Galena Mining Ltd (ASX:G1A, FRA:GM6) has executed two key logistics contracts to support future production from the Abra Base Metals Project that is under development in the Gascoyne region of Western Australia’s Mid-West.
Abra Mining Pty Limited (AMPL), the joint venture company for the Abra Project has signed a Port Access Agreement with Mid-West Ports Authority and a Haulage, Storage and Stevedoring Services Agreement with Qube Ports Pty Ltd.
Route to export “critical”
These new contracts support the transportation and export of high-grade lead-silver concentrate from Abra via the Geraldton Port.
Galena managing director Tony James said: “Having an efficient, safe and secure route to export concentrates from Abra is a critical part and milestone for the Abra project.”
Port Access Agreement
With the Port Access Agreement, AMPL has the right to annually export up to 140,000 tonnes of mineral concentrates through the Berth 6 common user facilities at Geraldton Port for an initial period of 10 years.
Export Logistics Agreement
Under the Export Logistics Agreement, Qube will provide all equipment and personnel to undertake the loading, transportation, storage and stevedoring of Abra’s mineral concentrates using their Rotabox™ system.
"Qube are well established in the region and provide proven safety systems for moving high volumes of materials by road and across port boundaries, and we are pleased to partner with them to export our product out of the Mid-West,” James said.
"Geraldton Port has the infrastructure in place and a strong track record in the export of similar mineral concentrates which delivers a considerable benefit to the project.”
First production in 2023
Abra is poised to join the ranks of high-margin Australian base metals producers with first production of its high-value, high-grade lead-silver concentrate scheduled for the first quarter of 2023.
Qube’s Rotabox™ system enables the secure transport of Abra’s high-value, high-grade lead-silver concentrate between the mine and the port precinct, as well as a proven system for bulk loading of mineral concentrates into ships’ holds in a manner that minimises environmental impact.
This agreement with Qube has an initial term of five years with an extension option of an additional five years.
About Qube Ports
Qube Ports is an integrated port solutions provider in Australia with bulk and general handling facilities in more than 40 Australian, New Zealand and South-East Asian ports.
It provides purpose-designed solutions for its customers, handling containers, bulk, automotive and general cargo.
Qube’s Bulk Cargo Integrated Solutions specialises in the development and management of solutions incorporating stevedoring, transport and storage of bulk products through various load and discharge systems.
READ: Galena Mining ramps up Abra development work with major contracts finalised
These logistics contracts follow hot on the heels of AMPL finalising major contracts to progress the development of the lead-silver project.
Last month AMPL awarded the underground mining contract to Byrnecut Australia Pty Ltd.
The plant construction contract with GR Engineering Services Ltd (ASX:GNG) is in full implementation, with key long-lead items ordered, FEED completed and the detailed engineering phase reaching 15% completion as of September 9.
Red Dust Holdings (RDH) has begun site bulk earthworks for the new aerodrome, tailings storage facility (TSF) and process plant infrastructure pads at Abra.
Full project development is advancing after Galena’s board made a Final Investment Decision (FID) in June following the satisfaction of key conditions to draw in excess of US$30 million under the Taurus Debt Facilities.