With the company struggling to cover costs to rehabilitate the Ranger uranium mine, Energy Resources of Australia (ERA) has been granted access to $56.8 million from its security bond held by the Federal Government.
ERA said in an announcement to the ASX that it had been approved for an interim payment from the Ranger Rehabilitation Trust Fund, which holds $537 million.
“The interim drawdown amount is $56.8 million and ERA expects to receive these funds in November 2022,” the company said in the announcement. “After drawdown, the sum of $481 million will remain in the Ranger Rehabilitation Trust Fund.”
ERA has been struggling to raise funds for the rehabilitation of Ranger, located in the World Heritage-listed Kakadu national park in the Northern Territory. It is estimated the rehabilitation of Ranger, which was shuttered in 2021 after 40 years of operation, will cost up to $2.2 billion.
News of the drawdown from the Ranger Rehabilitation Trust Fund comes after a tumultuous period in early October in which ERA was engaged in a stand-off with its majority shareholder Rio Tinto over the possibility of further mining at the neighbouring Jabiluka uranium deposit.
Rio has been clear that it will not support any further mining at the deposits.
The situation ultimately led to changes on the ERA board and Rio Tinto agreeing to loan $100 million to ERA to help cover clean-up costs.
“We are committed to working with ERA to facilitate this board renewal process and urgently develop a workable plan to fund the increased rehabilitation costs,” Rio Tinto chief executive Australia, Kellie Parker, said at the time.
“We restate our belief that the successful rehabilitation of the Ranger Project Area, which is of critical importance to the Mirarr People, Rio Tinto and ERA, can be achieved in a way that is consistent with the Mirarr People’s wishes. This remains our utmost priority and commitment.”
The Federal Government had also previously said it would extend the deadline for ERA to rehabilitate the Ranger site from 2026 to 2028.