Response to Energy Resources of Australia’s independent valuation report

Rhea-AI Summary

Rio Tinto (LSE: RIO) has acknowledged the independent valuation report by Energy Resources of Australia, released on September 26, 2022. This report aims to address significant cost and schedule overruns in the Ranger rehabilitation project in Northern Territory. The company respects the long-standing opposition of the Traditional Owners, the Mirarr People, towards further uranium mining. Rio Tinto remains dedicated to completing the Ranger rehabilitation to match the environmental standards of Kakadu National Park and is seeking a fair funding solution considering the Mirarr People's concerns.

Positive

• Rio Tinto is committed to completing the Ranger rehabilitation project to a standard similar to Kakadu National Park.
• The company aims to work constructively with the ERA's Independent Board Committee to find funding solutions.
• Rio Tinto's offer to fund ERA's rehabilitation remains on the table, reflecting their belief in fair value.

Negative

• The independent valuation report does not adequately consider the Mirarr People's opposition to uranium mining, causing distress among the community.
• ERA IBC's failure to secure major shareholder support for proposed funding indicates potential financial instability.

MELBOURNE--(BUSINESS WIRE)-- Rio Tinto notes the independent valuation report released by Energy Resources of Australia (ERA) on 26 September 2022, to determine a valuation of the company as it seeks to address material cost and schedule overruns on the critical Ranger rehabilitation project in Australia’s Northern Territory.

Rio Tinto understands the long-term opposition the Traditional Owners, the Mirarr People, have to further mining development on their country and acknowledges the statement of the Gundjeihmi Aboriginal Corporation on 28 September 2022 setting out their views of the independent valuation report and its failure to give due weight to their consistent and inter-generational opposition to further uranium mining on their country.

Rio Tinto remains committed to ensuring the rehabilitation is completed to a standard that will establish an environment similar to the adjacent Kakadu National Park and continues to provide technical support to the project. The company has always believed that the rehabilitation of Ranger can be successfully achieved in a way that is consistent with the wishes of the Mirarr People and have sought to work constructively with ERA’s Independent Board Committee (IBC) in its efforts to find a funding solution to meet ERA’s rehabilitation obligations.

Rio Tinto’s consistent position is that the terms of any ERA funding solution should reflect fair value having regard to:

• the material cost overruns and interim funding requirements;
• funds raised will be dedicated strictly to rehabilitation and not any future development; and
• the Traditional Owners, the Mirarr People’s consistently publicly stated opposition to developing the Jabiluka uranium deposit.

In July 2022, when the ERA IBC failed to obtain major shareholder support for its proposed offer terms, Rio Tinto offered to subscribe for its full pro-rata entitlement at an offer price that reflects Rio Tinto’s view of fair value. This offer to ERA remains.

In Rio Tinto’s view, the independent valuation report prepared by Grant Thornton and adopted by the IBC to help set the price for a future entitlement offer, fails to appropriately recognise the long-standing opposition of the Mirarr People to further uranium mining on their country. Rio Tinto understands that this causes distress for the Mirarr elders and community.

Rio Tinto chief executive Australia Kellie Parker said “We are actively seeking to reflect the wishes of the Mirarr People in our approach to the funding of ERA’s rehabilitation commitment having long understood their opposition to further mining on their country.

“We believe 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.

“We are again asking the ERA IBC to urgently develop a workable plan to fund the increased rehabilitation costs.”

This announcement is authorised for release to the market by Steve Allen, Rio Tinto’s Group Company Secretary.

riotinto.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220928006114/en/

Please direct all enquiries to media.enquiries@riotinto.com



Media Relations, UK



Illtud Harri

M +44 7920 503 600



Matthew Klar

M+ 44 7796 630 637



David Outhwaite

M +44 7787 597 493



Media Relations, Americas



Simon Letendre

M +514 796 4973



Malika Cherry

M +1 418 592 7293



Media Relations, Australia



Jonathan Rose

M +61 447 028 913



Matt Chambers

M +61 433 525 739



Jesse Riseborough

M +61 436 653 412



Investor Relations, UK



Menno Sanderse

M: +44 7825 195 178



David Ovington

M +44 7920 010 978



Clare Peever

M +44 7788 967 877



Investor Relations, Australia



Tom Gallop

M +61 439 353 948



Amar Jambaa

M +61 472 865 948



Rio Tinto plc



6 St James’s Square

London SW1Y 4AD

United Kingdom



T +44 20 7781 2000

Registered in England

No. 719885



Rio Tinto Limited



Level 43, 120 Collins Street

Melbourne 3000

Australia



T +61 3 9283 3333

Registered in Australia

ABN 96 004 458 404



Category: ERA

Source: Rio Tinto

FAQ

What is the latest news regarding Rio Tinto (LSE: RIO) and the Ranger rehabilitation project?

Rio Tinto acknowledges the independent valuation report from Energy Resources of Australia, focusing on addressing cost and schedule overruns in the Ranger rehabilitation project.

How does Rio Tinto plan to address the concerns of the Mirarr People?

Rio Tinto is committed to aligning the rehabilitation project with the wishes of the Mirarr People and is seeking a workable funding plan.

What issues are affecting the Ranger rehabilitation project?

Cost overruns and the opposition from the Traditional Owners, the Mirarr People, who are against further uranium mining are significant challenges.

Has Rio Tinto made any offers regarding the funding of the Ranger rehabilitation project?

Yes, Rio Tinto has offered to subscribe for its full pro-rata entitlement at an offer price reflecting their view of fair value.