Prieska Copper Zinc Project

PCZM plans to open the old Prieska Copper Mine, active between 1971 and 1991, in order to exploit the previously unmined open-pit, old pillars and deep sulphide mineral resource at depth.

The focus of the project is on:

• Exploration and development to mine copper and zinc

• By-products include gold, silver, pyrite and barite

In order to adapt to the current local and global economic challenges, PCZM instituted a number of financial and technical studies to consider the viability of various scenarios for accelerating early cashflow. This resulted in the current plan to start the operation on a smaller scale and ramp-up to the final development scenario. Work has begun and the project remains positive.

Work with the local mine community and proactive up-skilling programmes continue, working towards local provision of many of the required skills.

Targeted sectors

The project focuses on the following sectors: mining and renewable energy.

Investment value

As of end July 2022, R623-million had been spent on the project. The R4.1-billion announced to construct the mine will be in addition to this amount.

Job creation

Initially around 100 jobs are anticipated to be created, scaling up to more than 1 500 employees and contractors during construction, with a steady-state employment estimate of 840. This excludes new jobs created for service provision to the mine and its employees.

Project financed by

Public-private-partnership (PPP); equity investors and offtake related / prepayment funding; BBBEEE-equity partners and investors; service providers.

Project status

The mine concluded a positive Bankable Feasibility Study in May 2020 and is currently in the late financing stage and early construction stage in anticipation of receiving the remainder of the requis ite funding.

• Project feasibility and business case complete

• Government approval and procurement stage

• Financial close and start of construction

• Trial mining and dewatering of the mine has commenced

Partnerships

The PCZM Project falls under the auspices of Orion Minerals Limited which is dual listed on both the Johannesburg Stock Exchange (JSE) and the Australian Stock Exchange (ASX), allowing for equity participation by South Africans. In addition to the BBEEE partnerships, the project has also procured funding from the Industrial Development Corporation of South Africa Ltd (IDC) as well as from TFR&S Canada Ltd and Triple Flag Ltd (together, Triple Flag).

Main project contacts

Orion CEO: Errol Smart

Orion CFO: Peet van Coller

Email: info@orionminerals.com.au

Website: www.orionminerals.com.au

Reasons for investing in the Northern Cape Orion consciously chose to invest in the Northern Cape because of the potential of the province with abundant natural resources and its reliable infrastructural advantages. The Northern Cape offers knowledgeable and experienced service providers. The central location of the project within South Africa with access to all the main ports and transport-distribution hubs is advantageous. ■