ERA appoints Rio Tinto to manage the Ranger Rehabilitation Project

The MSA follows discussions and negotiations between Rio Tinto and ERA’s Independent Board Committee (IBC) in relation to a proposal to provide services and advice on the execution of the Project. The IBC sought and received a proposal from Rio Tinto, and carefully considered the potential MSA and whether it was in the best interests of ERA’s shareholders. The IBC concluded that there was significant value for ERA, and potential cost savings, in directly leveraging Rio Tinto’s mine rehabilitation, project management experience and capability to support the safe and efficient delivery of the Ranger Rehabilitation Project. Rio Tinto owns 86.3% of ERA’s shares.

The MSA is expected to be implemented in the 2nd quarter of 2024, with the transition period expected to take 2 to 3 months. Under the MSA, Rio Tinto will, on ERA’s behalf and in accordance with plans and budgets approved by the ERA Board, manage all aspects of the rehabilitation of Ranger, including project management and execution of all rehabilitation activities.

Implementation of the MSA will allow Rio Tinto to build on ERA’s work to date and combine this with Rio Tinto’s technical expertise in de-signing, scoping, and executing closure projects.

All Rio Tinto services will be provided at cost once the services commence. Rio Tinto has also agreed to provide free carry on some services, including the first 12 months of Rio Tinto Management team costs and access to internal technical expertise. The MSA requires Rio Tinto and ERA to seek to mitigate risks and minimise costs in alignment with ERA's obligations.

ERA will continue to directly manage its commitments in Jabiru, corporate and financial affairs, assets and governance, including the Jabiluka mineral lease renewal.

Rick Dennis, Chairman and Chairman of ERA’s Independent Board Committee, said “We are pleased to have appointed Rio Tinto to manage the Ranger Rehabilitation Project. The Ranger Rehabilitation Project is a complex and globally significant rehabilitation and after extensive consideration the IBC has concluded that there would be significant value for ERA in directly leveraging Rio Tinto’s mine rehabilitation, project management experience and capabilities.”

Brad Welsh, ERA Managing Director and CEO, said: “The ERA team has worked incredibly hard and made good progress rehabilitating Ranger. However, as the project moves into a new phase it will benefit from Rio Tinto’s global expertise in mine closure. We look forward to working with and supporting Rio Tinto on the safe and efficient delivery of this important project.”

Rio Tinto Chief Executive, Australia, Kellie Parker said, “With the signing of this agreement, we are pleased to be able to directly provide more closure and project delivery experience and know-how to this critical task. We look forward to working in partnership with the Mirarr Traditional Owners and other stakeholders to complete the project.”

Read the article online at: https://www.globalminingreview.com/mining/05042024/era-appoints-rio-tinto-to-manage-the-ranger-rehabilitation-project/