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 rhiannon.hoyle@wsj.com
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