(Alliance News) - Anglo-Australian miner Rio Tinto PLC on Friday said it will take part in and underwrite a fundraise by investee Energy Resources of Australia Ltd.
ERA, which is listed in Sydney, is looking to clean up and close the Ranger uranium project area in the Northern Territory of Australia. Rio Tinto owns a 68% stake in ERA.
ERA has been looking to raise AUD476 million, or USD323.4 million, to go towards the plan, but the firm has been unable to secure third-party underwriting support, so Rio Tinto will step in to "ensure ERA has the funds it needs".
Darwin-based ERA said in a statement Rio Tinto will be taking up its 68% entitlement "in full".
Bold Baatar, Rio Tinto's head of Energy & Minerals, said: "We take mine closure very seriously and ensuring ERA is able to fund the closure and rehabilitation of the Ranger project area, through participating in this entitlement offer, is a priority.
"We have committed to supporting this offer with the objective of ensuring ERA is in a position to rehabilitate Ranger to a standard that will establish an environment similar to the adjacent Kakadu national park."
ERA has to end mining and processing at the Ranger project by January 2021, and completely clean-up the site within five years of that date. Ranger is situated within the Kakadu national park, some 260 kilometres south-east of Darwin, the capital of the Northern Territory.
By George Collard; georgecollard@alliancenews.com
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Rio Tinto (RIO)
