Energy Resources of Australia challenges government decision to deny Jabiluka uranium project licence renewal

Energy Resources of Australia (ASX: ERA) is seeking a response to legal proceedings it has launched against the federal and Northern Territory governments related to a decision not to issue a new licence for the Jabiluka uranium project.

ERA has requested the Federal Court of Australia hear its interlocutory application on an urgent basis, given the imminent expiry of the Jabiluka mineral lease.

ERA has told its shareholders it believes it has a right to have its renewal application lawfully determined and considers it was denied procedural fairness and natural justice in the decision-making process.

Number of defects

In its legal documentation, ERA said it considers that the Jabiluka licence decisions were subject to a number of other defects including that they were unreasonable.

The company said that its applications are warranted after taking into account the circumstances in which the renewal decision was made, which include the federal minister providing her advice within two days of the renewal application being referred to her.

It also alleges she did so without providing ERA an opportunity to comment on information or other matters that she took into account.

Added to Kakadu

The federal government advised the NT government in late July that the Jabiluka mineral lease should not be renewed, allowing the site to be added to Kakadu National Park.

This advice enabled the NT government to decline an extension of the Jabiluka lease.

Federal Minister for Resources and Northern Australia Madeleine King said the Jabiluka decision would end decades of uncertainty about the project.

“ERA and their major shareholder Rio Tinto rightly committed to not developing the site without the support of the Mirarr traditional owners, who are completely opposed to the renewal of the lease,” Ms King said.

“This decision provides clarity and certainty to all parties.”

Boss Energy offer

The minister’s move certainly provided Boss Energy (ASX: BOE) with clarity on Jabiluka’s future.

Boss recently confirmed on the ASX that it had been in discussions with ERA regarding Jabiluka that had led to Boss making a highly-conditional offer to acquire the Jabiluka site.

However, following the government’s decision to end the mineral lease on Jabiluka, Boss has withdrawn its offer and terminated discussions.