https://www.miningweekly.com

DRA Projects, Fraser Alexander reach settlement on Elikhulu project claims

26th July 2022

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

Font size: - +

Diversified global engineering, project delivery and operations management group DRA Global’s subsidiary DRA Projects and mining services company Fraser Alexander have reached a settlement in respect of all claims between the parties, prior to the start of an arbitration hearing related to the Elikhulu gold tailings retreatment project.

DRA Projects had appointed Fraser Alexander as a subcontractor on the project.

Fraser Alexander in May 2021 initiated arbitration proceedings against DRA Projects, seeking R502-million in claims for works executed, an extension of time, preliminary charges, disruption and escalation.

Under the terms of the settlement, DRA Projects has agreed to pay Fraser Alexander R118-million.

DRA Global says the settlement is a favourable outcome for DRA as it settles a material claim, reduces litigation risk and avoids a costly arbitration process with an uncertain outcome.

DRA Global had recorded a provision of R153-million in its full-year 2021 financial statements in respect of the anticipated claims.

The group notes that the settlement does not impact Fraser Alexander’s contractual liability for latent defects.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION