PERTH (miningweekly.com) – Dual-listed Orion Mining was hoping to conclude bank financing discussions for its Prieska copper/zinc project, in South Africa, by Christmas this year, allowing for a final investment decision in the new year.

Speaking on the sidelines of Paydirt’s Africa Downunder conference, in Perth, Orion MD and CEO Errol Smart told Mining Weekly Online that the company was in discussions with a number of banks that have started due diligence on the Prieska project, with Orion also initiating discussions with a number of offtake partners that have offered co-funding arrangements.

“These guys are talking about everything from equity to loan facilities to bridging finance facilities. There are a mix of financial instruments on the table from eight different parties, so we are busy comparing like-for-like and what will work the best for us.”

Smart noted that Orion’s aim was to reduce the risk of dilution to company shareholders, given that Orion also had valuable Australian assets.

“We want to take as little dilution as possible in Orion, so that may mean that we would have to consider some more dilution at mine level, but as long as we keep a controlling interest. That is very important to us.”

The A$378-million Prieska project is expected to produce at a rate of 2.4-million tonnes a year, producing 189 000 t of copper and 580 000 t of zinc in its ten-year foundation phase.

Orion was granted a mining right for the Prieska project earlier this week, paving the way for construction to start.

The company also struck a collaboration agreement with underground miner Byrnecut Offshore, that would allow for the underground mine development and production at Prieska.

Smart on Wednesday said that the relationship with Byrnecut could see the repatriation of South African miners back to South Africa, as the company had a number of South African staff on its books.

Prieska will be developed as an automated-enabled operation, allowing automated mining to take place. Smart said that Orion would also look to employ an electric fleet at the mine, rather than a diesel fleet, but said that a decision on this would only be taken in 24 months.

The automation option would allow Orion to train up some of the 20 000 unemployed people in the nearby Prieska community, following in the footsteps of Australian gold miner Resolute Mining, and its operations in Mali.