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Energy Resources Australia expected to be granted more time to rehabilitate former uranium mine in Kakadu

The federal government has introduced a bill to allow a mining operator more time to clean up environmental damage left from a decommissioned uranium mine near Kakadu National Park.

Energy Resources of Australia (ERA) — a subsidiary of mining giant Rio Tinto — shut down production at its Ranger uranium mine in January last year after 40 years of operation.  

It has since been working to return the mine site to its original state, but the clean-up effort has become increasingly expensive and drawn out.

Earlier this year, ERA estimated rehabilitation works could cost up to $1.2 billion more than expected and take workers until 2028 to complete the job — two years longer than initially planned.

The company's current lease stipulates it must complete the rehabilitation and be off the mine site by 2026, a condition legislated by the Atomic Energy Act 1953.

On Thursday, federal Resources Minister Madeleine King introduced a bill to parliament to amend that legislation to let government officials oversee the clean up beyond 2026, and to ensure ERA completes the job.

"For such an environmentally, culturally and historically important region, only the highest standard of rehabilitation will do," Ms King said in a statement.

She said the bill would also enable the site to be closed down in stages, so areas that had been rehabilitated could be handed back to Aboriginal landowners. 

In a statement, an ERA spokeswoman said the amendment allowed the company "sufficient time" to rehabilitate the mine to a standard "that will establish an environment similar to the adjacent Kakadu National Park".

"ERA reaffirms its commitment to the successful completion of the rehabilitation of the Ranger Project Area," the spokeswoman said.

Minister for Indigenous Australians Linda Burney said the bill was supported by the Northern Land Council and Gundjeihmi Aboriginal Corporation, which represents the Mirarr Traditional Owners.

"Once this bill is passed, I will be able to start negotiations on a new land access agreement with the Mirarr traditional owners," Ms Burney said.

A history of abandoned mines sparks concern

The Northern Territory is home to several disused mines where taxpayers have been forced to foot multi-million dollar bills to pay for their toxic aftermath.

Hannah Ekin from the Arid Lands Environment Centre said this is why the Ranger mine's clean-up delays should "set off alarm bells".

"This is typical of mines like Ranger," she said. 

"[Mining companies] ask the government and populations to trust they will manage the environmental impacts of their projects ... and when it comes to the end and they've made their money, they often leave us to look after the rehabilitation and deal with the consequences."

Mirarr traditional owners have also expressed doubts over ERA's ability to finish the multi-billion dollar clean-up of the Ranger mine without causing further contamination.

ERA has previously pledged it will be able to find the estimated $2.2 billion needed to rehabilitate Ranger properly, without having to plead with the Commonwealth for a taxpayer-funded bailout.

Last month, the company applied to drawdown $58 million from a Commonwealth trust fund, and is anticipating a decision by the end of October.

ERA has not committed to a completion date, other than to say it could drag on past the end of the decade.

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