Boss Energy withdraws bid for Energy Resources' Jabiluka uranium site (updated)

Boss Energy

29/07/2024 02:11

(Updates with further details and background from paragraph 3
onwards)
       July 29 (Reuters) - Boss Energy  BOE.AX  has withdrawn
an offer to buy Energy Resources of Australia's  ERA.AX 
Jabiluka uranium site in the Northern Territory, after a federal
government decision to not renew the mine lease, the companies
said on Monday. 
    Boss Energy had offered A$550 million ($360 million) for the
mine site, Energy Resources of Australia (ERA) said.   
    The Australian government on Friday said it had blocked the
application by ERA, which is majority owned by Rio Tinto
 RIO.AX , to extend a mining lease for the uranium-rich area in
the country's Northern Territory.
        Rio Tinto has said that it would not support mining in
the area against the wishes of the traditional owners, the
Mirarr Indigenous group.  
        The government's decision was cheered by the Mirarr for
ending a decades-long dispute over the untapped deposits of
uranium in the area adjacent to the Kakadu national park. The
Gundjeihmi Aboriginal Corporation, which represents the group,
had no additional comment on Monday.
        ERA had applied in March for a 10-year lease renewal on
Jabiluka, as the current one expires in August.
    
    ($1 = 1.5260 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; Additional
reporting by Melanie Burton in Melbourne; Editing by Tom Hogue
and Sonali Paul)
 ((Rishav.Chatterjee@thomsonreuters.com;))