Galena Mining has awarded an engineering, procurement and construction (EPC) contract to GR Engineering Services for the Abra base metals joint venture (JV) project in Western Australia.
The contract will see GR Engineering supply a 1.2 million tonne a year lead sulphide flotation process plant and ancillary infrastructure for the Abra project.
It comes in the form of a guaranteed maximum price (GMP) with a value of approximately $74 million.
GR Engineering and Galena intend to share any cost savings below the GMP level.
“I am pleased we have been able to retain GR Engineering Services, which has the most relevant experience and understanding of our project, on terms that are in line with our feasibility study estimates,” Galena managing director Alex Molyneux said.
GR Engineering has commenced components of the EPC works up to a capped exposure level, with the main contract pending on the financial close of Abra’s project financing debt facilities.
The company was also the EPC contractor for leading sulphide base metals projects in Western Australia, including IGO’s Nova nickel-copper-cobalt mine and Doray Minerals’ Deflector gold-copper project.
Galena completed an outstanding definitive feasibility study which involved GR Engineering in July last year, with a view to develop Abra’s lead-silver mine and processing facility with a 16-year life.