Antinuclear

ERA is now valued by the ­market at $175 million — less than its cash of $290m. When it was ­riding high on bumper uran­ium prices in 2006-07, it was a $4 billion ­company.

The value destruction is mainly due to the collapse in uranium ­prices from a record $US136 a pound in June 2007 to $US36 a pound more recently, with the 2011 Fukushima nuclear disaster in Japan punching a hole in demand. But ERA’s dramatic value loss is also due to a string of embarrassing production and operational mishaps at Ranger, and its belated acknowledgment that a uranium mine operating inside the world heritage-listed Kakadu National Park really should have stayed on top of its water-handling issues from day one, not 30 years down the track.

As the 68 per cent owner, Rio necessarily suffered reputational damage from ERA’s woes.

If nothing else, it was to provide regular fodder for anti-uranium campaigners. That Rio has tired of it all would be understandable.

Its 61-year Australian uranium experience has been full of controversy, and it has not been limited to ERA and Ranger.

There was controversy with its involvement in Australia’s first commercial uranium production at Rum Jungle near Batchelor in the Northern Territory in 1954.

Through its antecedents, Rio operated the British-financed Rum Jungle on behalf of the ­Australian government, with the uranium destined for Britain’s cold war nuclear arsenal.

Rum Jungle ended up an environmental nightmare, such were the practices of the day. Years later, Rio antecedents were involved in the Mary Kathleen mine in Queensland, which was controversial enough in its second coming (1975-1982) for what would now be considered standard anti-nuclear opposition, and its starring role in the anti-­cartel action by Westinghouse Electric in 1976……….

Rio said: “It does not support any further study or the future ­development of Ranger 3 Deeps due to the project’s economic ­challenges.’’

Rio did not say so, but implicit in its statement was that it had ­arrived at the view R3D was not ­viable and ERA had best devote its remaining cash flow — and its $290m cash kitty — to planning for the rehabilitation of Ranger, expected to cost more than $550m……http://www.theaustralian.com.au/business/mining-energy/era-caught-in-rios-uranium-exit-fallout/story-e6frg9df-1227406513449