Boss Energy withdraws takeover bid following decision not to renew permit for Jabiluka site
The Australian government has stepped in to block a renewed attempt to mine uranium in the Kakadu National Park in the country’s Northern Territory, all but ending a decades-long dispute over one of the world’s largest untapped deposits of high-grade uranium.
Energy Resources of Australia (ERA), a company majority-owned by Rio Tinto, had applied to renew a licence permitting uranium mining at a site called Jabiluka, triggering opposition from the local Mirarr indigenous community.
Mirarr members opposed any prospect of mining there since an original development plan was stopped in the 1990s after public protests.
ERA had applied for a 10-year lease renewal on the mine, but on 26 July the Northern Territories’ mining minister, Mark Monaghan, said a decision had been taken not to renew the lease based partially on advice from the federal government in Canberra.
The Northern Territory government said it would deem the site to be “reserved land”, preventing other mining companies from trying to develop it.
“We have gone through a thorough process to ensure that all stakeholder views have been considered in this decision,” he said.
“The federal government advice, along with the wishes of the Mirarr people, were critical to this process and outcome.”
The Northern Territory government declared special reserve status over the Jabiluka area, which is in the surrounds of Kakadu national park, in May.
ERA said it was disappointed with the licence decision and would consider its next steps, which could include an appeal. In contrast, Rio Tinto said it was “pleased” that the wishes of the Mirarr people had been respected.
Following the Northern Territory government’s decision to reject the mining lease renewal, uranium miner Boss Energy withdrew a takeover bid for ERA.
ERA, which entered a trading halt on Friday, confirmed it had received a AUD550m (€332m $359m) indicative offer for the mining lease at Jabiluka but said the proposal was withdrawn on Sunday following the NT government announcement.
Background: Uranium Resources And Nuclear Ban
ERA shut down production at its Ranger uranium mine in 2021 after 40 years of operation.
It has since been working to return the mine site to its original state, but the cleanup effort has become increasingly expensive and drawn out.
In February 2022, ERA said the rehabilitation could cost up to AUD1.2bn more than expected and take two years longer than initially planned.
According to the Minerals Council of Australia (MCA), the country has the largest endowment of uranium resources in the world, with around one-third of global resources.
Australia generated AUD812m in export earnings from uranium in 2022-23, the MCA said.
The MCA said it is advocating for the lifting of the nuclear energy ban in Australia.
Nuclear energy was banned 25 years ago, a decision that has “cost the nation significant global investment and scientific collaboration on new nuclear technologies”, the MCA said.
Australia’s federal Coalition leader Peter Dutton recently announced the party proposes to build seven large-scale nuclear power plants and two small modular reactors if it wins the next general election.
