Orion Minerals Ltd (ASX:ORN) (JSE:ORN) has been granted a Mining Right over its portion of the Prieska Copper-Zinc Project in the Northern Cape Province.
The grant of the Mining Right represents a major step towards the development of Prieska and clears the way for construction to commence.
This key permitting milestone comes just over a month after receiving the Environmental Authorisation related to the project.
Demand for copper is expected to soar
Orion managing director and CEO Errol Smart said: “Our strategy to deliver a substantial new base metals mine at Prieska is rapidly gaining momentum.
“Receiving the Mining Right is a major milestone in the development of the project and the award of this permit is testament both to the vision of the Orion leadership team and to the support of the South African authorities for new investment in a modernised mining sector.
“The Prieska Project represents a valuable strategic asset in the global base metals sector, being one of the few permitted mid-tier base metal development assets well positioned to move into development and production.
“Our timing with this project could not be better – demand for copper is expected to soar over the next decade on the back of transformational growth in the electric vehicle and green energy sectors.”
The SA gov, and the JSE, are also watching Orion's progress. The government because it is keen to see more investment in mining after two decades of decline and the exchange because it is keen to see the creation of a small mining sector similar to that in Canada and Australia.
— Orion Minerals (@OrionMinerals) August 22, 2019
Orion has achieved several milestones in the 16 months since the submission of the application, including the announcement of a pivotal black economic empowerment partnership, the upgrading of the Prieska Mineral Resource to a globally significant resource of 30.49 million tonnes at 1.2% copper and 3.7% zinc and the completion of the Prieska Bankable Feasibility Study (BFS).
Next steps are the advancement of Prieska Project planning and the formalisation of project financing.
Grant of the mining right to the south eastern strike extension of the Prieska orebody on the Vardocube prospecting right area is imminent.