Energy Resources of Australia Ltd (ERA)

This most rapacious of mining companies needs no introduction in this forum. Owner and operator of the Ranger uranium mine within the confines of the Kakadu National Park ecosystem, and pushing repugnantly to open the Jabiluka uranium mine before anyone dare stop them. To say controversial doesn’t satisfy the emotions. ERA also own and operate their own uranium mining consultancy - ERA Environmental Services Pty Ltd (ERAES), which mostly contracts back to the Ranger mine (no surprise really). They are supposed to be an autonomous company, and as such they wrote, in partnership with fellow consulting engineers, Kinhill, the original EIS and the Jabiluka Mill Alternative. Independence ? NOT !!
ERA also own the small Barote Springs uranium exploration leases (also known as Ranger 68, thought to be reasonable in size, and Ranger 4, small and low grade). The deposits are within Stage 2 of Kakadu National Park, and effectively protected from any possible development. There is no known activity, nor none planned. Although with the recent victory by Newcrest Mining validating their El Sherana exploration leases despite the Upper South Alligator Valley now being Stage 3 of Kakadu, ERA may find a similar legal loophole to renew their Ranger 68 lease - which is within Stage II of Kakadu.
In August 2000, ERA's parent company North Ltd (who owned 68.4% of ERA), was taken over by Anglo-Australian mining giant Rio Tinto (Rio were really interested in North's iron ore assets in the Pilbara in WA). Immediately Rio began a detailed review of their newly acquired majority interest in ERA, and depsite very little public statements (although they were happy to confirm that they were trying to sell the ERA share, most likely to Cameco or Cogema), they finally announced that they would NOT support ERA's continued development of Jabiluka in the near future due to traditional owner and community opposition (the depressed uranium market also figured, but this was too obvious). Rio are still trying to sellout of ERA (not 'cheaply' though) but have refused to recognise the true nature of opposition to Jabiluka and won't decommission the current site works (which are approaching crisis point in water management) and return the lease to the Mirrar and Kakadu National Park.
The proof that targeting shareholders can work is that NRMA Investments withdrew their 0.12% investment in ERA in October 1997. Continuing the familiar trend of fellow German uranium companies, Rheinbraun sold their interest in ERA to Cameco in August 1998 (Cameco also acquired the remaining interests in various North American uranium mines from German uranium company Uranerzbergbau). Cameco have announced in April 2001 that they intend to sell their ERA share, thereby pulling out of any potential purchase of ERA, This demonstrates that ERA's uranium mining colleagues internationally consider them a poor investment, this leaves only Cogema remotely interested in ERA (Cogema still own the Koongarra uranium deposit just south of Ranger). Further proof is the divestment of some major banks in ERA, shown below in the table below.
Since 1996, ERA’s share price has virtually collapsed, falling over 70% from a high of $5.90 in 1996/97, as optimism reigned supreme for the initial proposal at Jabiluka, to $1.86 in November 1998, as deep doubts take control over both Jabiluka and the future prosperity of the world uranium market. ERA are not undertaking any actual greenfields or JV uranium exploration, although they are keeping their options open by maintaining desk-based reviews of potential projects.

Directors : Barry Cusack (Chair), Bob Cleary (Chief Executive Officer), Gregory Boyce, Richard A Carter, Brian Hickman, Mark Hughes, James Marlatt (from Cameco, representing both Cogema & Cameco), Masuo Shibata (Japanese rep.)

Contacts : Head Office - 120 Christie St, St Leonards, NSW 2065 (changed in mid-1999)
Ph (02) 9467 9811 - Fax (02) 9467 9800

Ranger Mine - Locked Bag 1, Jabiru, NT 0886
Ph (08) 8938 1211 - Fax (08) 8938 1203

Earth Water Life Sciences Pty Ltd (EWL) (ERA 100% subsidiary - formerly ERA Environmental Services - wonder why they changed! Obvious really...)
482 Stuart Hwy, Winnellie, NT 0820
Ph (08) 8984 3255 - Fax (08) 8984 4161

Website : http://www.energyres.com.au/

Banking Services : Westpac Banking Corp. and Commonwealth Bank of Australia

ASX Codes : Shares - ERA, Options - ERAO (Home Exchange - Sydney, NSW)

Annual Reports : Request via ERA website.

