Rio Tinto to directly manage ERA’s Ranger rehabilitation
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The news: Mining giant Rio Tinto will directly manage the clean up of the Ranger uranium mine site in the Northern Territory on behalf of subsidiary Energy Resources of Australia (ERA) following cost blowouts.
The numbers: Rio has signed a new management services agreement with ERA — in which it holds 86.3% stake — for the Ranger Rehabilitation Project. ERA has previously outlined spending of $1.2 billion on rehabilitation activities until end-2027, with total rehabilitation costs set to exceed $2.4 billion.
ERA said on Wednesday the agreement would be implemented in the current quarter, with the transition period expected to take two to three months.
The context: ERA noted that directly leveraging Rio Tinto's mine rehabilitation, project management experience and capability to support the safe and efficient delivery of the project would result in significant value and potential cost savings for the company.
The company finished processing uranium at the mine in 2021 and is due to complete the clean-up of the site by 2028. The Ranger mine, located 230km 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.
The source: ASX announcement
