ERA Holds $598M in Assets as Rehabilitation Delays and Legal Battles Mount
Energy Resources of Australia (ERA) reports ongoing legal challenges over the Jabiluka Mineral Lease and a compulsory acquisition court hearing, alongside delays in key rehabilitation works at the Ranger Project Area.
- Legal proceedings continue over Jabiluka Mineral Lease renewal
- Rio Tinto’s compulsory acquisition of ERA shares requires court approval
- Delays in Pit 3 capping slow Ranger Project rehabilitation progress
- ERA holds $58 million cash and $540 million in financial assets
- New Section 41CA Rehabilitation Authority granted for Ranger site
Legal and Shareholder Challenges
Energy Resources of Australia (ERA) has provided a detailed update for the December 2025 quarter, highlighting ongoing legal and operational challenges. Central to the company’s current landscape is the unresolved legal dispute concerning the non-renewal of the Jabiluka Mineral Lease, with further developments anticipated in early 2026. This dispute adds complexity to ERA’s operational outlook and investor sentiment.
Meanwhile, Rio Tinto, which now controls over 98% of ERA shares, has initiated compulsory acquisition proceedings for the remaining shares. However, objections from more than 10% of affected shareholders have triggered the need for Federal Court approval, with a hearing scheduled for February 2026. This legal hurdle introduces uncertainty around the timeline and completion of Rio Tinto’s full takeover.
Rehabilitation Progress and Setbacks
On the operational front, ERA continues its progressive rehabilitation of the Ranger Project Area, a critical environmental and regulatory obligation. The quarter saw no mining or production activity, with expenditure focused on rehabilitation efforts totaling approximately $59 million. However, a significant challenge has emerged with the dry capping of Pit 3, a key closure activity. Persistent issues with tailings drying and crust formation have delayed capping progress, forcing a suspension of activities during the wet season.
In response, ERA has engaged Rio Tinto technical experts and external consultants to review the capping design and schedule. This review, expected to conclude in early 2026, underscores the risk of extended timelines and increased costs, potentially impacting future project milestones. Water treatment operations have generally progressed well, although some technical issues with brine injection and water quality have required engineering remediation.
Financial Position and Regulatory Approvals
ERA’s financial position remains robust, with $58 million in cash and $540 million in other financial assets as of 31 December 2025. The company continues to manage related party transactions with Rio Tinto on arm’s length terms, including significant term deposits placed with Rio Tinto Finance Limited to optimise returns.
Importantly, ERA secured a new Section 41CA Rehabilitation Authority under the Atomic Energy Act, effective from January 2026. This regulatory approval is pivotal, enabling ERA to continue rehabilitation activities and long-term environmental monitoring at the Ranger site, providing a degree of operational certainty amid ongoing challenges.
Looking Ahead
With the Federal Court hearing looming and the rehabilitation review underway, ERA’s next few months will be critical. The outcomes will shape not only the company’s legal and operational trajectory but also investor confidence as Rio Tinto seeks to consolidate ownership and ERA navigates complex environmental obligations.
Bottom Line?
ERA’s path forward hinges on court rulings and rehabilitation breakthroughs, with significant implications for shareholders and environmental stewardship.
Questions in the middle?
- How will the Federal Court rule on Rio Tinto’s compulsory acquisition bid?
- What are the potential cost and timeline impacts from the Pit 3 capping delays?
- Could the Jabiluka Mineral Lease legal dispute affect ERA’s long-term operations?
