Rio Tinto takes full entitlement in ERA rights issue, securing 98% ownership
Diversified miner Rio Tinto has taken up its full entitlement in the recent rights issue by Energy Resources of Australia (ERA), increasing its shareholding in the company to more than 98%.
This follows ERA’s successful capital raise of A$766.5-million to fund rehabilitation efforts at the Ranger uranium mine in the Northern Territory, which ceased operations in 2021.
As part of the rights issue and shortfall bookbuild, Rio Tinto's participation, combined with other ERA shareholders, has resulted in the mining giant now holding a dominant stake in the company.
Rio Tinto has confirmed that, in line with its earlier statements, it intends to proceed with the compulsory acquisition of the remaining ERA shares it does not already own. The purchase price will be set at A$0.002 a share – matching the price of the rights issue.
“We remain committed to the successful rehabilitation of the Ranger project area to a standard that will establish an environment similar to the adjacent Kakadu National Park, a World Heritage site,” said Rio Tinto CEO for Australia, Kellie Parker.
The Ranger mine has been a source of uranium for many years. However, with mining operations now concluded, the focus has shifted to the complex task of environmental remediation.
ERA also 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.
Rio Tinto stressed that it had no intention to invest in mining or developing the Jabiluka deposit.
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