Orion Minerals is set to secure a $250 million binding prepayment facility from Glencore to support the development of its Prieska Copper Zinc project in South Africa.
The agreement, executed through Orion subsidiary Prieska Copper Zinc Mine (PCZM), involves the sale of bulk copper and zinc concentrates, facilitating the Uppers development and partially financing the Deeps development at the project.
This marks a significant step forward in Orion’s move toward full operational status.
The prepaid line, first announced in September 2025, consists of two tranches.
Tranche A provides $40 million for construction and commissioning of the Uppers section of the project. Tranche B offers $210 million for the Deeps, with an early withdrawal option of up to $50 million if certain conditions are met.
Glencore’s performance on prepayment is market-related and includes a reduction in tariffs once commercial production begins. The facility allows reimbursement at any time without penalty.
The settlement of the facility will occur through the delivery of copper and zinc concentrates under linked supply agreements.
The agreement provides a first-tier guarantee alongside PCZM’s other secured lenders, with Orion guaranteeing PCZM’s obligations under the facility.
Additionally, several conditions must be met before proceeding, including obtaining approvals from the South African Reserve Bank and other regulatory bodies.
An updated intercreditor agreement is required between Glencore, Triple Flag and the South African Industrial Development Corporation.
In addition, linked purchase agreements for Uppers and Deeps bulk concentrates are to be concluded with Glencore.
It is also necessary to complete the scope of work and expense allocation for superiors.
To activate Tranche B, Glencore must obtain third-party non-recourse financing for its advance payments.
Orion Minerals Managing Director and CEO Tony Lennox said: “This is a landmark deal for Orion. Tranche A will fund the development of the Uppers, while the early withdrawal of Tranche B will allow us to begin work on the Deeps.
“We expect first production from Uppers 13 months after the closure of the Prepayment Facility, which is now expected by the end of March 2026 due to a short delay in the completion of this agreement and the delivery schedule of equipment orders with long lead times. Consequently, the first concentrate is now expected by the end of the first quarter of 2027.”
“Orion to secure $250 funding from Glencore for Prieska project” was originally created and published by Mining Technology, a brand owned by GlobalData.
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