Base metals: Orion Minerals can start mining copper and zinc with South Africa’s approval
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Orion Minerals (ASX:ORN) will start mining at its flagship Prieska copper-zinc project in South Africa, subject to a final investment decision, after the South African Department of Minerals Resources and Energy granted it a mining right.
Shares in the company rose 10 per cent on the news, which comes less than two months after the environmental authorisation grant and three months after the release of a positive bankable feasibility study.
“Our strategy to deliver a substantial new base metals mine at Prieska is rapidly gaining momentum and the award of this permit is testament to the support of the South African authorities for new investment in a modernised mining sector,” CEO Errol Smart said.
“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.”
Earlier in August Johannesburg-based broker Vunani Securities described the project as a “rare investment opportunity”.
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