Australian mining company Orion Minerals is acquiring the Okiep Copper Complex (OCC) in the Northern Cape of South Africa for approximately R85.5mn ($5.68mn).
The deal will allow Orion to combine the newly formed copper development with its flagship Prieska copper and zinc project. Orion plans to eventually convert the project into a substantial base metals production hub in the Northern Cape district, according to media reports.
The output from OCC would increase Prieska’s estimated production of 22,000mt of copper and 70,000mt of zinc per year. Production may commence within 18-24 months consistent with the mining works program submission.
Under the agreement, Orion will hold a 56.25pc stake in Tantalum Mining with 43.75pc held by South Africa’s Industrial Development Corporation. Additionally, the company will take 100pc ownership of two other companies, Nababeep Copper and Bulletrap Copper.
The OCC site has produced more than 2mn mt of copper during 150 years of operations prior to closing in 2003. The complex was mined by Newmont from 1940 before it sold the project to Goldfields, which then sold it to Metorex in 1998.
($1 = R15.04)