The deal, which was three years in the making, makes DRA and Minopex fully compliant with present and anticipated empowerment legislation.
DRA director Brian Dowding says that Shan-duka Resources, which has a strong mining portfolio with investments in the coal, gold, diamonds and steel-related sectors, was the right partner and will help the service organisation to capitalise on BEE potential throughout the African continent.
“This empowerment deal extends beyond South African borders and will cover all projects elsewhere in Africa as well – we are now ready to embark on an African adventure together.” Commenting on the groundbreaking empower-ment deal, Shanduka group executive chairperson Cyril Ramaphosa, a former politician and trade unionist, lauded DRA’s approach to transformation.
“We, at Shanduka, have been very impressed with DRA’s disposition towards broad-based BEE. DRA does not, like many other com-panies, regard BEE as a box-ticking exercise and thus fits in perfectly with our strategy to invest in opportunities where the group can gain significant value-adding capacity.” Ramaphosa said that the deal with DRA and Minopex starts at equity level but will eventually play out at a skills level as well.
“All the parties have exhibited commitment to wholesale transformation, but in the process we are equally committed to making bundles of money for our shareholders,” Ramaphosa quipped.
The BEE transaction, valued at just under R100-million, was partly financed through vendor financing and partly through equity and a mezzanine-financing firm, Makalani (R26,35-million). Shanduka Resources and DRA will set an additional 5% of the equity aside towards an employee share trust.
Established in 1984, DRA has grown to international status with plants operational on five continents and offices in Australia and Canada.
In South Africa, DRA employs 500 people and lists in its portfolio of managed projects all major mining companies and most of the junior players as well.
Largely an ‘engineering-centric company’, DRA has expertise in engineering design, mine planning and design, project and construction management, process, mechanical and winder engineering, electrical and instrumentation engineering as well as specialised electrical engineering consulting services.
The notional value of the projects under-taken by DRA during 2005 was some R1,5-billion, with over 800 000 work hourssold. In one of its latest endeavours, DRA Mineral Projects has been appointed as the engineering, procurement, and construction-management (EPCM) contractor for the new UG2 concentrator at Mototolo Platinum on the Eastern Limb of the Bush-veld Complex.
The 50:50 joint venture, formed by Anglo Platinum and Xstrata Alloys, anticipates first production by the end of the year.
Production is expected to be 132 000 oz of platinum and 82 000 oz of palladium a year, with full production scheduled for the third quarter of 2007.
Minopex, which was established in 1996, operates plants in the coal, diamond, platinum and chromium sectors. It has an impressive projects CV and operates the coal-processing plant of the Sebuku coal project in Indonesia (for PT BCS); the coal-processing plants at the Forzando and Dorstfontein coal-mines, in Mpumalanga (for Total Coal); the Dwarsrivier chrome-processing plant, in the Steelpoort valley (for Assmang); the PGM concentrators at Kroondal and Marikana platinum-mines, in the Rustenburg area; the Everest concentrator, on the Eastern Limb of the