ACN : 008-550-865

Share Registry : Corporate Registry Services Pty Ltd Level 11, 60 Carrington St, Sydney, NSW 2000

Other Websites :
Anti-Nuclear Alliance of WA - ERA Info Page.
WISE Uranium Project - ERA page.
SEA-US links - Ranger, Jabiluka and North Ltd pages.
Mirrar-Gundjehmi
NT Greens
Australian Conservation Foundation (ACF)
The Gulliver File - Ranger, ERA, Peko-Wallsend Ltd, North, Pancontinental Dossiers.

Shareholder Divestment in ERA : % Shareholding ¹

Company 81 83 84 85 86 87 95 96 97 98 99 00 97 ² 98 ² 99 ²

Westpac ³ 0.40 0.32 0.27 0.23 0.14 0.17 0.33 0.33 0.22 0.09 <0.03 <0.03 8.53 9.43 9.56

ANZ 0.77 1.06 0.83 0.65 0.19 0.21 0.06 0.06 0.18 <0.03 <0.03 <0.03 5.93 3.53 4.17

National 0.36 0.57 0.29 0.30 0.24 0.24 0.61 0.61 0.43 0.26 0.24 0.298 4.68 4.20 6.54

Chase Manhattan - - - - - - 1.04 1.04 1.02 0.93 <0.03 <0.03 4.67 4.81 7.05

Commonwealth 0.49 0.71 0.68 0.78 0.87 0.92 - - - <0.03 <0.03 <0.03 0.57 0.66 0.31

¹ - It should be noted this is direct investment in ERA only, and does not include shares in North Ltd.
² - Direct investment of each bank in ERA through (total) shares in North Ltd (for comparison).
³ - Shareholdings of the Bank of NSW (1981, 1983-87), before the merger to become Westpac.

Company	81	83	84	85	86	87	95	96	97	98	99	00	97 ²	98 ²	99 ²
Westpac ³	0.40	0.32	0.27	0.23	0.14	0.17	0.33	0.33	0.22	0.09	<0.03	<0.03	8.53	9.43	9.56
ANZ	0.77	1.06	0.83	0.65	0.19	0.21	0.06	0.06	0.18	<0.03	<0.03	<0.03	5.93	3.53	4.17
National	0.36	0.57	0.29	0.30	0.24	0.24	0.61	0.61	0.43	0.26	0.24	0.298	4.68	4.20	6.54
Chase Manhattan	-	-	-	-	-	-	1.04	1.04	1.02	0.93	<0.03	<0.03	4.67	4.81	7.05
Commonwealth	0.49	0.71	0.68	0.78	0.87	0.92	-	-	-	<0.03	<0.03	<0.03	0.57	0.66	0.31

Top 19 Shareholders (7-August-2000 ¹)

Company or Entity Share (%)

1 Rio Tinto Ltd 68.392

2 Japan Australia Uranium Resources Development Co Ltd ² 10.642

3 Cogema Australia Pty Ltd (French) 7.473

4 Cameco Corporation (Canadian) 6.446

5 BT Custodial Services Pty Ltd (totals) 1.317

6 OKG Aktiebolag (Swedish) 0.537

7 National Nominees Ltd 0.298

8 Citicorp Nominees Pty Ltd 0.248

9 Ganra Pty Ltd 0.126

10 BT Custodians Ltd 0.121

11 Reinsurers Investments Pty Ltd 0.116

12 BT Life Ltd 0.111

13 Mrs Geok Siew Lim 0.083

14 QBE International Pty Ltd 0.052

15 Clipper Investments Ltd 0.049

16 Dr Andrew Duncan 0.048

17 Caithness Consolidated Pty Ltd 0.042

18 AMP Nominees Pty Ltd 0.033

19 Rexowa Pty Ltd 0.033

Total - 96.168% of Total Ordinary Shares

No. of Ordinary Shareholders - 7,430

Notes : ¹ - calculated to show effective ownership of total issued share capital.
² - Equally owned by Kansai Electric Power Co., Kyushu Electric Power Co. and Shikoku Electric Power Co. (see WISE Uranium Project - ERA page).

