08/08/2014 - 09:33

DRA, Orelogy partner up after Forge buy

08/08/2014 - 09:33

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South African engineering firm DRA has partnered with Perth mine planning consultancy Orelogy, one week after buying collapsed Forge Group’s North American asset, Taggart Global.

DRA, Orelogy partner up after Forge buy

South African engineering firm DRA has partnered with Perth mine planning consultancy Orelogy, one week after buying collapsed Forge Group’s North American asset, Taggart Global.

DRA mining managing director Neale Goddard said the partnership with Orelogy would enhance both companies’ service offerings and market share within the Australasian mining industry.

“There are over 400 projects in the African market that are owned by Australian-based mining companies,” he said.

“DRA is an expert in delivering African projects but we don’t have strong relationships with the Australian market. Orelogy brings this to the table with their impressive reputation and client base in Perth.”

Orelogy managing director Steve Craig said DRA’s African experience and critical mass would give it the opportunity to extend its reach into the African market.

DRA bought Forge’s North American companies for an undisclosed amount late last month.

Forge originally acquired Taggart Global for $43 million in July 2013, therafter managing and accounting for it as a standalone division.

Taggart was formerly known as Sedgman USA and was founded in 1993.

DRA Group chief executive Paul Thomson said the strategic deal would allow the private South African company to expand on its existing North American business, predominantly in Canada.

DRA’s North American operations will be consolidated with Taggart and be called DRA Taggart.

Mr Thomson said the acquisition occurred with full support of Taggart’s management.

“The existing Taggart management group will remain with the company, and will share an equity stake in the newly formed DRA Taggart business,” he said.

“Taggart has an excellent reputation in the global coal preparation and clean coal technology markets, and has expanded its skill set into the power sector, ports and terminals, bio fuels, mineral sands, as well as the mining and aggregate industries. 

“We are excited to partner with Taggart and accelerate their growth in the worldwide coal preparation and material handling markets.’’

DRA Taggart chief executive Richard McCormick said Taggart’s integration into DRA provided it with a global platform to serve its existing client base and pursue opportunities worldwide.

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