FOCUS Prieska Copper
FOCUS Prieska Copper Zinc Project Prieska Copper Zinc Mine (Pty) Ltd (PCZM) is developing the Prieska Copper Zinc Mine Project near Prieska in the Northern Cape. The mine is located in Copperton, 60km south-west of the town of Prieska. 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. NORTHERN CAPE BUSINESS 2023/24 36
Prieska De Aar 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 requisite 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 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. ■ 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 37 NORTHERN CAPE BUSINESS 2023/24
