ERA Energy Resources of Australia (ASX: $ERA) Announcement

ERA Energy Resources of Australia (ASX: $ERA) has appointed Rio Tinto to manage the Ranger Rehabilitation Project under a new Management Services Agreement (MSA). The MSA, expected to be implemented in the 2nd quarter of 2024, will see Rio Tinto managing all aspects of the rehabilitation of Ranger on ERA's behalf, leveraging their mine rehabilitation and project management experience.

Executive Commentary

Rick Dennis, Chairman and Chairman of ERA's Independent Board Committee, stated, 'We are pleased to have appointed Rio Tinto to manage the Ranger Rehabilitation Project. The Ranger Rehabilitation Project is a complex and globally significant rehabilitation, and after extensive consideration, the IBC has concluded that there would be significant value for ERA in directly leveraging Rio Tinto's mine rehabilitation, project management experience, and capabilities.' Brad Welsh, ERA Managing Director and CEO, added, 'The ERA team has worked incredibly hard and made good progress rehabilitating Ranger. However, as the project moves into a new phase, it will benefit from Rio Tinto's global expertise in mine closure. We look forward to working with and supporting Rio Tinto on the safe and efficient delivery of this important project.'

Summary of the Announcement

ERA Energy Resources of Australia (ASX: $ERA) has entered into a Management Services Agreement (MSA) with Rio Tinto to manage the Ranger Rehabilitation Project. The MSA, expected to be implemented in the 2nd quarter of 2024, will enable Rio Tinto to oversee all aspects of the rehabilitation of Ranger, leveraging their technical expertise in designing, scoping, and executing closure projects. The agreement is anticipated to bring significant value and potential cost savings to ERA, as acknowledged by the Independent Board Committee. The company's commitment to creating a positive legacy and achieving sustainable rehabilitation of former mine assets is evident in this strategic partnership. With Rio Tinto's global expertise, ERA aims to ensure the safe and efficient delivery of the Ranger Rehabilitation Project, emphasizing the importance of leveraging external capabilities for the project's success.