Orion Minerals Ltd (ASX:ORN, JSE:ORN) has been granted a key water use licence by South Africa’s Department of Water and Sanitation (DWS) for the Okiep Copper Project (OCP) in the Northern Cape Province of South Africa.
The Integrated Water Use Licence (IWUL) approval for New Okiep Mining Company (Pty) Ltd is for the Flat Mines Project, for which Orion is finalising a bankable feasibility study (BFS) encompassing Flat Mine North, Flat Mine East and Flat Mine South deposits.
Final permitting milestone
Approval by the DWS marks the final major permitting milestone in progressing Orion’s Okiep Copper Project to construction and production.
The IWUL, which is authorised in terms of the National Water Act, Act 36 of 1998, and is valid for 20 years, includes approval of the Tailings Storage Facility (TSF) design on a site in proximity to the proposed new processing plant.
“A fantastic milestone”
Orion’s managing director and CEO Errol Smart said: “The granting of this Integrated Water Use Licence is a fantastic milestone for Orion, as it marks the culmination of almost four years of intensive environmental studies and innovative engineering and water management planning for the Okiep Copper Project.
“The Okiep Project is located in the Nama-Khoi District, one of the most arid and water-sensitive regions in South Africa.
"The local population is completely reliant on water supply from the Orange River that is pumped for more than 70 kilometres via an aged infrastructure that was originally developed for the mines.
ESG commitment
“Orion’s adherence to high Environmental, Social and Governance [ESG] standards has been showcased with this process, which will result in a benefit to the entire community.
"Not only will we assist in upgrading the town sewage works to prevent continued contaminated discharge, the redevelopment of key mines in the district will not place any additional burden on the already severely constrained municipal water supply but will create important jobs and economic opportunities in an impoverished region.”
Pathfinder project
The Flat Mines Project is the pathfinder project in Orion’s broader strategy to unlock the untapped potential of its significant mineral right holdings in the Okiep Copper District.
The development of the Flat Mines Project is based on the planned exploitation of defined mineral resources of 9.3 million tonnes at 1.3% copper across three known deposits - Flat Mines North, Flat Mines East and Flat Mines South.
A BFS on the Flat Mines Project is scheduled for completion in the December quarter of 2024 and is being prepared with a baseline target to process 780,000 tonnes per annum of run-of-mine material over a 12-year life-of-mine.
Orion is continuing to drill several known mineral deposits within a 7.5-kilometre radius as part of an incremental growth strategy.
BFS component
Granting of the IWUL is a crucial component of the BFS as this is a critical path permitting requirement for the start of construction and mining.
It follows the receipt of approval by the Nama Khoi Local Municipality for the rezoning for mining activities of the relevant area of the Mining Right, in accordance with the Spatial Planning and Land Use Management Act (SPLUMA).
With these approvals in place, the Flat Mines Project is fully permitted to proceed to construction following completion of the BFS and the subsequent securing of project funding.
The processing plant developed for the Flat Mines area is intended to evolve into a central concentrator plant for OCP.
Any mineralisation identified within the new prospecting rights is expected to have lower barriers for economic development given their close proximity to the proposed Flat Mines and central concentrator plant.