Orion CEO on what’s behind the recent protest action at Prieska mine

Orion Minerals' Managing Director and CEO, Errol Smart, recently spoke with CNBC Africa's Zinathi Gquma to shed light on the recent protest action at the Prieska Copper-Zinc project. Smart addressed the disruption caused by members of the Siyathemba Business, Workers, & Community Forum, who have been at odds with the company. Smart explained that Orion Minerals has been engaging with the community of Prieska for many years in a bid to empower and involve them in the project. However, he highlighted that there has been a small group of individuals within the community who have been pushing the company for special treatment, demanding contracts without going through the competitive bidding process. The CEO emphasized that Orion has a long-term program in place for the community, with a focus on training operators and technicians who will be essential for the project's success over the next two decades. He mentioned that the company had initiated a training program earlier this year, only to have it disrupted by the recent protest action led by a faction within the community. Smart clarified that the project has not yet been fully financed, despite having obtained mining rights. Once the project financing is secured, the training programs worth millions of rands will kick off, benefiting individuals who have already submitted their CVs for consideration. The CEO also addressed the allegations of unfair business practices, stating that certain individuals had demanded contracts through threats and extortion, which Orion Minerals refused to entertain due to ethical considerations. In response to the question of whether the protesting group was informed of their disqualification from the bidding process, Smart confirmed that they had been notified. He explained that the group's bid, while initially competitive, did not offer substantial benefits to the local community as most of the work was slated to be done outside of South Africa. Smart stressed the importance of ensuring that the project benefits South Africa and the Prieska community, with a focus on localizing as much of the work as possible. He outlined the detailed planning and procurement processes that need to take place before major construction begins, emphasizing the need for a meticulous business plan. Despite the challenges posed by the recent protests, Smart expressed confidence in Orion Minerals' ability to navigate the situation and move forward with their long-term vision for the Prieska project. This development sheds light on the complexities of community engagement and stakeholder management in the mining industry, underscoring the importance of transparency, fairness, and ethical practices in project execution.