Orion Minerals and Glencore Sign Term Sheet for Prieska Copper-Zinc Project Funding

Orion Minerals Secures Up to A$250m Funding Agreement with Glencore

Australian mining firm Orion Minerals has announced a pivotal non-binding term sheet agreement with Glencore, a major global commodities trader. The deal, signed via Orion’s subsidiary Prieska Copper Zinc Mine (PCZM), outlines financing of up to A$250 million and a long-term offtake agreement for the Prieska Project in South Africa.

The funding is split into two tranches. Tranche A, valued at A$40 million, will fund the construction and startup of the Uppers section at Prieska. Tranche B, ranging from A$160 million to A$210 million, will support early development at the Deeps, with up to A$50 million available early under certain conditions. The first drawdown under Tranche A is expected by November 2025, subject to due diligence and legal finalization.

Interest on the facility is payable quarterly, and PCZM may capitalize interest for 18 months following first production. Notably, early repayment is permitted with no penalties, enhancing Orion’s financial flexibility as it transitions into production.

Offtake Agreement and Strategic Impact on Copper-Zinc Supply

The term sheet also includes a 10-year offtake agreement, a critical component that ensures long-term stability for Orion’s concentrate marketing. The deal covers 100% of bulk concentrates from the Uppers for five years, and 100% of copper and zinc concentrates from the Deeps for ten years, depending on production capacity.

Glencore’s right to offset receivables and payables under the agreement helps both parties manage risk and cash flow. The contract guarantees competitive market pricing, reinforcing Glencore’s role as a strategic partner in Orion’s path to production.

Orion CEO Tony Lennox called the deal a “watershed moment,” stating that the funding will fast-track the company’s transition from developer to producer. Meanwhile, Glencore Copper Marketing’s Toby Spittle emphasized Glencore’s commitment to finalizing due diligence and supporting the Prieska mine’s restart.

SuperMetalPrice Commentary:

This agreement signals a significant step forward for junior copper-zinc developers and highlights how strategic partnerships with global majors like Glencore can fast-track mine development. As demand for battery metals like copper and zinc intensifies, especially from energy transition sectors, projects like Prieska gain strategic importance. Orion’s flexible funding terms and long-term offtake visibility enhance its position in a tightening global supply chain. Investors and market analysts should watch for the completion of binding agreements, which could re-rate Orion as a near-term producer.