Director's Interests :
Barry Cusack (Chair) - Appointed to the ERA Board in August 2000. Mr Cusack is Managing Director, Rio Tinto - Australia, Chairman of Bougainville Copper Limited and Coal & Allied Industries Limited and a director of a number of Rio Tinto subsidiaries. He joined the Rio Tinto Group in 1966 and has held senior positions in industrial minerals, iron ore, energy and base metals.
Robert Cleary (CEO) - Appointed Chief Executive and Director of ERA in July 1999. Mr Cleary previously held the positions of Deputy Chief Executive and General Manager Operations for ERA.
Gregory Boyce Appointed a Director of the ERA Board in December 2000. Mr Boyce is Chief Executive Energy of Rio Tinto PLC in London. Prior to his appointment as Chief Executive Energy, Mr Boyce was President and CEO of Kennecot Energy Company and responsible for all North American energy related business of Rio Tinto Energy.
Richard A Carter - Appointed to the ERA Board on 18 November 1999. Mr Carter is Chair of Zeal consulting. Past President of the Australasian Institute of Mining & Metallurgy and former Executive General Manager and Chief Executive Officer of BHP Minerals.
Brian Hickman - Director since August 1997. Director of Illawarra Technology Corporation Ltd and ARRB Transport Research Ltd. Formerly Managing Director of AMDEL Ltd.
Mark Hughes - Appointed to the ERA Board in August 2000. Mr Hughes was previously Chief Financial Officer, Hammersley Iron, based in Perth. He held a number of senior positions in Rio Tinto headquarters in London and with Rio Tinto in Melbourne. He joined the Group in 1989.
James Marlatt - Appointed Alternate Director of the ERA Board in September 1999 and as a Director in October 2000 at the nomination of the B Class shareholders (ie. Cogema, 7.47% and Cameco, 6.45%). Geological engineer and Manager Exploration for Cameco Australia Pty Ltd in Darwin.
Masuo Shibata - Director since February 1991 (C Class Shareholders). President of Japan Australia Uranium Resources Development Co Ltd and Japan Indonesia LNG Co Ltd.

References - Annual Reports of ERA (1981, 1983-87, 1995-99) and North Ltd (1998-99).
Plus Mudd (1998).
ERA Share figure courtesy of ERA website
First share price graph produced by ComputerShare. With thanks.
Second share price graph produced by Australian Financial Review website.
Last updated April 13, 2001.
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Copyright © SEA-US 1999-2001

Directors :	Barry Cusack (Chair), Bob Cleary (Chief Executive Officer), Gregory Boyce, Richard A Carter, Brian Hickman, Mark Hughes, James Marlatt (from Cameco, representing both Cogema & Cameco), Masuo Shibata (Japanese rep.)
Contacts :	*Head Office* - 120 Christie St, St Leonards, NSW 2065 (changed in mid-1999) Ph (02) 9467 9811 - Fax (02) 9467 9800
	*Ranger Mine* - Locked Bag 1, Jabiru, NT 0886 Ph (08) 8938 1211 - Fax (08) 8938 1203
	Earth Water Life Sciences Pty Ltd (EWL) (ERA 100% subsidiary - formerly ERA Environmental Services - wonder why they changed! Obvious really...) 482 Stuart Hwy, Winnellie, NT 0820 Ph (08) 8984 3255 - Fax (08) 8984 4161
Website :	http://www.energyres.com.au/
Banking Services :	Westpac Banking Corp. and Commonwealth Bank of Australia
ASX Codes :	Shares - ERA, Options - ERAO (Home Exchange - Sydney, NSW)
Annual Reports :	Request via ERA website.
ACN :	008-550-865
Share Registry :	Corporate Registry Services Pty Ltd Level 11, 60 Carrington St, Sydney, NSW 2000

	Company or Entity	Share (%)
1	Rio Tinto Ltd	68.392
2	Japan Australia Uranium Resources Development Co Ltd ²	10.642
3	Cogema Australia Pty Ltd (French)	7.473
4	Cameco Corporation (Canadian)	6.446
5	BT Custodial Services Pty Ltd (totals)	1.317
6	OKG Aktiebolag (Swedish)	0.537
7	National Nominees Ltd	0.298
8	Citicorp Nominees Pty Ltd	0.248
9	Ganra Pty Ltd	0.126
10	BT Custodians Ltd	0.121
11	Reinsurers Investments Pty Ltd	0.116
12	BT Life Ltd	0.111
13	Mrs Geok Siew Lim	0.083
14	QBE International Pty Ltd	0.052
15	Clipper Investments Ltd	0.049
16	Dr Andrew Duncan	0.048
17	Caithness Consolidated Pty Ltd	0.042
18	AMP Nominees Pty Ltd	0.033
19	Rexowa Pty Ltd	0.033
Total - 96.168% of Total Ordinary Shares
No. of Ordinary Shareholders - 7,430
Notes : ¹ - calculated to show effective ownership of total issued share capital. ² - Equally owned by Kansai Electric Power Co., Kyushu Electric Power Co. and Shikoku Electric Power Co. (see WISE Uranium Project - ERA page).