ERA Ltd - Ranger 3 Deeps Project Update

RNS Number : 9783P

Rio Tinto PLC

11 June 2015

 

Energy Resources of Australia Ltd - Ranger 3 Deeps Project Update

11 June 2015

Rio Tinto acknowledges Energy Resources of Australia Ltd's (ERA) release to the Australian Securities Exchange on 11 June 2015, in which it announced it has decided it would not proceed with the Final Feasibility Study of the Ranger 3 Deeps project in the current operating environment.

Rio Tinto agrees with the decision not to progress the study.  After careful consideration, Rio Tinto has determined that it does not support any further study or the future development of Ranger 3 Deeps due to the project's economic challenges.

Rio Tinto recognises the importance of ongoing rehabilitation work at the Ranger mine site, which is surrounded by the World Heritage-listed Kakadu National Park.  Rio Tinto is engaged with ERA on a conditional credit facility to assist ERA to fund its rehabilitation program, should additional funding be required beyond ERA's existing cash reserves and the future earnings from processing ore stockpiles.

Rio Tinto is assessing a potential non-cash impairment charge of approximately US$300 million* (post tax) relating to its shareholding in ERA.

*nominal dollars

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