Response to Energy Resources of Australia’s independent valuation report
September 29 2022 - 02:12AM
Business Wire
Rio Tinto notes the independent valuation report released by
Energy Resources of Australia (ERA) on 26 September 2022, to
determine a valuation of the company as it seeks to address
material cost and schedule overruns on the critical Ranger
rehabilitation project in Australia’s Northern Territory.
Rio Tinto understands the long-term opposition the Traditional
Owners, the Mirarr People, have to further mining development on
their country and acknowledges the statement of the Gundjeihmi
Aboriginal Corporation on 28 September 2022 setting out their views
of the independent valuation report and its failure to give due
weight to their consistent and inter-generational opposition to
further uranium mining on their country.
Rio Tinto remains committed to ensuring the rehabilitation is
completed to a standard that will establish an environment similar
to the adjacent Kakadu National Park and continues to provide
technical support to the project. The company has always believed
that the rehabilitation of Ranger can be successfully achieved in a
way that is consistent with the wishes of the Mirarr People and
have sought to work constructively with ERA’s Independent Board
Committee (IBC) in its efforts to find a funding solution to meet
ERA’s rehabilitation obligations.
Rio Tinto’s consistent position is that the terms of any ERA
funding solution should reflect fair value having regard to:
- the material cost overruns and interim funding
requirements;
- funds raised will be dedicated strictly to rehabilitation and
not any future development; and
- the Traditional Owners, the Mirarr People’s consistently
publicly stated opposition to developing the Jabiluka uranium
deposit.
In July 2022, when the ERA IBC failed to obtain major
shareholder support for its proposed offer terms, Rio Tinto offered
to subscribe for its full pro-rata entitlement at an offer price
that reflects Rio Tinto’s view of fair value. This offer to ERA
remains.
In Rio Tinto’s view, the independent valuation report prepared
by Grant Thornton and adopted by the IBC to help set the price for
a future entitlement offer, fails to appropriately recognise the
long-standing opposition of the Mirarr People to further uranium
mining on their country. Rio Tinto understands that this causes
distress for the Mirarr elders and community.
Rio Tinto chief executive Australia Kellie Parker said “We are
actively seeking to reflect the wishes of the Mirarr People in our
approach to the funding of ERA’s rehabilitation commitment having
long understood their opposition to further mining on their
country.
“We believe the successful rehabilitation of the Ranger Project
Area, which is of critical importance to the Mirarr People, Rio
Tinto and ERA can be achieved in a way that is consistent with the
Mirarr People’s wishes. This remains our utmost priority and
commitment.
“We are again asking the ERA IBC to urgently develop a workable
plan to fund the increased rehabilitation costs.”
This announcement is authorised for release to the market by
Steve Allen, Rio Tinto’s Group Company Secretary.
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