- Energy Resources Australia has announced Rio Tinto has agreed to fund the rehabilitating of the Ranger Project Area
- After 38 years the mine will close in January 2021 due to its traditional Aboriginal owners
- Rio Tinto will subscribe for 68.4 per cent entitlement of new shares
- Rio Tinto will also underwrite the balance of a renounceable entitlement offer
Energy Resources Australia (ERA) has announced Rio Tinto has agreed to fund the rehabilitating of the Ranger Project Area.
After 38 years the mine will close in January 2021 due to its traditional Aboriginal owners rejected to continue the mine in 2015.
The cleanup of the mine will cost approximately $799 million. Currently ERA has $349 million in the bank and $76 million held by the federal government as part of a cleanup trust.
Rio Tinto has suggested it would subscribe for 68.4 per cent entitlement of new shares, which is the same percentage of ERA that it owns.
Rio Tinto will also underwrite the balance of a renounceable entitlement offer (with terms to be agreed) if an alternative underwriting solution is not available to ERA.
ERA is considering the size, structure and terms of any potential renounceable entitlement offer that is offered.
Energy Resources is one of Australia’s largest uranium producers and owns Australia’s longest continually operating uranium mine.
The Ranger mine is located 230km east of Darwin and is surrounded by Kakadu National Park and has been subject to protests for decades.
Its traditional owners, the Mirarr people believe the federal government imposed on them against their will. The mine produced 200 spills and licence violations since 1979.
The Mine has produced 128,000 tonnes of uranium oxide for nuclear power plants around the southern hemisphere since opening in 1981.