Australia Blocks Rio Tinto Unit From Uranium Mine

By Ben Otto

The Australian government has blocked a unit of Rio Tinto from mining a vast uranium deposit in the country's remote north, effectively closing the door on a decadeslong dispute over the resource.

The Northern Territory government said Friday that a lease for the Jabiluka deposits won't be renewed, coming after Energy Resources of Australia in March said it applied for a 10-year extension to its existing lease.

The region's mining minister, Mark Monaghan, said the decision was made partly based on advice from the federal government.

ERA, majority owned by Rio Tinto, said in a statement that it is disappointed with the decision and is assessing its options.

The Jabiluka deposits are located in Australia's sparsely populated northern region, surrounded by the World Heritage-listed Kakadu National Park.

ERA held a lease for the area of the deposits for some four decades but faced opposition from the region's Mirarr indigenous people over their development. The Northern Territory in May declared special reserve status in the area, beginning once the current lease expires in August.

Write to Ben Otto at ben.otto@wsj.com

(END) Dow Jones Newswires

July 26, 2024 06:31 ET (10:31 GMT)

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