Investor hits out as Rio takes on $2.4bn uranium clean-up job

Uranium investor Willy Packer has blamed ‘wokeism at its worst’ for events related to Rio Tinto-backed ERA and the disputed Jabiluka mine lease.

Investor Willy Packer is disgruntled with the Takeovers Panel.

Uranium investor Willy Packer says “wokeism at its worst” is at play in events related to Rio Tinto-backed Energy Resources of Australia and the disputed Jabiluka mine lease.

Rio Tinto is poised to take full control of ERA and, with it, the responsibility for the $2.4bn rehabilitation of the former Ranger uranium mine near the Jabiluka deposit on the edge of the Kakadu National Park.

The Takeovers Panel on Tuesday dismissed protests by Mr Packer and another minority shareholder over whether ERA should be allowed to raise up to $880m at a heavily discounted 0.2c.

The raising will clear the way for Rio to pass the 90 per cent compulsory acquisition threshold.

ERA on Tuesday said it intended to proceed with the Rio-backed entitlement offer as soon as possible.

Mr Packer’s investment fund and Richard Magides’ Zentree Investments, ERA’s second and third biggest shareholder with about 12 per cent of the stock combined, had wanted to at least delay any placement until a Federal Court hearing on the Jabiluka mining permit.

ERA alleges government officials acted unlawfully when they rejected its application to renew the mining lease, and has dragged Federal Resources Minister Madeleine King, the Northern Territory government and the Jabiluka Aboriginal Land Trust into court.

Mr Packer said he was disappointed the Takeovers Panel had reiterated its earlier decision to not intervene.

“The Takeovers Panel has had its say for a second time and that’s that,” he said.

Mr Packer said his investment fund – once valued at $2bn but hit by exposure to Russian oil and gas stocks – could not participate in a raising by a company that had no assets pending the outcome of the court action.

“Wokeism at its worst was behind the decision to wipe out the ERA assets (the Jabiluka mining lease),” he said.

“Mining could have provided $1bn in royalties to the indigenous community and about 10 per cent of global uranium supply.”

The Mirarr native titleholders are opposed to mining of Jabiluka and Rio boss Jakob Stausholm has declared Jabiluka a “no-go” zone.

Rio has a longstanding pact with the Mirarr to never mine Jabiluka without their consent.

Originally published as Investor hits out as Rio takes on $2.4bn uranium clean-up job