IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
Energy Resources of Australia (ERA), Rio Tinto’s majority-owned uranium unit, said on Tuesday it expects to record a bigger provision of about A$2.3 billion ($1.51 billion) related to the rehabilitation of its Ranger uranium oxide mine than expected earlier.
ERA, in which Rio Tinto holds an 86.3% stake, expects to log the provision in its full-year 2023 financial results, which are expected to be released in February.
The provision expectation is up from its prior forecast of A$1.5 billion, with majority of the hike attributable to rehabilitation activities associated with the Ranger mine post 2027.
ERA expects to spend about A$1.2 billion in nominal terms, on rehabilitation activities up until the end of 2027, the company said.
The Ranger mine in Northern Territory was closed in 2021, and ERA has been looking to raise funds for the sustainable rehabilitation of former mine assets.
($1 = 1.5235 Australian dollars)
(By Sameer Manekar; Editing by Krishna Chandra Eluri and Shinjini Ganguli)
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