Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Rio Tinto ousts Australian uranium unit directors over contentious report

Published 10/02/2022, 05:57 PM
Updated 10/02/2022, 10:05 PM
© Reuters. FILE PHOTO: The Rio Tinto logo is displayed on a visitor's helmet at a borates mine in Boron, California, U.S., November 15, 2019. REUTERS/Patrick T. Fallon

© Reuters. FILE PHOTO: The Rio Tinto logo is displayed on a visitor's helmet at a borates mine in Boron, California, U.S., November 15, 2019. REUTERS/Patrick T. Fallon

By Tejaswi Marthi and Sonali Paul

(Reuters) -Rio Tinto on Monday ousted the chairman and two other board directors at its uranium unit, a key victory in a dispute over potential mining in Australia's Kakadu national park that had threatened its efforts to rebuild ties with indigenous groups.

Energy Resources of Australia (ERA) said on Monday that its chairman, Peter Mansell, and two other board committee members had agreed to step down after Rio called for Mansell's resignation.

ERA, 86% owned by Rio, has been looking to raise funds to help cover the estimated A$1.6 billion to A$2.2 billion ($1 billion-$1.4 billion) cost of cleaning up the tapped-out Ranger uranium mine in Australia's Northern Territory through a share sale.

Rio, however, was angered after an expert report last month commissioned by ERA suggested that indigenous groups may ease their opposition to further mining in the area.

The traditional owners, the Mirarr people, have been opposed to any further mining in the area including the nearby Jabiluka uranium deposit - a position that Rio has backed.

The issue is highly sensitive for Rio, which is trying to repair its ties with indigenous groups after destroying sacred rock shelters at Juukan Gorge in Western Australia in 2020 for an iron ore mine expansion.

"Our utmost priority and commitment is to the rehabilitation of the Ranger Project Area in a way that is consistent with the wishes of the Mirarr People," said Kellie Parker, Rio Tinto (NYSE:RIO) chief executive Australia.

"However, given our recent dealings with the Independent Board Committee and last week’s release of the Grant Thornton valuation report, we do not believe that can be achieved without renewal within ERA's board," she said.

© Reuters. FILE PHOTO: The Rio Tinto logo is displayed on a visitor's helmet at a borates mine in Boron, California, U.S., November 15, 2019. REUTERS/Patrick T. Fallon

Rio Tinto also said discussions to amend a A$100 million credit facility to assist ERA with immediate liquidity issues were progressing.

($1 = 1.5547 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.