Mining company Energy Resources Australia (ERA) has begun legal action against the Australian federal and Northern Territory governments over a decision not to renew its lease over the Jabiluka uranium mine.

Surrounded by Kakadu National Park, the site at Jabiluka is one of the world’s largest and richest uranium deposits.

The majority Rio Tinto-owned ERA has held a lease over the site since 1991, but has never mined or developed it.

Last month, the Northern Territory government rejected an application by ERA to extend its undeveloped uranium lease for another 10 years.