Antinuclear

Rio Tinto-controlled ERA said on Tuesday it would update the market this quarter on the strategic review, which it kicked off in October after being advised by traditional owners that they oppose an extension of production at the mine near Kakadu.

The Mirarr traditional owners refused to back the miner’s bid to extend its processing permits beyond the current expiry date of January 2021.

ERA, 68 per cent-owned by Rio, warned then that it may have to write down its assets as a result. Some analysts calculate the impairment could reach several hundred million dollars. ERA, for whom Ranger is its only producing asset, is due to report its 2015 earnings on January 28………….

The strategic review is being run by ERA’s revamped board, which is led by independent chairman Peter Mansell. ERA’s previous independent directors resigned in June citing the lack of support from Rio for ERA’s stated strategy.

The Mirarr traditional owners signalled last July they would not agree to an expansion of the Ranger project, which also failed to win support from Rio the previous month.

The expansion would involve an underground mine, which ERA had been exploring through its Ranger 3 Deeps project that has since been placed on “care and maintenance”.

Rio said last June it would not support further mining at Ranger, and wanted instead to move to rehabilitation of the site, which lies 260 kilometres east of Darwin.

The news caused a 70 slump in ERA’s shares, which have since traded roughly flat, and closed unchanged at 38¢ on Tuesday. They are still well above UBS’s price target of 6¢, which is based on a zero probability that the Ranger Deeps project will proceed………

Opposition resources minister Gary Gray has said that a closure of Ranger would have “massive implications” for the economy of Arnhem Land and would be unfortunate for the uranium industry in Australia. http://www.smh.com.au/business/energy/energy-resources-of-australia-nears-decision-on-future-of-ranger-uranium-mine-20160111-gm3tsq.html