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 ERA
is the world's third largest producer of uranium, and one of Australia's
least favourite mining companies. Charged to mine the Ranger uranium deposit
in the Northern Territory and develop
the nearby Jabiluka mine, ERA has
never been a popular 'corporate citizen.' With Rio
Tinto's acquisition of North in August 2000, the future of ERA -
already in doubt following its disastrous decision to mine Jabiluka
- has become even more clouded.
History
ERA was floated in 1980 as a result of a decision by the Australian
government to divest itself of its interests in the Ranger
Uranium Mine, under construction in Kakadu
National Park. Ranger has operated continuously since then, producing
57,975 tonnes of yellowcake by the year 2000.1
In 1991 ERA purchased the
Jabiluka ore body from Pancontinental Mining for a cost of $125 million.2
This was part of a broad strategy to keep the Ranger Mill in operation
after the Ranger pits were mined out. Ore from Jabiluka was intended
to be trucked 20 km to the south to Ranger for processing. This proposal,
completely different in scope to the Pancontinental design, was vetoed
by the Mirrar Senior Traditional Owner
Yvonne Margarula, leaving ERA with
government approvals for a mill at Jabiluka that it has no desire to
build. The company's share price promptly collapsed.
Rio
Tinto Takes Over
On August 11 2000 Rio Tinto announced that
it had gained a 54.25% interest in ERA's parent company North Limited,
the result of a seven week hostile takeover campaign.3
Within four days, ERA announced the appointment of Barry Cusack as the
Company's new Chairman, replacing Malcolm Broomhead. Cusack is the Managing
Director of Rio Tinto Australia, Chairman of Bougainville Copper Limited
and Coal & Allied Industries Limited and a director of a number
of Rio Tinto subsidiaries.4 Half
of ERA's board was also replaced, with Rio Tinto people installed in
their place.
The
Future
 The
immediate future for ERA - and the long term future for the Mirrar
people and Kakadu - is now unclear.
Rio Tinto's takeover of North was more about iron-ore opportunities
in Western Australia than the struggle over uranium in Kakadu, and it
is possible that Rio Tinto sees ERA as more of a liability than an asset.
The company is rumoured to be quietly testing the waters with Cameco,
Cogema and WMC to see
if there are any takers. There will never be a better opportunity for
the Jabiluka lease to be handed back to the Mirrar
people, and the whole proposal finally laid to rest.
The
Jabiluka Mine Proposal
Australia's most unpopular mine - find out how to be a part of the
campaign to keep Jabiluka for the Mirrar
The
Ranger Uranium Mine
ERA's disastrous experiment with 16 million tonnes of radioactive waste
in a World Heritage area.
References
1.
Uranium Mill Tailings Wastes in Australia: Past, Present and Future
Management - Gavin M. Mudd July 2000
2.
ERA Website - Company information.
3.
The Age Friday August 11 2000
4.
ERA Media Release 15 August 2000
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