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ORION MINERALS LIMITED - Update on recent community protests in South Africa

Release Date: 10/05/2021 07:05
Code(s): ORN     PDF:  
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Update on recent community protests in South Africa

Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1


Update on recent community protests in South Africa


Orion supports the strong stance taken by the Minerals Council South Africa and reaffirms its firm
commitment to ethical business conduct and positive community engagement

Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) provides the following update following the
recent community protests and unrest being experienced at a number of mining operations and various
communities across parts of South Africa.

Orion notes the strong stance adopted by the Minerals Council South Africa condemning the recent unrest,
which is being experienced in the run-up to local municipal elections being held later this year.

In almost all cases, the protests are led by a small group of individuals who are seeking to disrupt legitimate
business operations by subverting procurement and tendering practices.

The Minerals Council has issued a statement condemning the unlawful protests which have been seen in
some areas, and has called on the authorities to act swiftly and impartially to protect the safety of
communities, employees and private property.

The Minerals Council has in particular, expressed its support for and solidarity with members like Orion, who
have taken a firm public stance against corruption and illegitimate demands at its Prieska Copper-Zinc
Mine (PCZM) in the Northern Cape.

In response to recent unrest in the town of Prieska, located 68km from the Prieska mine site, Orion has
obtained an interdict in the Northern Cape High Court in Kimberley, to prevent any interference in its
business at PCZM by protesters operating outside the law. While Orion respects the constitutional right of
lawful public protest, its support does not extend to intimidatory threats and the possibility of behaviour
that will put lives as well as livelihoods at risk.

The High Court has also specifically directed the South African Police Service to enforce the terms of its
order.

The protest action has had minimal impact on progress on the PCZM project, with most work-streams
currently focused off-site. Negotiations with potential project financiers are progressing well and the
Company expects to secure term sheets in the coming months.


Orion’s Managing Director and CEO, Errol Smart, commented:


“Recent disruptions to orderly community life in the Prieska community (68km from the Prieska Mine Site),
instigated by the self-serving interests of aspirant politicians and unscrupulous contractors using coercion
to support their bids to secure contracts at the mine, is unacceptable.

“Whilst it is reasonable and legitimate for disadvantaged communities to request that project developers
maximise local procurement and employment in host communities, there is an important balance that
needs to be maintained in order to avoid compromising health and safety, quality and delivery on mines.”

“It takes time and significant investment to achieve local skills and enterprise development of suitable
standard to sustain high levels of local employment and procurement in communities where little or no
mining has taken place for many decades and, in some cases, ever. Orion has made the commitment and
through sustained and constructive engagement, signed an MOU with the Siyathemba Municipality, which
is the legitimate authority democtractically elected by the local community. The MOU successfully navigates
this difficult balance and achieves the goals of maximising value for the local community without placing
unachievable financial or operational demands on the Prieska Mine. In addition, a detailed social and
labour plan fulfilling the requirements of the 2018 Mining Charter was developed and approved by relevant
authorities after detailed consultation with community representatives.

“Orion remains absolutely committed to its high ESG standards and to developing Prieska as a flourishing
and important mining hub in South Africa. Orion’s activities at the Prieska Mine site have not been materially
impacted and progress on project financing and planning of mine development activity is progressing as
anticipated.”


For and on behalf of the Board.


Errol Smart
Managing Director and CEO


10 May 2021


ENQUIRIES

Investors                                     Media                                          JSE Sponsor
Errol Smart – Managing Director &             Nicholas Read                                  Monique Martinez
CEO
Denis Waddell – Chairman                      Read Corporate, Australia                      Merchantec Capital
T: +61 (0) 3 8080 7170                        T: +61 (0) 419 929 046                         T: +27 (0) 11 325 6363
E: info@orionminerals.com.au                  E: nicholas@readcorporate.com.au               E: monique@merchantec.co.za


Disclaimer
This release may include forward-looking statements. Such forward-looking statements may include, among other things,
statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs
and results, capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates,
and are or may be based on assumptions and estimates related to future technical, economic, market, political, social
and other conditions. These forward-looking statements are based on management’s expectations and beliefs
concerning future events. Forward-looking statements inherently involve subjective judgement and analysis and are
necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Orion. Actual results
and developments may vary materially from those expressed in this release. Given these uncertainties, readers are
cautioned not to place undue reliance on such forward-looking statements. Orion makes no undertaking to
subsequently update or revise the forward-looking statements made in this release to reflect events or circumstances
after the date of this release. All information in respect of Exploration Results and other technical information should be
read in conjunction with Competent Person Statements in this release (where applicable). To the maximum extent
permitted by law, Orion and any of its related bodies corporate and affiliates and their officers, employees, agents,
associates and advisers:
•      disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change
       in expectations or assumptions;
•      do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of
       the information in this release, or likelihood of fulfilment of any forward-looking statement or any event or results
       expressed or implied in any forward-looking statement; and
•      disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for
       negligence).




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Date: 10-05-2021 07:05:00
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