Rio-owned ERA flags Ranger cost blowout

The news: Rio Tinto-owned uranium miner Energy Resources of Australia has warned of a further cost blowout to clean up its Ranger uranium mine site in the Northern Territory.

The numbers: ERA, which finished processing uranium at the mine in 2021 and is due to complete the clean-up of the site by 2028, on Tuesday said it now expects total rehabilitation costs to "materially exceed" the previous range of $1.6billion to $2.2 billion, provided in February 2022. Rio owns a more than two-thirds stake in ERA.

The context: The Ranger mine, located 230 km east of Darwin, has long been controversial because it is surrounded by the world heritage-listed Kakadu National Park and has a history of environmental incidents. On Tuesday, ERA said a feasibility study due to complete this month has been delayed, because of which the company is unable to confirm the project schedule and total rehabilitation costs. It will now provide an update in October.