Tag Archives: Abra

GR Engineering captures A$90 million of EPC contracts from Galena Mining

Base metals, Mineral processing, Mineral project development, Mining services, , , , , , , ,

GR Engineering Services has been given the notice to proceed with the engineering, procurement and construction (EPC) of a 1.2 Mt/y lead sulphide flotation processing plant at Galena Mining Limited’s majority-owned Abra base metals project in Western Australia.

The contract, which follows a conditional agreement from February 2020, comes with a value of A$79.5 million ($59 million) to be realised predominantly in GR Engineering’s 2022 financial year.

In addition, Abra Mining has also awarded GR Engineering an EPC contract to relocate, refurbish and commission the Abra Mining-owned Higginsville paste plant. The value of this contract is a further A$10 million.

Geoff Jones, Managing Director, said: “GR Engineering looks forward to continuing its solid working relationship with the Abra Mining team on the delivery of the project and supporting Abra Mining as it becomes the next Australian base metals producer.”

GR Engineering awarded with Abra EPC contract

Base metals, Mineral processing, Mineral project development, Mining services, Precious metals, , , , , , , , , ,

GR Engineering Services has been awarded a conditional engineering, procurement and construction (EPC) contract to deliver a 1.2 Mt/y lead sulphide flotation process plant and ancillary infrastructure for Galena Mining’s Abra Base Metals project in Western Australia.

The award, worth some A$74 million ($50 million), follows work carried out by the ASX-listed engineering company on the feasibility study and at the preliminary design stage of Abra.

The work will be undertaken on a guaranteed maximum price basis, according to GR Engineering, which confirmed that the contract remained subject to GR Engineering being issued with a full notice to proceed. This is dependent on Abra Mining Pty, Galena’s operating subsidiary, achieving financial close on its proposed project financing facilities. Galena, which owns 86.16% of the project through Abra, has said it will require A$170 million of pre-development capex to get the mine up and running.

GR Engineering has already commenced early engineering works up to an agreed capped amount, it said.

Geoff Jones, Managing Director of GR Engineering, said: “We are pleased to have been awarded the contract for the delivery of the Abra Base Metals project, which has followed GR Engineering’s involvement to date in the project’s feasibility study and preliminary design work.”

Galena completed a definitive feasibility study on Abra last year for development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing around 95,000 t/y of lead and 805,000 oz/y of silver after ramp-up.

Earlier this month, the construction of the Abra box cut commenced (pictured).

GR Engineering gets the Abra lead-silver DFS gig

Base metals, Comminution of minerals, Mineral project development, Mining project news, Mining services, Precious metals, , , , , , ,

Galena Mining has retained Australia-based GR Engineering Services to carry out the bulk of the definitive feasibility study (DFS) on its Abra lead-silver project in Western Australia.

The engineering company will undertake key portions of the DFS related to plant design, capital and operating cost estimation, and process and non-process infrastructure evaluation.

The commencement of the study comes following an “excellent” prefeasibility study for Abra, according to Galena. This envisaged a 1.2 Mt/y underground mine and conventional flotation concentrator for the project, producing a high-grade lead-silver concentrate containing some 91,000 t/y of lead and 760,000 oz/y of silver over a 14-year mine life.

GR Engineering Managing Director, Geoff Jones said: “GR Engineering was involved in the Abra PFS and we are pleased to have been engaged to deliver key aspects of the DFS and to assist Galena to realise the significant potential of the Abra base metals project.”

The DFS is targeted for completion in mid-2019. In the meantime, Galena expects to make progress on a number of other milestones including an updated resource, a review of the Abra ore reserve and underground mine design/schedule, permitting, and continuation of discussions related to offtake and project finance.

Galena is targeting commencement of construction at Abra in 2019, followed by initial production in 2021 and the first full year of steady-state commercial output in 2022.

During the past 11 years, GR Engineering has completed more than 40 design and construction projects and over 160 feasibility studies including a number of Australia base metals projects, Galena said.