Name of the Project
Prieska zinc/copper project.
Location
Northern Cape, South Africa.
Client
Orion Minerals.
Project Description
The project aims to establish new mining operations at the Prieska copper mine, which has been closed since 1991.
A scoping study, released in December 2018, has confirmed the potential for the Prieska project to become a significant near-term, low-cost, zinc and copper concentrate producer while laying the foundations for future opportunities.
Phase 1 excludes any openpit mining and historical pillar extraction, and does not exhaust all known deposit extensions.
The study envisages a 2.4-million-tonne-a-year operation, producing about 70 000 t/y to 80 000 t/y of zinc and 22 000 t/y of copper concentrates.
The project is estimated to have an initial mine life of ten years.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 12.5% discount rate, of between A$400-million and A$440-million and an internal rate of return of 38%, with a payback of less than three years from first production.
Value
Between A$300-million and A$330-million will be required to complete the project.
Duration
Project construction is expected to start in the fourth quarter of 2019, with production expected to start in 2021.
Latest Developments
Orion Minerals has commissioned introductory mining familiarisation short courses within the Siyathemba municipality, in the Northern Cape, in line with its commitment to ensuring local communities benefit from its ventures.
The programme is aimed at raising public awareness of the mining industry and the opportunities that the industry creates, ahead of the planned development of its Prieska zinc/copper project.
The courses, on offer to members of the public and free of charge, have been running since April and will continue until June.
Participants are being provided with an overview of minerals mined in South Africa, an insight into how mining operations are conducted, an understanding of the career options available within the mining industry and a visit to the Prieska project, where participants get to witness first-hand the early phases of a mine development project.
The programme has, to date, been successfully completed by 158 participants, with the total number registered for the first programme being 400. Participants also earn accreditation towards industry-recognised mining-related qualifications.
Orion is currently in the advanced stages of completing a bankable feasibility study on the Prieska project.
Key Contracts and Suppliers
Orion Mining, DRA Projects, Fraser McGill, METC Engineering, Precision Capital Development Services, Bluhm Burton Engineering, METS South Africa, ABS Africa, Z* Star Mineral Resource Consultants and the MSA Group (scoping study).
On Budget and on Time?
Too early to state.
Contact Details for Project Information
Orion Minerals, tel +27 11 880 3159 or email info@orionminerals.com.au.