The commonwealth has loaned Energy Resources Australia $58m for clean-up costs

Energy Resources Australia has asked for a federal hand-out to continue its world-first rehabilitation plan. Read why the mining giant needed public funds.

Ranger Mine pit 3 will be drained and filled with contaminated machinery and materials in 2022. Picture: (A)manda Parkinson

Energy Resources Australia has been granted a reprieve after the federal government released $58m in security bonds for the defunct uranium mine in Kakadu National Park.

The embattled mining company sold its last stock pile of uranium in May before asking the Albanese government to release an interim payment from the Ranger Rehabilitation Trust Fund.

ERA’s quarterly report said there were no sales in the September 2022 quarter however, material costs for rehabilitation equalled $50.1m.

It comes less than a month after Rio Tinto, who is an 86 per cent shareholder of the company, agreed to loan ERA $100m to cover the rehabilitation costs.

In a statement to the ASX, Energy Resources Australia said the bond relates to rehabilitation activities that have already been completed at Ranger for the period January 9, 2021 to June 30, 2022.

Forrest Egerton and Sharon Paulka looking at the growth of plants on Pit 1 which is undergoing rehabilitation. Picture: (A)manda Parkinson

ERA said it appreciated the support from Resources Minister Madeline King and would continue to work collaboratively to its goal of world class rehabilitation of the Ranger Project Area.

The NT News contacted Ms King’s office for comment but were told it was inappropriate for her to comment at this time.

After drawdown $481m will remain in the mines security bond, which by law is a deposit paid to the commonwealth to cover the full costs of rehabilitation in the event of default by the company.

However, in February this year Ranger released revised figures showing the rehabilitation costs had blown out to $2.1bn and would not be completed by 2026 when the mine lease concludes.