Arbitrator delivers mixed outcome in DRA, LMDC contract dispute
JSE- and ASX-listed mining consultancy DRA Global has advised of a mixed outcome from an arbitration process between itself and Liqhobong Mining Development Company (LMDC) in disputes over a contract.
Notably, the final award, handed down by arbitrator Advocate Michael Kuper, determined that DRA was not grossly negligent.
DRA had entered into an engineering, procurement and construction management contract for the expansion of the Liqhobong mine, in Lesotho, in June 2014.
The mining consultancy later started arbitration proceedings against LMDC for unpaid invoices and incentive scheme payments, for which an arbitration hearing was already concluded by July 2021.
DRA first expected the award to be handed down during the second quarter of 2021.
LMDC, meanwhile, counterclaimed citing gross negligence based on a failure by DRA to consider alternative designs, which DRA was absolved of in the final award.
DRA originally filed three claims totalling R68-million, or $6.2-million, while LMDC filed six counterclaims totalling R289-million, or $26.3-million.
Two of the DRA’s claims and three of LMDC’s counterclaims were dismissed in the final award.
The remaining claim awarded to DRA amounts to R1.76-million, or $160 405, plus interest and costs, and the remaining counterclaim awarded to LMDC amounts to R31.2-million, or $2.85-million, plus interest and costs.
DRA says it did not make provision for an award in favour of LMDC and, therefore, the net amount payable to LMDC will be reflected in the profit and loss results details for the current financial year.
Comments
Research Reports
Projects
Latest News
Showroom
South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...
VISIT SHOWROOM
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
