Rio takes full control of Jabiluka

Rio Tinto (ASX: RIO) announced its compulsory acquisition of all remaining Energy Resources Australia (ERA) (ASX: ERA) shares that it does not currently own.

This follows a ruling by the Takeovers Panel that Rio would assume control over rehabilitation activities at Jabiluka.

As a result of Rio Tinto taking up its pro rata entitlements in the entitlement offer and the level of participation by other ERA shareholders, Rio Tinto will hold over 98% of ERA’s shares.

Rio intends to proceed with the compulsory acquisition at $0.002 per ERA share, being the same price as the entitlement offer.

Rio Tinto Australia chief executive Kellie Parker says the company remains committed to the successful rehabilitation of the Ranger project area to a standard that will establish an environment similar to the adjacent Kakadu National Park, a World Heritage site.

“Our utmost priority and commitment is to complete this important rehabilitation project in a way that is consistent with the wishes of the Mirarr People,” she said.

“Proceeding with compulsory acquisition, after participating for our full entitlement in the ERA capital raising, underlines our commitment to Ranger’s rehabilitation.”

If compulsory acquisition is completed, Rio Tinto has no intention to invest in mining or development of the Jabiluka deposit.