ERA Chairman, Directors Quit in Dispute with Rio Tinto

   By Rhiannon Hoyle 
 

SYDNEY--Energy Resources of Australia Ltd. (ERA.AU) said its chairman and two independent nonexecutive directors had resigned, indicating rising tension between the uranium company and its controlling shareholder Rio Tinto PLC (RIO).

Earlier this month, ERA announced it would shelve its Ranger 3 Deeps project in Australia's Northern Territory amid a prolonged downturn in the global uranium market. While ERA said it wanted to revisit the project later, Rio Tinto said it no longer supported the future development of the site.

"Given the differing views on the future of the Ranger 3 Deeps project, it is difficult for ERA to pursue its stated approach without the support of its major shareholder, Rio Tinto," ERA said in a statement.

The company said Chairman Peter McMahon and directors Helen Garnett and David Smith, had stepped down, and that the board would start looking for replacement directors. Chief Executive Andrea Sutton had been appointed interim chair of the ERA board, it said.

Write to Rhiannon Hoyle at [e-mail]

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