Rio Tinto has taken a commanding position in Energy Resources of Australia (ERA), holding over 98 per cent of the company’s shares following the conclusion of ERA’s entitlement offer and shortfall bookbuild.
The capital raising effort generated $766.5 million before costs, which will be used for the planned rehabilitation of the Ranger project area in the Northern Territory.
Rio Tinto is taking up its pro rata entitlements, significantly increasing its stake in ERA.
Rio Tinto chief executive officer Australia Kellie Parker echoed the company’s dedication to the environmental restoration of the Ranger project area.
“We remain committed to the successful rehabilitation of the Ranger project area to a standard that will establish an environment similar to the adjacent Kakadu National Park, a world heritage site,” Parker said.
“Our utmost priority and commitment is to complete this important rehabilitation project in a way that is consistent with the wishes of the Mirarr People.”
Rio Tinto said it intends to proceed with the compulsory acquisition of the remaining ERA shares under Part 6A.2 of the Corporations Act 2001.
The acquisition price will be $0.002 per share, consistent with the entitlement offer price.
“Proceeding with compulsory acquisition, after participating for our full entitlement in the ERA capital raising, underlines our commitment to Ranger’s rehabilitation,” Parker said.
Rio confirmed it has no plans to develop the nearby Jabiluka deposit after completing the acquisition.
ERA has managed uranium mining operations at the Ranger project area in the Northern Territory since 1980, with production ceasing in January 2021.
The rehabilitation of the site, located within the Kakadu National Park, is estimated to cost $2.2 billion and is expected to be completed by 2028.