By The Rio Times | Created at 2026-10-20 02:11:28 | Updated at 2026-10-20 03:45:21
1 hour ago
SOUTH AFRICA · COPPER AND ZINC
Key Facts
- —The country South Africa is Africa’s most industrialised economy and a major miner of platinum, gold, coal and manganese.
- —What happened US$40 million of Glencore funding for Orion Minerals’ Prieska copper and zinc mine became unconditional on Monday 19 October 2026.
- —The money The US$40 million is the first of two tranches, and the second tranche of US$210 million is still conditional on funding the deeper mine.
- —The timing The first payment is expected by the end of October 2026, and first copper and zinc output is targeted for the end of 2027.
- —The sales deal Glencore will buy all concentrate from the first section for five years, and from the deeper section for at least 10.
- —What it means for you The South Africa mine adds a new, if small, source of copper and zinc, both on the US critical minerals list.
- —Still open How Orion will raise the money for the deeper mine, and when the second tranche could be released.
Glencore’s US$40 million funding became unconditional on Monday 19 October 2026, clearing the way to restart a South Africa mine for copper and zinc. Orion Minerals, listed in Melbourne and Johannesburg, said in its stock-exchange filing that the first payment is due by the end of October.
For US readers, the South Africa mine adds a small new source of copper and zinc, both on the US critical minerals list. Glencore, the Swiss-based miner and metals trader listed in London, will buy its output.
What Orion and Glencore Agreed
Orion’s local subsidiary signed the final contract to sell Glencore the mine’s concentrate, the metal-rich powder left after ore is processed. It also signed an agreement between the mine’s financiers, which cleared the last conditions on the first US$40 million, called Tranche A.
Moneyweb, the South African financial news site, put the sum at R658 million (about US$40 million). Glencore’s Toby Spittle said the company was pleased to help bring Prieska back to life and make Orion South Africa’s next copper producer.
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How the Glencore Prepayment Works
The money is a prepayment, meaning Glencore pays up front and is repaid in copper and zinc concentrate rather than in cash. Orion can settle the facility at any time without a penalty.
Glencore earns a market-related return, which steps down once commercial production is declared. The return is added to the balance until about 18 months after first production from the first mine section.
Orion guarantees the obligations of its Prieska subsidiary under the facility. Triple Flag Precious Metals, a royalty and streaming company, holds security that ranks equally with Glencore’s.
What the First Tranche Pays For
Tranche A pays for the Uppers, the shallower first stage of the South Africa mine, targeted to start producing by the end of 2027. Orion has chosen Torque Africa for drilling and ENPROTEC to build and run a concentrator rated at 20,000 tonnes a month.
The money also lets construction of an accommodation village for workers begin at the site. Orion says it is mobilising construction crews and equipment while it keeps looking for funds for the deeper section.
Why Prieska Is Being Revived
Prieska produced copper and zinc from the 1970s to the 1990s, according to Orion’s project page. Over those years it yielded more than 430,000 tonnes of copper and 1 million tonnes of zinc.
The site lies near the village of Copperton in the Northern Cape, about 270 kilometres south-west of Kimberley. Miningmx reported that the South Africa mine is scoped for 22,000 tonnes of copper and 65,000 tonnes of zinc a year.
The Second Tranche and the Deeper Mine
The US$210 million Tranche B depends on, among other things, full funding for the Deeps and extra outside money for Glencore’s prepayments. Up to US$50 million of it may be drawn early for early works on the Deeps if conditions are met.
Orion says it is talking to existing and new funding partners about the rest of the money. Miningmx reported that the Deeps still needs about R2 billion (about US$122 million) from other sources.
How the Deal Got Here
Orion and Glencore announced the financing on Monday 9 February 2026. Business Day reported on Thursday 17 September that the South African Reserve Bank, the central bank and foreign-exchange regulator, had approved the foreign funding.
Miningmx reported a year earlier that Orion hoped for first copper by December 2026, so the target has since moved back by about a year. Orion’s shares rose about 3% in Johannesburg on Monday, the outlet said.
What It Means for US Readers
The US Geological Survey, the federal science agency, published a 60-entry critical minerals list on 6 November 2025. Copper was one of 10 minerals added, and zinc is on the list too.
Glencore sells metal worldwide, and the Orion contract gives it flexibility to deliver anywhere, so American buyers could eventually receive some of the output. The South Africa mine is small next to the big producers, so the deal matters more for supply diversification than for the price of copper.
Investors can follow Orion through its listings in Melbourne and Johannesburg, while Glencore shares trade in London. For more on the province, read Ramaphosa Backs Zinc Smelter on 16 October, and for the sector’s slump, South African Mining Falls 12.7% in August.
What Is Not Known
How Orion will raise the money for the Deeps is open, and Tranche B cannot move until it does. No date has been set for the second tranche.
The filing gives no total build cost for the whole mine and no jobs figure. It also does not say what return rate Glencore will earn on the prepayment.
More: South Africa news in English, every day from The Rio Times.
Frequently Asked Questions
Who is Orion Minerals?
Orion Minerals is a copper and zinc developer with its head office in Melbourne and shares listed in Melbourne and Johannesburg. Its main project is the Prieska Copper Zinc Mine in South Africa’s Northern Cape.
What did Glencore agree to provide?
Glencore will provide a US$40 million prepayment now and up to US$210 million more if conditions are met. In return it will buy the mine’s concentrates under long-term contracts.
When will the Prieska mine produce copper?
Orion targets first production from the Uppers by the end of 2027. The first US$40 million payment is expected by the end of October 2026.
Is the full US$250 million secured?
No, only the first US$40 million is unconditional. The other US$210 million depends on the Deeps being fully funded and on Glencore raising outside money.
Why does the South Africa mine matter to Americans?
Copper and zinc are both on the US critical minerals list, and the South Africa mine adds a new supply project outside the biggest producers. The volumes are small, so the effect is on supply diversification more than on prices.
Sources: Orion Minerals, ASX and JSE release on Glencore financing, 19 October 2026; Moneyweb, Orion secures offtake agreement with Glencore, 19 October 2026; Miningmx, Orion offtake with Glencore gets green light, 19 October 2026; Business Day, Orion cracks Reserve Bank nod for Prieska funding, 17 September 2026; Orion Minerals, Prieska Copper Zinc project page, 19 October 2026; US Geological Survey, final 2025 critical minerals list, 14 November 2025.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
