As a result of Anglo Platinum's curtailed capital spend, the future project pipeline and workload for Vhumbanani Projects, a joint venture company set up between DRA and project house TWP to work on Anglo Platinum projects, has come to an end.

The company's ongoing concentrator projects have been ceded to the DRA Group and DRA MD Leon Uys says that they are on track for completion as planned.

The projects include the MIG mills at Bafokeng Rasimone Platinum Mine, the Amandelbult UG2 upgrade and A-frame project, the PPRust and Waterval retrofit MIG and UFG mills, and the 125 000 t/m Unki concentrator.

Furher, Uys says that first ore into the UG2 concentrator was achieved at the Pilanesberg platinum mine in March this year. He says that the DRA team is also confident of meeting the remaining milestone date of first ore to the Merensky concentrator, including commissioning of the delayed secondary mill and the dense-medium pre-concentration plant.

Uys says that the design and procurement for the Elands Phase 2 expansion project, as well as the expansion project at Two Rivers, are both progressing well and that the Mimosa and Ngezi platinum projects are entering the transition phase from construction completion to commissioning.

He says, "Even though DRA is established as a managing contractor in the platinum industry, we are also well positioned to manage projects in other minerals. Our company is currently managing a number of projects in the coal, chrome, iron ore, nickel and diamond industries.

"DRA's project solutions, augmented by our well engineered designs, are attractive to many clients in all fields of minerals processing, mining and infrastructure project development."

In this regard, DRA is currently working on the Nkomati nickel project - which is on schedule for completion in the last quarter of 2009 - and already substantial savings have been reported against the budget for the project.

The Tati nickel 10-million ton crushing and concentrator upgrade project, which includes a 1 700 t/h DMS pre-concentration project has also been completed.

Uys says that DRA is fortunate, particularly in light of the economic downturn, to be in contract negotiations that could lead to substantial coal and iron ore projects for implementation over the next two years. "DRA is well positioned to participate in the thermal and coking coal washing plant demand that is likely to result from Eskom's, and India's, increased power generation capacity," he says.

In collaboration with the DRA's sister company Minopex and backed by the company's track record, the DRA Group is able to offer BOO(T) solutions for small- to medium-sized coal mining companies. Further, Uys reports that the 2 000t/h Phola coal washing plant project for Anglo Coal is nearing construction completion and that commissioning has already started, with the first ore target set for the end of May.

The detail design of the 500t/h Dorstfontein coal washing plant for petrochemicals company Total is progressing well and Uys says that post tender for the implementation phase has been submitted. Also, the 2 000t/h Douglas Middelburg Optimisation coal washing plant for BHP Billiton is in peak construction at present and, on a recent site visit, a senior BHP delegation was favourably impressed with the visible display of safety and general project management standards.

In the past year, DRA's safety record features as one of the company's most important highlights. "A safety first in a zero harm approach ensures successful projects," he stresses. The company achieved more than 6,5-million lost-time injury (LTI) hours at its Khumani iron ore project, with more than 10-million hours worked on the project.

On the Vhumbanani PPRust North platinum project, over 8-million fatality-free hours were worked with only two LTI during a 19,5-month construction period. This project received two IRCA awards for safety excellence. DRA's overall safety performance records a current LTI frequency rate of less than 0,04.

Uys says that even though the DRA Group experienced its best financial performance ever in 2008, the economic slowdown will certainly have an impact on the company. "Although our staff use is currently at a peak, we can see that towards the end of the third quarter this will reduce. However, he says that the company has identified a number of opportunities in its fields of expertise and is focusing its attention on securing these opportunities for future growth.

"We have appointed a dedicated marketing director to manage the company's efforts in securing sufficient work to curb the effects of the downturn on company performance. In addition, internal financial controls have been sharpened to reduce spend and overheads."

In conclusion, Uys says that although it is clear that 2009 will make for a tough financial environment, there are indicators suggesting that the slowdown will soon bottom out. He adds that DRA is well positioned to take up opportunities arising from current and improved platinum prices, and demand for coal, uranium, phosphates and any other minerals process plants.

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