 2026. “Few projects globally can come into production within 12 to 18 months and have significant growth potential,” Smart highlighted.
Prieska, a large brownfields project, benefits from existing infrastructure, accelerating its development. The historic mine processed ore successfully, producing high-quality concentrate. The orebody dips to the southwest at 950 meters, where previous mining operations ceased.
Orion’s projects are gaining momentum, with the Northern Cape district producing an average grade of 1.9% copper historically. The district has 42 known mines, over three-quarters on Orion properties, with 1,700 outcropping mafic orebodies showing copper potential.
Orion has managed a smooth transition between exploration, construction, and operational teams. The mining team has taken over site operations, ensuring a seamless handover. The company is also committed to local procurement, employing host community members, and encouraging suppliers to do the same.
The financing requirement for Prieska is between A$250 million to A$300 million. With Triple Flag financing secured and discussions with debt financiers and offtake-related financiers underway, Orion is well-positioned to meet its funding needs.
Orion Minerals is poised to lead in green copper production, leveraging renewable energy and innovative refining techniques. The company’s commitment to eco-friendly practices and community involvement sets a new standard in the mining industry.
Renewable energy is on the cards for Orion Minerals. “We’re in advanced discussions with a few renewable energy power producers, and one is offering 90% certified renewable energy at a cost 20% lower than Eskom’s supply cost,” said Smart. This move is expected to significantly reduce the carbon footprint of Orion’s mining operations, making it a pioneer in green mining practices.
Power utility Eskom is scheduled to turn on the mine’s 15 MW of electricity input next Wednesday. This development is crucial as it ensures a steady and reliable power supply, which is vital for the continuous operation of the mine. Trial mining has been underway for some time, with drilling and blasting taking place daily, and about 30,000 tons of ore is already on the surface. The existing shaft, which descends to 1,100 meters, has multiple underground roadways that reach down to the deepest ore at 1,250 meters.
Orion has been conducting bankable studies since 2019 and is putting the finishing touches to updated versions. The stability of the mine’s chambers blasted in the 1970s, has been a significant advantage. No additional meshing, lacing, or rock anchors are required, which simplifies the mining process. “This ground is standing fantastically well and what we’ve proven is that in the area where we’re going to mine, we can put in big machines, we can get economies of scale, and we can get the mining happening,” Smart said.
Flood control measures have been implemented to handle events of nature, such as the one-in-100-year rainfall event. Pumps are already in place to manage the nine billion cubic meters of water in the mine. The construction of a water retention dam will be completed in the next few months, and a reverse osmosis plant is scheduled to be in place next year as an additional water control measure.
Besides Prieska, Orion is also advancing the Okiep copper project. Historically known for its high-grade copper, Okiep has produced nearly two million tons of copper under previous Newmont and AngloVaal ownership. Recent drilling at Okiep has yielded some of the highest-grade intersections worldwide, including a 50-meter section with 5% copper.
Okiep is awaiting a water right and sign-off on the engineering design of the tailings facility. “Over the last nine years, Orion has done a consolidation of the most prospective brownfields projects and many of the best greenfields areas. We’ve put that together over here, and those are the projects moving forward,” Smart noted.
The company has spent this year finalizing optimized feasibility studies, while 160 people are active on-site at Prieska. Having plants in place and production commencing at the end of next year is envisaged. “There are very few opportunities in the world where there are mines that are fully permitted, they can come into production in 12 to 18 months, and they’ve got a big growth profile in front of them, and that’s where we are,” Smart highlighted.
The Prieska mine is a brownfields project that benefits from existing infrastructure. The historic mine processed ore successfully, producing high-quality concentrate. The orebody dips to the south-west at 950 meters, where previous mining operations ceased. This project’s fast-tracked development is supported by its rich history and existing facilities.
Orion’s commitment to local procurement is evident. The company employs host community members and encourages suppliers to establish local depots and employ local staff. “We’ve been working with our host community to build that procurement arrangement. It is complicated, but some of our best suppliers are from the local host community,” Smart said.
The financing requirement for Prieska is between A$250 million to A$300 million. With Triple Flag financing secured and discussions with debt financiers and offtake-related financiers underway, Orion is well-positioned to meet its funding needs. “First production is 12 to 18 months from financing. Financing will partly depend on bank approvals,” Smart explained.
Orion Minerals is ready to lead in green copper production, leveraging renewable energy and innovative refining techniques. The company’s commitment to eco-friendly practices and community involvement sets a new standard in the mining industry. Orion’s projects in the Northern Cape are gaining strong momentum, promising a bright future for sustainable mining.
Source: Mining Weekly
