ERA directors resign

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Image credit: ERA Twitter page

Just last week, Rio Tinto’s subsidiary, uranium miner Energy Resources of Australia (ERA) announced that it had decided to pull the plug on the Ranger 3 Deeps expansion due to unchanging market conditions and depressed uranium prices.

Image credit: ERA Twitter page
Image credit: ERA Twitter page

On Monday, ERA released another announcement, this time revealing that its Chairman and independent directors had tendered their resignations due to the latest developments regarding the Ranger 3 Deeps expansion project.

ERA’s Chairman, Mr Peter McMahon, and independent non-executive directors, Dr Helen Garnett and Dr David Smith, resigned as directors of the Company, with effect from Saturday 20 June 2015.

“Given the differing views on the future of the Ranger 3 Deeps project, it is difficult for ERA to pursue its stated approach without the support of its major shareholder, Rio Tinto,” the outgoing directors said.

They also noted that whilst the ERA Board had decided that the Ranger 3 Deeps project would not proceed to Final Feasibility Study at this time, the Board’s view was that an extension to the Ranger Authority would allow ERA to revisit the Ranger 3 Deeps project’s economics over time.

The search for replacement independent non-executive directors has already begun, ERA said in the announcement.

In the meantime, Andrea Sutton has been named interim Chair of the Board.

Energy Resources of Australia Ltd is one of the nation’s largest uranium producers and Australia’s longest continually operating uranium mine.