ESG, News, Rio Tinto, Uranium

Rio Tinto steps in for Ranger rehabilitation

Energy Resources of Australia (ERA) has been granted access to $56.8 million from its security bond held by the Federal Government.

Energy Resources of Australia (ERA) intends to raise $369 million through an interim entitlement offer (IEO) for the Ranger rehabilitation project in the NT.

Rio Tinto, which owns an 86.3 per cent stake in ERA, has pre-committed $319 million in accordance with its entitlements under the IEO.

With this latest funding, the long-anticipated Ranger rehabilitation seems to be on track.

Ranger operated as a uranium mine for 40 years before the windows were boarded up in 2021.

The liability is significant considering the radioactive material, as well as the sites location inside the World-Heritage-listed Kakadu National Park.

ERA will need to incorporate the site back into the surrounding Kakadu National Park, and ensure the radioactive tailings remain safe for at least 10,000 years.

In September, the Federal Government announced it had secured the ongoing rehabilitation of the Ranger mine and the site’s eventual return to the Mirarr Traditional Owners.

Mine operator ERA, welcomed the bill at the time and affirmed its commitment to the rehabilitation efforts.

But neighbouring uranium deposits have raised questions about continued mining. ERA recently commissioned a report that said the nearby Jabiluka uranium assets would be valued at up to $1.2 billion. And while it acknowledged the Mirarr Traditional Owners’ long-standing opposition to the development of Jabiluka as a mining operation, the report indicated the resource retains “strategic value”.

Rio Tinto, however, has been resolute that it wants to prioritise the clean-up of Ranger and will not develop Jabiluka without the consent of the Mirarr Traditional Owners. Rio’s chief executive for Australia, Kellie Parker, said the company remained “totally committed to completing the rehab at Ranger to the correct environmental standards”.

The company has since made the decision to no longer report the Jabiluka deposit as a mineral resource.

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