Rio Tinto has announced it will support Energy Resources of Australia Ltd’s (ERA) Interim Entitlement Offer (IEO) to raise up to A$369 million for the Ranger Rehabilitation Project.
Rio Tinto, which holds 86.3% of ERA’s shares, has pre-committed to pay A$319 million to subscribe for its full entitlements under the conditions of the IEO.
“We are committed to ensuring the critical rehabilitation of Ranger is completed to a standard that will establish an environment similar to the adjacent Kakadu National Park,” Rio Tinto Chief Executive Australia Kellie Parker said.
Rio Tinto notes that ERA acknowledged, in the IEO paper, the Mirarr People‘s opposition to future uranium mining on their land. Rio Tinto’s recent decision to no longer declare the Jabiluka deposit as a mineral resource was influenced by this. Rio Tinto further recognises that the Mirarr People’s ongoing participation in and support of the Ranger Rehabilitation Project is crucial to its timely completion and success.
According to ERA, the IEO funds are not expected to create any financial return and will be used solely for the Ranger Rehabilitation Project and the repayment of the credit facility.
The funds acquired through the IEO will be utilised to repay a A$100 million credit facility extended by Rio Tinto to help ERA address its immediate liquidity issues.
