Federal Minister for Resources Madeleine King met with Energy Resources of Australia (ERA) for just 10 minutes one month before she gave “unfair” advice not to renew its Jabiluka mining lease in the Northern Territory, the company has claimed.
ERA chief executive Brad Welsh outlined the limited engagement he received from the Commonwealth over the future of its Jabiluka project in Federal Court documents made public on Tuesday.
At the same time as ERA is fighting to keep the Jabiluka lease — its only asset capable of development — the company is fast running out of cash and is seeking to raise $210 million.
Jabiluka, which is surrounded by Kakadu National Park, is considered one of the world’s largest and richest uranium deposits, but Mirarr traditional owners have opposed its development.
ERA has taken legal action against the Commonwealth and NT governments over the decision not to approve ERA’s request to extend its long-running lease over Jabiluka for another 10 years.
In submissions to the Federal Court, ERA argued it was denied procedural fairness by both governments and that “excessive” weight was given to the views of the Northern Land Council and the Mirarr people.
In an affidavit, Mr Welsh said Ms King’s office told him that Midnight Oil singer Peter Garrett, a long-time protester against Jabiluka’s development, met with Prime Minister Anthony Albanese regarding ERA’s lease in February.
But Mr Welsh could only secure a 30-minute meeting with Ms King on June 28 and, according to the affidavit, she arrived 20 minutes late and did not ask any questions or address any of ERA’s concerns.
Following the meeting with Ms King, Mr Welsh claimed he was not invited to provide written submissions or comment on specific objections to the lease renewal, nor was he given any guidance as to when a decision would be made.
Thousands of people, including Mirarr traditional owners and Peter Garrett, protested against the development of the Jabiluka mine in the 1990s. (Supplied: Gundjeihmi Aboriginal Corporation)
Two days to make decision
After having ERA’s renewal application since March 20, then-NT minister for mining Mark Monaghan referred the matter to the Commonwealth on July 23.
Two days later Ms King advised her NT counterpart to refuse ERA’s lease renewal.
On July 26, Mr Welsh said he received a call from Mr Monaghan advising him that ERA’s Jabiluka renewal application would be refused.
Mr Welsh said he was “in shock” following the call and was not told why the renewal was rejected.
A week later, ERA was told by Mr Monaghan’s office that it would not provide a copy of the Commonwealth’s advice, but said that it was “based on consideration of a number of matters including, but not limited to, the views of ERA, the Northern Land Council and Mirarr traditional owners”.
ERA’s Federal Court submission said “the secrecy with which the process has been attended since the advice decision is symptomatic and a continuation of the prior unfairness”.
On July 29, ERA announced it had received a non-binding offer from Boss Energy to buy the Jabiluka lease for $550 million — an offer that was subsequently withdrawn because of the extension refusal.
The Commonwealth and NT governments are yet to file responses to the Federal Court, while the case is listed for a final hearing starting on October 28.
ERA says the rehabilitation of its Ranger mine will cost at least $2.4 billion until 2027. (ABC News: Michael Franchi)
ERA’s $210m capital drive
On Monday ERA announced it was looking to raise at least $210m through the share market in order to cover an expected shortfall of cash until July 30, 2025.
In a statement to the ASX, the company said it would “deplete its cash resources by the end of 2024 or early 2025” unless it raised funds.
ERA is trying to cover the ballooning costs of rehabilitating the Ranger uranium mine, which it operated near Jabiluka for 40 years.
ERA’s “best current estimate” was to spend at lease $2.4 billion on rehabilitation works at Ranger until 2027.
Costs beyond that date are still uncertain.
Rio Tinto, ERA’s majority shareholder, assumed responsibility for the management of the Ranger site on June 3.
Rio Tinto supported ERA’s last fund-raising attempt and bought $319m worth of the company’s shares in April 2023.
