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Cashing in on Africa’s infrastructure gap

DRA prides itself on providing a ‘pit-to-port’ engineering solution – a vision that the infrastructure division taps into

DRA prides itself on providing a ‘pit-to-port’ engineering solution – a vision that the infrastructure division taps into

12th December 2014

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

  

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With billions set to be spent on infrastructure in Africa over the next several decades, a new opportunity is emerging for DRA’s infrastructure division in projects outside its traditional focus of mining.

DRA Infrastructure, which offers infrastructure, structural and civil engineering design services, is increasingly eyeing projects in oil and gas, renewable energy and other electricity infrastructure as additions to its offering.

“Our strategy is to expand and to increase our turnover, so we will be spending more time getting involved in bigger, independent projects that may not be mining related,” says DRA’s director responsible for its infrastructure business, Graham Smith.

Developing nations in Africa are popular locations for the use of renewable-energy technologies, such as solar power, wind power, hydropower and geothermal energy. The International Energy Agency estimates that almost half of Africa’s electricity generation growth to 2040 will be coming from renewable energy.

“Renewable energy is going to be very big in Africa,” Smith says during a Mining Weekly interview where he highlights some of the areas the division is aiming to tap into.

DRA Infrastructure has already executed projects in hydropower. In the Democratic Republic of Congo, the group was involved in the design and construction of two multimillion-dollar hydropower plants, including forebays, inlet canals, intake works, penstocks and discharge canals.

DRA is also scouting for infrastructure work in the oil and gas sector, as recent discoveries of reserves in East Africa promise to be a catalyst for major processing, storing and transport infrastructure.

Other opportunities lie in the underdeveloped areas of African nations that are opening up for new mining investments, with governments, backed by international funders, putting in place roads, railway lines, ports and electricity infrastructure in the hopes of attracting new investors.

New mining areas also require social infrastructure. “If you are sending a team of people into the bush to develop a mine, we are able to provide all the required infrastructure, from accommodation, shopping facilities and warehouses, to change houses, kitchens and medical facilities,” Smith says.

DRA prides itself on providing a “pit-to-port” engineering solution and the infrastructure division taps into this vision. “Everything that you can think of that is not mining, but what people need, that is what we provide,” Smith explains, pointing to projects, such as designing villages, schools, community centres, housing, bridges and major water supply systems spring to mind.

Competitive Market
Recognised as the next frontier for infrastructure, along with South America, competition for infrastructure work in Africa is increasing. Smith explains that major competitors are teaming up with South African companies in an effort to expand their business in Africa.

However, Chinese companies, which are “moving into Africa in a big way” are considered to be DRA’s biggest threat to securing large infrastructure projects.

DRA, which has offices in many parts of Africa, does the majority of its infrastructure work from its South African head office, although the group does partner with local companies in different countries.

Smith says DRA Infrastructure has established relationships with firms that are already in Africa. “We have done quite a bit of work in Mozambique and we are busy in other countries on the same principles.”

Current Projects
DRA Infrastructure has an extensive portfolio of projects and is involved in about 80 projects.

The division has done the entire surface infrastructure for the Eland platinum mine project, near Brits in the North West province, for Glencore. The contract was awarded in 2009 and completed in 2013. DRA has subsequently been awarded ongoing work at the Eland project.

In Mozambique, DRA Infrastructure has won work from Vale for the Moatize expansion project, in the Tete province. The division has completed design work for the R5-billion infrastructure component of the Moatize expansion project and is currently providing technical input.

Other projects include a 60 km access road for the Mkuju River uranium project for Uranium One, in Tanzania, and a 700-house township development for the Ngezi platinum mine project, in Zimbabwe.

The group has also secured an infrastructure contract in the automotive industry. Nissan has contracted DRA Infrastructure for design and planning work on its factory in Brits.

The 2013 acquisition of Walker Ahier Holtzhausen (WAH) has significantly increased DRA’s civil and structural capabilities in large infrastructure projects outside the mining industry. For instance, WAH has the capability to design major bridges and multistorey buildings, in addition to its specialist steel and concrete expertise in deep-level mining applications.

Some of WAH’s main projects include the design of the shaft for Ivanhoe Mines’ new platinum mine in South Africa, surface buildings for Swakop Uranium’s new Husab mine, in Namibia, and collaborating with DRA on work for Eskom’s Duvha power station.

WAH is also auditing the structural steel portion of the new Medupi and Kusile coal-fired power stations and auditing structural steel on certain portions of the Gautrain.

Edited by Creamer Media Reporter

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