Rio Tinto to take control of ERA for Ranger rehabilitation
The Takeovers Panel has upheld its decision to dismiss objections from minority shareholders of Energy Resources of Australia (ERA), allowing Rio Tinto to gain full control of the company through an entitlement offer.
The panel rejected calls for a declaration of “unacceptable circumstances” regarding Rio Tinto’s discounted A$880 million offer – announced in August – asserting that the proposed equity raise is the “only viable option available in the circumstances”.
Rio Tinto's offer aims to support ERA in funding the rehabilitation of the now-defunct Ranger mine. The company has warned that ERA risks breaching its minimum cash reserve of about A$50-million in the fourth quarter, with cash resources projected to be depleted by the end of this year or early 2025.
Concerns have been raised by minority shareholders regarding the discounted nature of the entitlement offer and that it would elevate Rio Tinto's stake in ERA from 86.3% to 99.25% if other shareholders choose not to participate.
The capital raised through this process is intended to fund rehabilitation efforts at the Ranger uranium mine in the Northern Territory, which ceased operations in 2021.
In addition to the Ranger project, ERA owns the Jabiluka project; however, its mining permit was cancelled earlier this year as part of plans to integrate the area into Kakadu National Park. While Rio Tinto has publicly committed to opposing mining activities at Jabiluka, ERA is currently pursuing legal action regarding this matter, with a trial date set for late October
Comments
Research Reports
Projects
Latest News
Showroom
FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...
VISIT SHOWROOM
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
