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European Metals Holdings enlists help of DRA Global for Cinovec lithium DFS

Energy minerals, Mineral project development, Mining services, Sustainable mining, , , , , , , ,

European Metals Holdings has appointed DRA Global to complete the definitive feasibility study (DFS) for the Cinovec lithium project in the Czech Republic.

DRA, European Metals says, has the necessary capacity, expertise and track record to deliver the Cinovec DFS in a timely and efficient manner and will be working to build on all the optimisation work the Cinovec team completed over the course of 2022 with a view to completion of the study in the December quarter of 2023.

DRA’s appointment for this piece of project development work is testament to both the company’s and its joint-venture partner CEZ s.a.’s commitment to, and the tremendous prospectivity and value of, the Cinovec project, EMH said. The Cinovec project’s in-house team will work closely with DRA to develop and finalise the DFS.

Executive Chairman, Keith Coughlan, said: “We are pleased to have secured a company of DRA’s calibre, with a proven track record of delivering critical pieces of work like the Cinovec DFS in a timely and efficient manner.

“We will be working closely with DRA over the coming period, and we are excited by the positive outcomes that this DFS will provide. It is not expected that this will delay the critical path of the project, as during this time the company will be in the process of finalising permitting, offtake and project finance matters.

“European Metals is well positioned for the rising demand in battery materials, developing the Cinovec project, the largest hard-rock lithium project in the European Union, which is centrally located on the Czech Republic’s border with Germany. The project possesses excellent ESG credentials, which will enable the production of battery-grade lithium hydroxide and carbonate with potentially one of the lowest CO2 emissions, globally.”

James Smith, CEO of DRA Global, said: “We are proud to be working with EMH on the DFS for the impressive Cinovec project. Our experience in lithium spans the Australian, African and Americas markets. We are excited to share this knowledge with EMH to deliver the best results for their project.”

Cinovec is owned 49% by EMH and 51% by CEZ. A prefeasibility study on the project in January 2022 outlined annual battery-grade LiOH.H2O production of 29,386 t/y. This was based on extracting ore from an underground mine operating at 2.25 Mt/y with paste backfill.

DRA Global offloads G&S to KAEFER Integrated Services

Mining mergers and acquisitions, Mining services, , , , , , , , , ,

DRA Global and KAEFER Integrated Services have executed an agreement for the sale and purchase of the business of G&S Engineering Services Pty Ltd and G&S Support Services Pty Ltd (collectively G&S), comprising selected contracts, assets and liabilities for A$8 million ($5.6 million).

The sale is subject to conditions precedent standard for a transaction of this nature and is currently expected to complete before the end of the September quarter of 2022.

G&S, based in Mackay, Queensland, has a 25-year track record of delivering services to the Australian resources sector, with a focus on maintenance and shutdown services and structural mechanical piping (SMP) construction services.

KAEFER Integrated Services is a provider of technical industrial services specialising in insulation, access, surface protection, passive fire protection, as well as mechanical services.

DRA Interim Chief Executive Officer, James Smith, said: “DRA has been undertaking a strategic review of its business, to ensure that we re-focus on our core strengths of engineering, project delivery and operations management. G&S, with its focus on operational maintenance, SMP construction and shutdown services, is not part of this core focus.

“We believe the G&S business will be best served under the ownership of KAEFER, where it can benefit from having an owner that is strategically aligned to providing the required investment and management focus.”

The sale comprises certain key contracts, assets and liabilities of G&S. Importantly, the new owner, KAEFER, is committed to building on G&S’ work program and connection with clients and suppliers and maintaining a strong workforce, DRA says.

DRA previously announced the cessation of its APAC construction business, with G&S currently seen as loss-making, as a result of some poorly performing construction projects. As a result, it is no longer considered a core part of DRA’s activities.

For the financial year ended December 31, 2021, G&S contributed approximately 20.1% of group revenue, EBITDA and profit contributions were negative, and accounted for approximately 10% of Group assets. Those proportions have since decreased.

The re-focus of DRA’s APAC business on engineering, project delivery and operations management requires a restructure to optimise these operations, the company says. Further, the group is finalising the outcomes of its previously announced operating model review which is also expected to optimise the group’s corporate overhead structure.