Energy Resources of Australia reported a significantly reduced net loss of $50 million for 2025, driven by rehabilitation provision adjustments and higher interest income. Meanwhile, rehabilitation delays and Rio Tinto’s compulsory acquisition efforts highlight ongoing operational and ownership challenges.
- Net loss narrowed 80% to $50 million in 2025
- Rehabilitation provision decreased to $2.3 billion despite cost uncertainties
- Delays in capping Pit 3 raise risk of extended timelines and higher costs
- Rio Tinto holds over 98% of shares, pursuing compulsory acquisition amid shareholder objections
- Jabiluka Mineral Lease renewal remains in legal dispute and fully impaired
Financial Performance and Rehabilitation Costs
Energy Resources of Australia Ltd (ERA) has reported a net loss after tax of $50 million for the year ended 31 December 2025, a marked improvement from the $246 million loss recorded in 2024. This improvement largely stems from a $131 million unwinding of discount on rehabilitation provisions and a $32 million reduction in rehabilitation cost estimates, partially offsetting ongoing rehabilitation expenses.
Revenue increased 58% to nearly $59 million, primarily from interest income on cash and term deposits, reflecting ERA’s strategy of managing its financial resources amid limited operational revenue. The company continues to operate without debt, holding $1.16 billion in cash and securities, including $561 million secured in a government trust fund dedicated to rehabilitation.
Ranger Rehabilitation Project: Progress and Challenges
ERA’s core focus remains the rehabilitation of the Ranger Project Area, a complex and sensitive environmental undertaking within the World Heritage-listed Kakadu National Park. The rehabilitation provision stands at $2.3 billion, reflecting the scale and uncertainty of the work ahead. While some cost savings were realised through deferred activities and operational efficiencies, key milestones such as the capping of Pit 3 have faced delays due to slower tailings drying and crust formation.
These delays have prompted a detailed review of capping designs and construction methods, with construction trials now scheduled for April 2026. The extended timeline and technical challenges introduce risks of increased costs and schedule slippage. Water treatment efforts continue, with some components ahead of plan, but overall brine injection remains below forecasts, requiring ongoing remediation and monitoring.
Legal and Ownership Developments
On the legal front, ERA’s attempt to renew the Jabiluka Mineral Lease remains unresolved, with the Northern Territory Minister refusing renewal and ERA pursuing court action. The lease is fully impaired on ERA’s books, but the legal process continues, underscoring ongoing uncertainty around this asset.
Ownership consolidation is underway as Rio Tinto now holds over 98% of ERA shares and has initiated compulsory acquisition of the remaining shares. However, shareholder objections exceeding the statutory threshold have stalled the process, requiring Federal Court approval. The court hearing commenced in February 2026 and remains pending, adding a layer of complexity to ERA’s governance and future direction.
Funding Outlook and Strategic Priorities
ERA secured approximately $766 million in additional funding through a 2024 entitlement offer, supporting rehabilitation activities until around Q3 2027. Despite this, the company faces a capital and reserves shortfall exceeding $1 billion for future rehabilitation obligations. With no immediate revenue sources beyond interest income, ERA is expected to continue operating at a loss for the foreseeable future.
The strategic priority remains the comprehensive rehabilitation of the Ranger Project Area to a standard acceptable to Traditional Owners and the Commonwealth Government. ERA is also progressing studies to refine rehabilitation approaches and preserve its undeveloped resources, while navigating regulatory, environmental, and community expectations.
Bottom Line?
ERA’s improved financials mask ongoing rehabilitation hurdles and legal uncertainties that will shape its path forward.
Questions in the middle?
- How will delays in Pit 3 capping impact overall rehabilitation costs and timelines?
- What is the likely outcome and timeline of the Federal Court’s decision on Rio Tinto’s compulsory acquisition?
- Could changes in regulatory or environmental requirements materially alter ERA’s rehabilitation provision?