Galena contracts GR Engineering, Byrnecut

Galena Mining has finalised contracts with GR Engineering Services and Byrnecut in relation to its $170 million Abra base metals project, located between Newman and Meekatharra.

Galena owns an 86 per cent stake in the lead and silver project through its subsidiary, Abra Mining.

Today, the company said it had finalised an engineering, procurement and construction (EPC) contract with GR Engineering Services, worth $79.5 million, to build Abra's processing plant and associated infrastructure.

Galena also awarded GR Engineering with a $10 million contract to relocate, refurbish and commission a paste plant for the project.

Ascot-based GR Engineering has won a string of EPC contracts this year, amounting to more than $380 million.

Meanwhile, Galena has also finalised a four-year underground mining contract with Perth Airport-based Byrnecut. It did not disclose the value of the contract.

Galena managing director Tony James said mining work was expected to begin in the coming weeks.

“Equipment and labour have been sourced and are ready for mobilisation in the second half of September,” he said.

Red Dust Holdings has begun bulk earthworks on the Abra project associated with the aerodrome, tailings storage facility, and processing plant infrastructure pads.

Abra is expected to produce 95,000 tonnes of lead and 805,000oz of silver per annum, over a 16-year mine life.

Galena is targeting first commercial production in 2023.

Its shares remain unchanged at 1pm AEST, trading at 23 cents. GR Engineering’s shares were down 0.9 per cent to trade at $1.74.