ERA seeks to overturn uranium ban

Energy Resources of Australia has begun proceedings in the Federal Court against in relation to the Northern Territory government’s decision not to renew the Jabiluka mineral lease.

ERA, a subsidiary of Rio Tinto, was advised last month by the NT government – and told the market on July 26 the reason for the lease not being renewed was based on advice from the federal government.

This prompted Perth-based Packer & Co managing director Willy Packer, ERA’s biggest minority stakeholder at 9.32 per cent, to publicly voice his disappointment regarding the news, along with Western Australia’s present ban on uranium mining, which has been in effect since 2017.

Three days later, Brad Welsh-led ERA confirmed it had received a non-binding indicative offer of $550 million for the Jabiluka mineral lease from Boss Energy, following preliminary discussions, however this proposal was subsequently withdrawn following the NT government’s announcement.

ERA’s proceedings to seek a judicial review of the decision will be against the Commonwealth of Australia, federal minister for resources and northern Australia Madeleine King, NT minister for mining, agribusiness and fisheries Mark Monaghan, along with the NT and Jabiluka Aboriginal Land Trust.

The uranium producer, which has a market cap of $321.15 million, said it would also push for an interlocutory injunction into the matter – and for this to be heard on an “urgent basis” given the lease is due to expire on Sunday.

“ERA considers that its applications are warranted after taking into account the circumstances in which the renewal decision was made,” the company said.

Acting on behalf of the company will be a three-man independent board committee, which includes director Ken Wyatt. 

ERA shares last changed hands at 1.5 cents.