NT govt declines renewal of ERA's Jabiluka lease
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More news: The Northern Territory government has not renewed Energy Resources of Australia's (ERA) company's lease renewal application for its Jabiluka development, based on advice from the federal government.
ERA said it is "disappointed with the decision and assessing the options available".
ERA enters trading halt on pending Jabiluka lease decision
The news: Energy Resources of Australia (ERA) has entered a trading halt on the ASX, pending an update in relation to the company's lease renewal application for its Jabiluka development in the Northern Territory.
The numbers: ERA shares were up 2.9% to $0.035 by 1:20pm, at the time of the trading halt announcement.
The context: In March, ERA applied to renew its lease on the deposit which is surrounded by Kakadu National Park — a move opposed by Indigenous leaders. ERA claimed that extending the lease was "the best way to protect Jabiluka's cultural heritage" as it had no development plans for the deposit.
In May, ERA shareholder Zentree Investments filed an application with the Australian Government Takeovers Panel over concerns regarding a future equity raise that could see Rio Tinto acquiring ERA.
The application by the Singaporean family office also requested that ERA initiate the sale process for the Jabiluka mining lease. The Jabiluka uranium deposits, once set for mining development, have been under rehabilitation since 2003 without any uranium extraction.
However, last month the Takeovers Panel declined to conduct proceedings on Zentree's application.
The sources: ASX announcement, ASX announcement
