ASX- and JSE-listed Orion Minerals has been granted an integrated water-use licence (IWUL) for the pathfinder Flat Mines project at its Okiep copper project, in South Africa's Northern Cape province, with the Flat Mines project now fully permitted to proceed to mine development.

The IWUL, which is valid for 20 years, also includes approval of a tailings storage facility (TSF) to be built on a site near a proposed new processing plant.

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 bankable feasibility study (BFS) on the Flat Mines project is under way and scheduled for completion by year-end. Orion points out that the granting of the IWUL is a crucial component of the BFS, as it is a critical path permitting requirement for the start of construction and mining.

It adds that this 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 the grant of the IWUL and the Spluma approval in place, the Flat Mines project is now fully permitted to proceed to construction following completion of the BFS and the subsequent securing of project funding.

The water use activities applied for include the abstraction of water from various sources for use in the operations and for the responsible disposal of waste rock and tailings. It also includes any activity that may impact on surface or underground water resources.

The water uses authorised extend to numerous crossings of water courses by roads and powerlines, as well as stormwater diversion and water management infrastructure.

Orion points out that, in the baseline surface water study, the water in the Nababeep stream was found to be polluted by effluent discharged from the Nababeep municipal wastewater works (NWW) and that the company has committed to assist the Nama Khoi municipality to upgrade and manage the NWW operations to ensure the discharge water quality meets required standards.

The Flat Mines project will use mainly recycled water and will use only limited volumes of groundwater sources. It will also not further burden the current potable water supply to the district, sourced from the Orange river, as this supply is under severe pressure.

The company further points out that it chose to build a TSF on an area covered by prior mining operations for the evaporation of excess process water (paddies). Groundwater studies by Orion indicated that groundwater quality downstream of the proposed TSF site is already impacted by these paddies.

Following the construction and start of TSF operations, Orion will remediate the existing impacts, resulting in a steady overall improvement in groundwater quality downstream of the TSF.

Overall, the Flat Mines operations are expected to result in a net improvement of surface and groundwater quality in the mining area and demonstrate the benefits that mining can bring for remote communities and environment, Orion states.

"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 km via an aged infrastructure that was originally developed for the mines.

"Orion's adherence to high environmental, social and governance 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," says Orion MD and CEO Errol Smart.