The Northern Territory (NT) government in Australia has rejected Rio Tinto subsidiary Energy Resources of Australia (ERA)’s request to renew its mining lease for the Jabiluka uranium project in the Northern Territory.
Located beneath the Kakadu National Park, the Jabiluka mineral lease (MLN1) holds a large and high-quality uranium ore body of global significance.
The Jabiluka mine sits alongside Energy Resources of Australia’s Ranger uranium mine. All mining operations and uranium processing at the Ranger project were winded down in 2021 in accordance with government legislation.
By declining to extend the lease of the Jabiluka uranium project, the government aims to commence the process of incorporating the site to the Kakadu National Park. This decision aligns with the requirements of the Mirarr Traditional Owners of the Jabiluka deposit.
Energy Resources of Australia had a long-term care and maintenance agreement with the Mirarr Traditional Owners that included a veto over development unless approved by the latter.
The Rio Tinto unit’s mineral lease for the Jabiluka site will end on 11 August 2024. The company held the licence of the Jabiluka site since 1991 but it has not developed a mine.
Minister for Resources and Northern Australia Madeleine King said: “ERA and their major shareholder, Rio Tinto, rightly committed to not developing the site without the support of the Mirarr Traditional Owners, who are completely opposed to the renewal of the lease.
“I have met with all significant stakeholders in the Jabiluka Mineral Lease. This decision provides clarity and certainty to all parties.”
In a separate announcement, Energy Resources of Australia confirmed that it received a non-binding indicative offer from Boss Energy to buy MLN1 for A$550m ($360m).
The proposal comprises various features, including a 10% free carried interest in favour of a Northern Territory-focused indigenous foundation to support indigenous communities.
The proposed deal is subject to conditions including due diligence, relevant regulatory and third-party approvals.
