Lead and silver producer Galena Mining calls in KordaMentha as administrators for operating subsidiary Abra

About 300 jobs are hanging in the balance as administrators from KordaMentha work to rescue the key subsidiary of Galena Mining. Galena’s Abra Mining business on Friday became the latest resources company to run aground, with the group owing about $160 million to an international lender. The West Perth-based business operates the Abra lead and silver mine in the State’s Mid West, between Newman and Meekatharra. Galena owns 60 per cent of Abra Mining. Japan’s Toho Zinc owns the remainder through CBH Resources. KordaMentha’s Richard Tucker and Robert Hutson will keep operating the mine and it’s believed Galena is keen to recapitalise the business. Galena chair Adrian Byass was optimistic the company will fight on. “This business will continue. The mine will continue,” Mr Byass told The West Australian on Friday. “There is support there for that to happen. “Our hope is that we can be the vehicle to bring this asset back to the listed space.” Severe rainfall in February and March also disrupted operations at the mine. That shut the key access road from 6 March, stopping exports. Mr Byass agreed the rain had compounded problems but said the company had already been vulnerable because the mine — which shipped first concentrate in early 2023 — had not performed during ramp up as predicted. “Our employees have worked hard,” Mr Byass said. “We just didn’t get to where we needed to be fast enough.” ASX-listed Galena had been in a trade suspension since January amid a strategic review to run the ruler over a potential capital raising or restructure. The demise of Abra follows the collapses of nickel producer Panoramic Resources and Australian Potash late last year. A series of critical minerals mines were also shut due to low prices, while Alcoa’s Kwinana alumina refinery will be mothballed. Galena’s most recent quarterly results showed $43m in revenue. The company was bleeding cash despite a prepayment from offtake partner, Toho. The cash balance dropped by $10m across the quarter to fall under $4m. The miner owed $161m through a facility with Taurus Mining Finance Fund 2, as at the end of December. A final investment decision on the Abra mine was made in June 2021.