The mining sector has marked a pivotal moment as Orion Minerals entered into a non-binding agreement with Glencore for a funding package valued between $200 million and $250 million to advance the Prieska copper-zinc project in South Africa. Announced on September 16, 2025, the deal represents both a financial lifeline and a strategic partnership that could reshape Orion’s trajectory while reinforcing Glencore’s supply chain position in critical minerals.
The Prieska project, situated in the Northern Cape Province, is a redevelopment of a historic mine that once produced over 430,000 tonnes of copper and 1 million tonnes of zinc between the 1970s and 1990s. Its advanced stage of development, established infrastructure, and confirmed mineral resources make it highly attractive to investors. For Orion, securing Glencore’s backing addresses one of the greatest challenges junior miners face: financing large-scale projects in a volatile market. The package, expected to cover up to 60% of Prieska’s estimated $400 million capital cost, will accelerate its path toward production, with first output anticipated by late 2026 or early 2027.
For Orion, the financial boost also comes with strategic benefits that extend beyond capital. Glencore’s technical expertise, operational experience, and global market credibility are expected to strengthen project execution while enhancing Orion’s reputation with stakeholders. The deal is a strong endorsement of the project’s economic viability, given Glencore’s rigorous due diligence. In addition, Orion will gain long-term operational and growth opportunities, as success at Prieska could unlock further exploration and development potential across its regional assets.
Glencore’s involvement reflects its broader strategy of securing copper and zinc resources at a time when global demand is climbing due to electrification and renewable energy expansion. The offtake element of the deal aligns with Glencore’s trading model, ensuring reliable access to concentrates while bolstering its influence in global commodity flows. By partnering rather than acquiring outright, Glencore balances risk while maintaining control of essential supply chains, an increasingly common approach in today’s mining finance landscape.
The agreement also carries weight for South Africa’s mining economy. Development of Prieska is expected to create hundreds of jobs during construction and operation, generate procurement opportunities for local businesses, and contribute significantly to regional infrastructure and skills development. With South Africa seeking to attract more mining investment, projects like Prieska provide both economic momentum and confidence in the country’s ability to support large-scale ventures under improved regulatory frameworks.
While the path ahead still requires finalization of binding agreements, permitting, and technical planning, the partnership between Orion and Glencore underscores the industry’s shift toward collaborative growth models. It illustrates how junior miners and global majors can align to deliver projects that meet rising demand for critical minerals, support national economies, and secure future supply chains. If successfully executed, this deal has the potential to transform Orion into a producer of global relevance and further cement Glencore’s role at the heart of the energy transition.
