Orion Minerals has announced a capital expenditure (capex) of A$607 million ($382 million) for the Prieska Copper Zinc Mine in South Africa. This estimate, based on the 2025 Definitive Feasibility Study (DFS), includes contingencies for the large-scale project. This signals a major investment in copper and zinc production.
Two-Phase Development Strategy
The Prieska mine, located in South Africa’s Northern Cape Province, will undergo a two-phase development. This strategy is specifically designed to mitigate risks while accelerating value generation from the underground base metal operation. The DFS outlines the Upper-Level Phase, which will focus on near-surface supergene and oxide ores. As a result, production is expected to begin 13 months after construction starts and will last for 4.3 years.
During this initial phase, workers will de-water the main shaft, which is currently flooded to a depth of 265 meters. In addition, they will refurbish existing infrastructure to support future, deeper mining activities. Once the Upper-Level Phase is complete, the Deeps Phase will follow. This second phase is projected to last 11 years and will overlap with the final 2.2 years of the Upper-Level Phase. Consequently, this will create a combined production timeline of 13.2 years.
Financial Outlook and Feasibility
Orion Minerals’ Managing Director and CEO, Errol Smart, emphasized the DFS as a significant milestone. He said, “The DFS confirms the potential for a long-life, financially strong mining operation through this two-phase development plan. This approach reduces risks and accelerates cash flow.”
The DFS projects a pre-tax net present value (NPV) of A$797 million ($501.4 million) and an internal rate of return (IRR) of 31%. The payback period will be 5.8 years from the start of construction. Peak funding needs are estimated at A$578 million ($363.6 million). By utilizing existing infrastructure, the transition to production will be faster and more cost-effective.
Mineral Resources and Reserves
The Prieska project has significant mineral resources. The mine holds 31 million tonnes of material with an average grade of 1.2% copper and 3.6% zinc. Probable ore reserves are estimated at 15.6 million tonnes, with grades of 1.1% copper and 3.1% zinc. Practara Metals and Mining Advisory independently evaluated the DFS, confirming the project’s feasibility.
Next Steps for Orion Minerals
Orion Minerals plans to secure project financing. The company will implement development strategies, negotiate concentrate offtake agreements, and finalize early works contracts with service providers. With strong financial projections and a solid development plan, the Prieska Copper Zinc Mine is set to play a significant role in the global copper and zinc market.
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