The Australian Government has declined Energy Resources of Australia’s (ASX:ERA) application for a 10 year lease renewal on the Jabiluka Uranium Mine in the Northern Territory.
Energy Resources, which has a market capitalisation of $753 million and is majority owned by Rio Tinto (ASX:RIO), held the lease for 42 years.
The government says the mineral lease relates to a prescribed substance and there are strict regulatory requirements in place. All proper processes have been followed by the Territory and federal governments to come to this decision.
NT Minister for Mining Mark Monaghan says “we have gone through a thorough process to ensure that all stakeholders’ views have been considered in this decision.”
Energy Resources says it is disappointed with the decision and is assessing the options available.
In May this year, the Northern Territory Government announced that a reserved land area would prevent any future applicants being granted over the Jabiluka area once the lease ceases.
The reserved land area will come into effect at the cessation of mineral lease, due to expire on 11 August 2024, meaning while this area is in place applications for a grant of any mineral title will not be allowed.
In 1977, the federal government decided to allow mining and export of Australian uranium and approved the development of the Jabiluka uranium deposit.
Energy Resources of Australia is focused on sustainable rehabilitation of former mine assets. The company is currently focused on the Ranger Project area, which is Australia’s largest continuous uranium mine.
The company has been one of the nation’s largest uranium producers and operated Australia’s longest continually producing uranium mine.
On 3 April 2024, Rio entered into a Management Services Agreement (MSA) with ERA to manage the Ranger Rehabilitation Project. The MSA will build on ERA’s existing rehabilitation work with Rio’s technical expertise in designing, scoping and executing closure projects, including stakeholder and delivery partner relationships.
Write to Aaliyah Rogan at Mining.com.au
Images: Energy Resources of Australia
