A multinational resources producer approved voluntary terminations of three bosses.
Rio Tinto welcomed the resignations of chair Peter Mansell, and independent non-executive ERA directors Paul Dowd and Shane Charles, at subsidiary Energy Resources of Australia (ERA).
The parent company hopes new management at ERA’s independent board committee will help bring “new perspectives” to address material cost and schedule blowouts at the defunct Ranger Mine, 262km east of Darwin.
“We are committed to working with ERA to facilitate this board renewal process and urgently develop a workable plan to fund the increased rehabilitation costs,” Rio chief executive Australia Kellie Parker said in a public statement.
Rio is also optimistic that new leadership will ease concerns about whether ERA plans to explore a new uranium deposit next to the existing mine in Kakadu National Park.
“We restate our belief that the successful rehabilitation of the Ranger project area, which is of critical importance to the Mirarr people, Rio Tinto and ERA, can be achieved in a way that is consistent with the Mirarr people’s wishes. This remains our utmost priority and commitment,” Parker said.
“We thank Peter Mansell, Paul Dowd and Shane Charles for their contribution to ERA, and wish them well for the future.”
ERA previously debunked incorrect mainstream media reports about the company allegedly raising funds to develop a new mine. The money was intended to be used for rehabilitating the Ranger mine site.
“Funds from the interim entitlement offer are being sought to fund the Ranger rehabilitation until the end of calendar 2023 … [and] our report does not suggest the traditional owners will change their view, or would provide approval,” a spokesperson said.
Rio has already finished amending the existing $100 million credit facility to help ERA manage “immediate liquidity issues”.
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