Orion Minerals is a business that focuses on the supply of the future-facing metals that will drive the global transition to a lower carbon future. In their exploration and development of critical minerals such as copper and zinc in the North Cape of South Africa, Orion is targeting production of the raw material that is critical for the clean energy and information revolutions.
“We have two projects with Feasibility Studies due this coming quarter,” says Errol Smart, Orion Minerals’ Managing Director and CEO. “At the same time, we are pursuing a drilling campaign where we have had some of the most spectacular copper drill results reported by any exploration company for a while.”
These assets are not just promising for Orion Minerals, they are a potentially timely injection of minerals vital to the future of a swathe of industries.
“In a market where people are desperate to discover and develop copper mines, a company like Orion that has already established a copper mine site and has successfully carried out trial mining, with two feasibility studies planned for the coming weeks, is a stand-out investment opportunity,” Smart says.
But the assets Orion Minerals has, and the technical know-how it has at its disposal, are only part of the equation. It also has the experience needed to operate profitably within South Africa’s economic and regulatory framework.
“South Africa is not an easy operating environment, particularly for junior miners,” Smart tells us. “With our completely South African management team, we can navigate the regulatory environment and have achieved very good outcomes with our permit acquisition and licensing of projects.”
The Right Environment
Orion Minerals has also demonstrated, through its trial mining exercises, the benefits of operating in South Africa.
“The country has a huge, experienced skills base, the supply chain is well-developed and there is a good infrastructure network,” Smart explains.
Smart is the first to acknowledge that this has not always been the case.
“These are all issues which have been a challenge in recent times, but through massive initiatives, largely supported by the mining industry in South Africa and in collaboration with the President’s office, we have seen significant improvements in infrastructure and the supply of reliable power,” says Smart.
When we talk with Smart, Orion Minerals has seen 106 days without power interruptions, the rail links to the ports are significantly improving, and road transport is available and accessible. All of which has led Orion Minerals to upscale its original vision.
“We as a company have adapted our business plans from our original intentions to immediately go into large-scale development,” Smart says. “We are looking at a stepped, modular growth platform, with a much earlier start, with first production occurring within 12 months of our securing finance.”
From there, the project will continue to grow steadily to deliver what we have seen in feasibility studies; delivering as much as 30,000 tons a year of copper, and 70,000 tons a year of zinc.
Drawing from Communities
There is another resource that Orion Minerals has found in plentiful supply in South Africa, and that is the wealth of talent that the South African mining industry can provide.
“One of the key pillars of our business plan is to hire South African nationals as our employees and expertise base,” Smart tells us. “South Africa has had a massive brain drain in recent years. The younger generation of graduates, our shining stars, are increasingly looking to go and get international experience moving out of South Africa. You have got the biggest mining industries, the platinum and gold industries, seeing massive job losses. Across the board, the entire South African mining industry is under pressure. We are seeing job positions lost due to economic insecurities. But Orion are using that as an opportunity to demonstrate that we can recruit. We are showing that people are willing to move and become residents in our host communities and be part of an exciting prospect of modern future mining in South African”
This is a key part of Orion Minerals’ approach to its people. They are not kept in isolated encampments before shipping them miles away to their homes when they are not working. All of Orion Minerals’ staff become resident in surrounding towns, and importantly, part of those host communities. A large focus is also upskilling the existing host community to become employees and participate in the larger value chain that supports a mining operation.
“We have shuttle buses going back and forth from the mine to local towns. We get our basic supplies from local companies, and we found that people were happy to base themselves in this rural landscape with suitable schools and suitable medical cover. People are comfortable to go and live in that environment.”
The approach was first trialled as an experiment during the initial mining exercise, with only 200 people.
“Its success shows that we can secure top people who will base themselves here and become a part of our host community,” Smart says. “At the same time, we are upskilling people in these existing communities, with training programs that have been underway for three years. Now they are starting to bear fruit, and we have achieved a ratio of 56% local host community employees.”
It is not only good for Orion Minerals from a skills perspective, but also for its host communities. Its staff are receiving salaries and using that money to pay for local services, and supporting local businesses. Their kids are going to local schools. This all benefits the local economy, and is a key part of Orion Minerals’ business strategy.
“There is a collaborative energy that goes into building this new mining enterprise,” Smart says proudly.
With the right assets, the right people, and a bold strategy, Smart has a clear vision for the future.
“The next twelve months are going to be pivotal. We have gone through a long period of exploration and feasibility studies. We took a real landmark step in establishing the mine site and executing a trial mining exercise,” Smart says. “Our next step is to become fully financed, establish the mills and concentrator, and then it will be growth, growth, growth. We are building the mines we have already discovered to their immediate potential, and then expanding that potential through exploration. We are drawing high-grade mineralisation on the extensions of these ore bodies. That is where we see a fantastic opportunity during the global shortfall in copper supply that is growing and urgent.”
