Energy Resources of Australia (ERA) claims the Federal Government’s refusal to renew its Jabiluka mining lease in the Northern Territory was “unfair" and conducted in a "secret" manner.
As revealed in Federal Court documents, the company says it had minimal engagement with Federal Minister for Resources Madeleine King, who met with ERA chief executive Brad Welsh for just 10 minutes before advising against the lease renewal.
Welsh, in his affidavit, detailed the lack of procedural fairness, stating that he was neither invited to provide written submissions nor given specific objections to address. He also criticised the decision-making process, which heavily weighed the views of the Northern Land Council and Mirarr traditional owners, who oppose the Jabiluka development.
Jabiluka, located within the Kakadu National Park, is one of the world's largest uranium deposits, but its development has long been contentious.
ERA, now embroiled in legal action against the Commonwealth and Northern Territory governments, is also grappling with financial difficulties.
The company is not only fighting to keep the Jabiluka lease, which is its only asset that presents development potential, but it is fast running out of cash. As such, ERA revealed this week that it is seeking to raise $210 million to cover costs and continue operations, particularly for the rehabilitation of the Ranger uranium mine, which is expected to cost at least $2.4 billion.
ERA has taken legal action against the Commonwealth and NT governments over the decision not to extend its Jabiluka lease for another 10 years. The case is scheduled for a final hearing on October 28, while the Commonwealth and NT governments have yet to respond to ERA's claims.