PERTH (miningweekly.com) – Mining major Rio Tinto has asked for the resignation of Energy Resources of Australia’s (ERA’s) chairperson Peter Mansell, a move which ERA on Monday said was already in the works.

Rio last week trashed an independent valuation of ERA, saying it failed to recognise opposition to the development of the Jabiluka uranium deposit.

The independent valuation, which was done on the behalf of ERA’s Independent Board Committee (IBC), was based on the development of the Jabiluka deposit, which is located on the Jabiluka mineral lease, and contains some 302-million pounds of uranium oxide at an average grade of 0.55%.

Rio on Monday called for Mansell’s resignation to allow for ‘board renewal’ and to introduce new perspectives to address the material cost and schedule overruns on the critical Ranger rehabilitation project in Australia’s Northern Territory.

“Following announcement of the cost and schedule overruns in February 2022, Rio Tinto has sought to work constructively with ERA’s IBC to find a funding solution to meet its rehabilitation obligations. This included engaging for several months on an interim entitlement offer that was deferred by the IBC in July 2022 when its proposed terms failed to obtain major shareholder support.

“Despite this engagement, Rio Tinto has remained deeply concerned that the opposition to further uranium mining on the land of the Mirarr People, the Traditional Owners of the area, has not been appropriately recognised in any funding proposals put forward by the IBC,” Rio said in a statement.

Rio has asked the IBC to urgently develop a workable plan to fund the increased rehabilitation costs, saying that to date, a suitable plan addressing the funding concerns has not been presented.

“Our utmost priority and commitment is to the rehabilitation of the Ranger Project Area in a way that is consistent with the wishes of the Mirarr People. However, given our recent dealings with the IBC and last week’s release of the Grant Thornton valuation report, we do not believe that can be achieved without renewal within ERA’s board,” Rio Tinto CEO for Australia Kellie Parker said.

“We thank Mansell for his contribution to ERA over many years and acknowledge his efforts to find a funding solution. However, there remains a strong difference of opinion between Rio Tinto and the IBC on the terms of rehabilitation funding, with the IBC’s view that successful rehabilitation could underpin potential future growth opportunities, despite the Mirarr People’s long-held opposition to further uranium mining on their country."

“We look forward to working with ERA to facilitate board renewal and urgently develop a workable plan to fund the increased rehabilitation costs.”

ERA on Monday said that Mansell’s resignation, along with that of the remaining members of the IBC, independent non-executive directors Paul Dowd and Shane Charles, had already been advised to Rio last week.

The IBC members reportedly advised Rio last week of their respective intentions to resign from the board of ERA as soon as a clear pathway to an interim funding solution could be ascertained, saying that the IBC members did not believe that it was in the best interest of ERA for them to continue working with Rio into the future.

The company also defended the inclusion of the Jabiluka asset into the independent valuation, saying the report was prepared in accordance with the Australian Securities and Investment Commission guidance, and that the report had noted the opposition to the development of the asset.