Thursday, 27 September, 2007

AFX

Energy Resources of Australia Ltd (ERA) said Thursday it will spend 57 million Australian dollars to expand the open pit at its Ranger uranium mine in Australia's Northern Territory to extend the mine's life to 2012.

ERA, 68 percent-owned by Rio Tinto, said the planned expansion will add an additional 4,857 tonnes (10.7 million pounds) of contained uranium oxide.

It said the majority of the additional production from the extension will occur in 2011. Processing at Ranger is due to cease in 2020.

As well, the company said, it will spend a further 10 million dollars on a study which will examine the potential for further expansion as well as the possibility of lifting capacity at the project's processing plant.

Meanwhile, the company said, it expects to have overcome the impact of flooding at the mine, caused by heavy rain in February, by next month, allowing production to return to normal levels in 2008.