Mining exploration group Orion Minerals is upbeat about the prospects for its SA mine development projects, which the company hopes will allow it to start selling copper by next year.
In a trading update on Tuesday, Orion published feasibility studies for its Prieska Copper Zinc Mine (PCZM), the group’s flagship project and the first mine it plans to develop in SA, and its Flat Mines operation, the first mine to be developed at its Okiep Copper Project.
Orion CEO Tony Lennox said the studies delivered favourable outcomes, demonstrating robust financial metrics.
This brings the company closer to its ambition of transitioning from a pure exploration company to a developer and operating mining company.
By bringing PCZM and Okiep to first production in the coming years, Orion expects to sell its first copper in late 2026 and aims to grow production to more than 50,000 tonnes a year by the end of the decade.
PCZM is a key part of the group’s portfolio, with a post-tax net present value estimated at A$568m (R7.1bn). The asset is expected to produce 213,055 tonnes of copper and 610,630 tonnes of zinc over its lifespan.
The group also sees significant potential in Okiep, which it hopes to restore to its former glory through further drilling and feasibility work this year.
In previous decades, Okiep consistently produced 30,000-40,000 tonnes of copper a year under the ownership of Newmont and Gold Fields.
“The exploration upside of the region, in addition to the opportunity to increase resources through further resource definition drilling, is significant,” said Lennox, adding that “we envisage developing multiple mines at Okiep over time”.
Amid the transition from explorer to operator, Orion has announced key leadership changes in recent months, including the appointment of a new CEO in early April.
As the group’s new CEO and MD, Lennox said his focus was on transitioning the company into a base metal producer in the near term.
“My first weeks have been centred on engaging with a range of key stakeholders while focusing on advancing our development plans for the upper level of PCZM,” said Lennox.
“Together with our chair, Denis Waddell, we are working on a range of project financing options, which include debt, equity and offtake related financing,” he said.
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