ERA Optimistic Despite Plunge in Production

By Evening Standard, London

Apr. 17–Energy Resources of Australia, which operates Rio Tinto’s massive Ranger uranium mine, saw production fall by 32 percent in the first quarter, but says it has promising signs of new high-grade uranium reserves at the mine.

Ranger supplies 11 percent of the world’s uranium and operates in a market that is seeing demand outstrip supply and record prices. But it is based in a harsh climate in Australia’s extreme north. ERA told shareholders in Sydney that the production slide was largely caused by a severe tropical wet season.

ERA was forced to declare force majeure on its sales contracts last month and lost about 300 tonnes in production due to the monsoon.

It is aiming to extend mining at Ranger by three years to 2011.

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