Orion Glencore copper-zinc deal backs South Africa’s Prieska revival

Orion Glencore

The Orion Glencore copper-zinc deal will inject up to $250mn into South Africa’s Prieska mine redevelopment. Orion Minerals signed a non-binding term sheet with Glencore covering staged financing and long-term concentrate offtake, making the Orion Glencore copper-zinc deal a cornerstone funding package for the project. As a result, the Orion Glencore copper-zinc deal positions Prieska as a significant future supplier of copper and zinc for the energy transition.

Orion Glencore copper-zinc deal structures phased financing for Uppers and Deeps

The agreement splits funding between Prieska’s near-surface “Uppers” orebody and the deeper “Deeps” deposit. Orion expects $40mn to flow first into the Uppers to fast-track initial mine development and near-term output. Meanwhile, a second tranche of $160mn–210mn will fund full build-out of the Deeps, subject to due diligence and final documentation.

Glencore also offers an early drawdown facility of up to $50mn for Deeps pre-works. This structure allows Orion to de-risk critical engineering and infrastructure before committing to the full capital envelope. Therefore, the Orion Glencore copper-zinc deal blends development capital with commercial offtake in a way that lowers financing risk.

Under the term sheet, Glencore will take 100pc of bulk concentrates from the Uppers for five years. It will also off-take 100pc of copper and zinc concentrates from the Deeps for 10 years. Orion retains flexibility on delivery points and advance sales, giving it room to optimise logistics and pricing across global markets. First production is targeted for late 2026.

Prieska and Okiep strengthen South Africa’s energy transition metals pipeline

Prieska carries a sizeable resource base to underpin the Orion Glencore copper-zinc deal. The project hosts 31mn t grading 1.2pc copper and 3.6pc zinc. A definitive feasibility study released in March outlined a two-phase development plan. It targets a combined 13.2-year mine life with steady-state output of 30,000 t/yr copper and 65,000 t/yr zinc.

These volumes are material in the context of tightening global copper and zinc supply. Copper is central to electrification, grid build-out and EV infrastructure. Zinc remains key for galvanised steel and infrastructure corrosion protection. Therefore, Prieska aligns directly with energy transition metal demand.

At the same time, Orion continues to advance its Okiep copper project in the same region. Together, Prieska and Okiep could re-establish the Northern Cape as a meaningful copper district. The Orion Glencore copper-zinc deal sends a positive signal for South African base metals investment, even as regulatory and power challenges persist.

The Metalnomist Commentary

Glencore’s willingness to provide both capital and long-dated offtake confirms Prieska’s strategic appeal in a tightening copper-zinc market. For Orion, the deal reduces financing uncertainty and validates its district-scale ambitions in the Northern Cape. Market participants should now watch execution discipline, permitting progress and how quickly Prieska can move from term sheet to binding financing and construction.