Tag Archives: Galena Mining

Galena signs up Contract Power for hybrid power gen facility at Abra JV

Abra Mining Pty Ltd, the joint venture company behind the Abra base metals project, has executed a power purchase agreement (PPA) with Contract Power Australia that could see the construction and operation of a hybrid power generation facility made up of a natural gas and solar energy array at the Western Australia project.

Announcing the PPA, Galena Mining, which owns 77.28% of the project, said Contract Power will build, own and operate an integrated hybrid power generation facility combining a 10 MW natural gas fired power station, a 6 MW solar array, 2 MW of battery energy storage and a 900 Kl LNG storage and regasification facility.

Power will be purchased by Abra under the PPA for an initial term of 16-years (extendable), it said.

Galena Managing Director, Alex Molyneux, said: “We’re pleased to partner with Contract Power on a clean, cost-effective power solution for Abra. Integrating solar with relatively clean natural gas instead of diesel achieves a marked reduction in Abra’s carbon footprint compared to alternatives considered in the tender process.

“Pleasingly, the design also offered the most cost-effective solution, in line with our feasibility study estimates.”

This definitive feasibility study outlined 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.

A Western Australia-based company wholly-owned by Pacific Energy Ltd, Contract Power specialises in the design, construction and operation of remote power stations for the mining and government sectors.

Contract Power has operated power stations around Australia under turnkey build-own-operate arrangements since 1999, and recent projects include a 56 MW gas fired power station for Mineral Resources Ltd’s Wodgina lithium project, a 18 MW gas fired station for Capricorn Resources’ Karlawinda project and a 18 MW gas and diesel power station at Wiluna Mining Corp‘s Wiluna gold project.

Contract Power’s Managing Director, Leon Hodges, said: “We are very pleased to be working with Galena on this important project and look forward to rewarding their confidence by delivering a world-class hybrid power station.

“Contract Power’s combined LNG and renewables integration capability has allowed our design team to maximise solar penetration as high as the economics and technology allows, providing the Abra project with the highest reliability and lowest cost of power on an unsubsidised basis.”

The PPA remains subject to the condition of Abra Mining Pty Ltd proceeding to final investment decision for the project, Galena said.

GR Engineering awarded with Abra EPC contract

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

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.