A uranium miner looks set to drop its Federal Court challenge to a government decision not to renew the controversial Jabiluka mineral lease.
A hearing of the case was vacated on Monday after the court was told Energy Resources of Australia was the subject of a compulsory share acquisition, making it wholly owned by Rio Tinto.
The mining giant has previously indicated it was not interested in mining at the site, one of the world's largest and richest uranium deposits.
The site was under lease to ERA which also operated the adjacent defunct Ranger uranium mine next to Kakadu National Park, near Jabiru, 300km east of Darwin.
In July 2024, the Northern Territory's then Labor mining minister Mark Monaghan refused to extend the lease after receiving advice from federal Labor Resources Minister Madeleine King.
The lease renewal was rejected partially due to federal government plans to absorb Jabiluka into Kakadu.
Prime Minister Anthony Albanese said at the time the government decision meant "there will never be mining at Jabiluka," home to some of the oldest rock art in the world.
The decision was a major win for the Mirrar traditional owners and environmental groups but prompted ERA to take legal action in the Federal Court.
ERA sued Ms King, Mr Monaghan, the federal and NT governments as well as the Jabiluka Aboriginal Land Trust and the Northern Land Council.
Justice Geoffrey Kennett on Monday heard from ERA barrister Richard Lancaster SC that the four-day hearing should be vacated as a compulsory acquisition of ERA shares had been arranged.
The acquisition by North Limited would mean "ERA would be indirectly wholly owned by Rio Tinto", the court was told.
"The affairs of ERA would be susceptible to control by Rio Tinto in accordance with its stated intentions which relevantly include repeated statements of a disinclination to carry out mining at Jabiluka," Mr Lancaster said.
The judge heard that respondents to the court action, including the federal government and traditional owners, had held discussions with the mining company and supported the move to vacate the hearings.
"ERA considers there are good prospects that the proceedings can be resolved by the agreement of all parties in, but not before early June," Mr Lancaster said.
That allowed time for ERA shareholders to lodge any objections.
Justice Kennett vacated the proceedings and ordered that a case management hearing should be held before June 9, with costs reserved.
In its 2023 annual report, ERA said there were no plans to develop the Jabiluka area into a uranium mine, saying it could not do so without the approval of the traditional owners.
It has said its priority would be to rehabilitate the Ranger mine, which comes at an estimated cost of $2.2 billion.
