Rio to manage Ranger rehab project

Rio Tinto has announced it will manage rehabilitation of the Ranger uranium mine in the Northern Territory on behalf of subsidiary Energy Resources Australia, which counts Perth-based company Packer & Co as a 9.32 per cent minority shareholder.

The transitional project management period, set to begin immediately, is expected to last three months. 

Rio presently holds an 86.3 per cent stake in ERA and has worked closely overseeing clean up of the project with the company for many years. During this time, it has been required to navigate ERA board resignations and rehabiliation blowout costs.

At the forefront of the management services agreement between the parties is ensuring completion of the project in a safe manner that aligns with the Mirarr people, who are the traditional owners of the site, according to Rio Tinto Australia chief executive officer Kellie Parker.

These sentiments were echoed by ERA counterpart Brad Welsh.

“The ERA team has worked incredibly hard and made good progress rehabilitating Ranger," Mr Welsh said. 

“However, as the project moves into a new phase it will benefit from Rio Tinto’s global expertise in mine closure. We look forward to working with and supporting Rio Tinto on the safe and efficient delivery of this important project."

In its 2023 annual report released last month, the ERA listed a series of strategic priorities for the Ranger uranium mine, among them the execution of a rehabilitation scope of the project.

The company also said it would likely need additional funding later this year, via a material capital raise, to ensure the next phase of rehabiliation activities can be completed.

All mining and processing activities at Ranger finished in 2021 after four decades of operation. 

Rio last traded at $123.13 per share, up half a per cent, while ERA shares were at 5.8 cents per share as of 11.18am AWST.