AMN - SOUTH AFRICA: Orion strengthens BEE partnership

Orion Minerals has strengthened its black economic empowerment (BEE) partnership in subsidiary Prieska Resources by adding Safika Resources as a shareholder. The company has welcomed the partner in the development of its flagship Prieska Zinc-Copper Project in South Africa’s Northern Cape province.

Prieska Resources will now include Safika Resources alongside Black Star Minerals and Kolobe Nala Investment Company.

Orion’s managing director and CEO Errol Smart said: “We are delighted to welcome Safika as a partner in our Northern Cape mining ventures.

“To us, Safika represents an ideal business partner in the Northern Cape.

“As a majority black-owned business that founded an extremely successful mining operation by taking it from a grassroots beginnings by securing undeveloped Prospecting Rights, to now holding one of the largest interests in, and management of, one of South Africa’s most successful mining ventures and one of the world’s top manganese producers, is a tremendous badge of success.

“Safika’s success demonstrates the potential for successful exploration and mining in the Northern Cape.

“What has impressed us most is Safika’s ethical approach to business and its extremely strong commitment to the community and stakeholders, which matches our own aspirations as we move to developing Prieska as a Tier 1 base metal producer and unlocking value from our large exploration holdings.”

Safika’s chairman Saki Macozoma said: “This transaction with Orion sees us further entrench our position with fellow Northern Cape shareholders to diversify into copper and zinc in the near term.

“We look forward to replicating our success in manganese achieved in the Tshipi é Ntle, Tshipi Borwa mine that broke ground in Q4 2011 and was the largest manganese ore exporter from South Africa in 2018.

“The development of the Prieska mine should be another material boost to the Northern Cape economy.”

Orion is progressing dewatering field trials and optimisation work at its Prieska project. Underground mining of the historical Prieska mine will commence on completion of mine dewatering and shaft refurbishment.

Work is underway to complete pilot-scale field trials on various aspects of mine dewatering, which is viewed as a critical area for project success.

Other project work underway includes following up optimisation opportunities identified in the BFS, formalising key supply contracts and expediting various required mining licences.

Smart said: “We identified numerous opportunities to improve on the Foundation Phase mining plan during the feasibility study process. In our opinion, these opportunities can result in quantum improvements in the already pleasing project financial returns and risk profile.

“We are thus making use of the time, whilst securing and formalising project funding, to ensure that the project execution incorporates as many of these improvements as possible, further derisking the project and providing for the best commercial outcome.

“The areas of focus that have been selected for priority optimisation work are chosen for their potential to make the largest positive impact on capital costs, reduce project development lead time and improve NPV. “

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