News, Quarterly and half yearly results, Sustainability

ERA bumps up rehabilitation spend

Fortescue

Energy Resources of Australia (ERA) saw a jump in its rehabilitation spend for 2023, up to $211 million compared to $194 million in 2022.

Other results from EPA’s 2022–23 financial year results included cash resources of $726 million and interest income of $32.2 million.

The company is also continuing to transition its rehabilitation activities.

“Based on varying levels of certainty of rehabilitation programs of work ERA is transitioning its rehabilitation activities to a programme management approach,” EPA said in its announcement.

“The programme management approach is intended to provide greater certainty and value for shareholders and stakeholders as it will support optimisation, risk and uncertainty to be addressed before funding is requested whilst enabling critical path rehabilitation activities to be progressed where appropriate definition and certainty exists.”

ERA is expecting to spend approximately $1.2 billion rehabilitation activities up until the end of 2027.

“Operating costs for 2023 were lower than the corresponding period in 2022,” EPA said.

“This was primarily due to higher employee related cost in 2022 due to redundancies following ERA’s transition to an integrated project management team and higher 2022 consulting and legal charges.

“In addition, the completion of all sales of remaining uranium inventories in May 2022 resulted in no royalty and selling costs in 2023 further positively impacting operating costs. Operating costs are now those only of a corporate nature.”

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