Orion Unveils Definitive Feasibility Study for R7.59bn Prieska Copper Project

Orion Minerals has unveiled its definitive feasibility study for the Prieska Copper Zinc Mine (PCZM) project in the Northern Cape, setting the stage for what industry observers view as a pivotal development in South Africa’s mining sector. The study details a brownfields operation expected to yield 22,000 tonnes of copper and 65,000 tonnes of zinc per year at a capital cost of R7.59 billion (approximately A$607 million), with construction set to begin imminently and first metal production anticipated within 13 months.

Errol Smart, Managing Director and CEO of Orion Minerals, presented the study at the Joburg Indaba last October. “With a fully permitted project in the lowest cost quarter, our capital intensity is top order,” he said, noting that PCZM’s capital intensity is estimated at under $9,200 per equivalent ton—substantially lower than comparable projects that cite figures near $12,000 per ton. This cost efficiency has been central to Orion’s strategy as it redefines its approach to long-held projects.

The Prieska project, which has been on Orion’s books for nearly a decade, will proceed in two phases. The first phase focuses on extracting near-surface sulphide ore, an approach that necessitates separate processing facilities but will pave the way for a deeper mining phase. The study estimates a total mine life of 13.2 years, with the potential for extension, a timeline that underscores the company’s commitment to long-term production.

The feasibility study projects an all-in sustaining cost of $4,550 per tonne of copper equivalent metal sold—a figure that gains significance against the backdrop of rising global copper prices. In May 2024, the London copper price neared $11,000, and as of March 25, 2025, it was trading around $10,000. Kostas Bintas, Global Head of Metals and Minerals at Mercuria, commented on the market’s tightening conditions, suggesting that prices could exceed $12,000 per ton.

Following the study’s release, shares in Orion dipped 5.5% on the Australian Securities Exchange as investors weighed the implications of the new data. The company is now focusing on finalizing a project financing strategy that will combine debt, equity, and offtake arrangements. This financial blueprint is not only expected to underpin the Prieska project but also to support the company’s broader expansion plans, including a definitive study for the Flat Mines Project at the Okiep Copper Project, which targets an annual production of 30,000 tonnes of copper.