Three mining bosses will terminate their employment in response to a mineral producer’s request for them to be axed.
Rio Tinto recently demanded that Peter Mansell resign from chairing subsidiary Energy Resources of Australia (ERA). The parent company had accused ERA of allowing cost and schedule blowouts at the now defunct Ranger Mine, 262km east of Darwin.
“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 independent board committee and … release of the Grant Thornton valuation report, we do not believe that can be achieved without renewal within ERA’s board,” Rio Tinto chief executive Australia Kellie Parker said in a public statement.
Parker also became unhappy after ERA considered whether to mine a new uranium deposit next to the existing mine in Kakadu National Park. The new deposit would only be mined if traditional owners approved the proposal.
“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 independent board committee,” she said.
ERA confirmed chairman Peter Mansell and independent non-executive directors Paul Dowd and Shane Charles will all step down as a result.
“In light of recent developments in their dealings with Rio Tinto, and noting the requests from Rio Tinto that Peter Mansell consider his position as chair of ERA, the independent directors of ERA do not believe that it is in the best interests of ERA for them to continue to work with Rio Tinto into the future,” a spokesperson said in a public statement.
“Mansell and independent non-executive directors, Paul Dowd and Shane Charles (who comprise the IBC), advised Rio Tinto … of their respective intentions to resign from the board of ERA as soon as – inter alia – a clear pathway to an interim funding solution for the company is arrived at.”
ERA then debunked incorrect mainstream media reports about the company allegedly raising funds to develop the new mine. The money was intended to be used for rehabilitating the Ranger mine site.
“It is inaccurate to suggest or imply that ERA has been seeking to raise funds, through the interim entitlement offer, for the development of Jabiluka or any other mine,” a spokesperson said.
“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.”
Click here for the full list of inaccuracies.
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