Response to Energy Resources of Australia’s independent valuation report

Rio Tinto notes Energy Resources of Australia’s (ERA) independent valuation report on the crucial Ranger mine rehabilitation project in the Northern Territory (NT).

In a statement, Rio Tinto said it acknowledges the Gundjeihmi Aboriginal Corporation’s statement from 28 September, outlining its views on the independent valuation report and how it failed to give due weight to the Traditional Owners, the Mirarr People, who have long opposed further uranium mining on their land. Rio Tinto is aware of the long-standing opposition the Mirarr People have to further mining development on their land.

Rio Tinto stated that it continues to support the project with technical assistance because it is dedicated to ensuring the rehabilitation is finished to a standard that will provide a setting similar to the nearby Kakadu National Park.

According to Rio Tinto, it has consistently been of the opinion that Ranger’s rehabilitation can be successfully completed in a manner that complies with the wishes of the Mirarr People, and it has made an effort to cooperate positively with ERA’s Independent Board Committee (IBC) in its search for a funding source to meet ERA’s rehabilitation obligations.

The conditions of any ERA finance solution should, in the opinion of Rio Tinto, reflect fair value with consideration for:

• the material costs and temporary finance requirements;
• the money generated will only be used for rehabilitation, not for any other type of development; and
• the Jabiluka uranium deposit has been repeatedly opposed by the Traditional Owners, the Mirarr People, in public.

When the ERA IBC could not win over a majority of shareholders for its planned offer terms in July 2022, Rio Tinto made an offer to subscribe for its entire pro rata entitlement at a price that represents Rio Tinto’s assessment of fair value. This deal to ERA is still valid.

According to Rio Tinto, the Grant Thornton independent value analysis, which the IBC used to help determine the price for a future entitlement offer, fails to adequately recognise the Mirarr People’s long-standing objection to additional uranium mining on their land. Rio Tinto is aware that this upsets the elders and people of the Mirarr.

Rio Tinto chief executive Australia Kellier Parker said having long recognised the Mirarr People’s resistance to more mining on their territory, Rio Tinto is actively working to reflect their views in how it approaches funding ERA’s rehabilitation commitment.

“We believe the successful rehabilitation of the Ranger Project Area, which is of critical importance to the Mirarr People, Rio Tinto and ERA can be achieved in a way that is consistent with the Mirarr People’s wishes. This remains our utmost priority and commitment,” Parker stated.

According to Parker, Rio Tinto is again requesting that the ERA IBC immediately create a feasible plan to pay for the higher rehabilitation expenditure.