Tuesday, 17 July, 2007

by Alex Wilson
Market Watch

MELBOURNE (MarketWatch) -- Uranium miner Energy Resources of Australia Ltd. (ERA.AU) Tuesday said second quarter production at its Ranger mine has risen but flooding will continue to impact operations into 2008.

Heavy rains in February and March have seen the water level rise at the mine in the Northern Territory, disrupting production and forcing ERA to give guidance for a first half loss of between A$5 million and A$10 million.

"Production and sales deliveries for the balance of 2007 and 2008 will continue to be affected as a result of water levels in the pit delaying access to high grade ore," ERA said Tuesday.

The Rio Tinto Ltd. subsidiary produced 1,490 metric tons of uranium in the second quarter, up 150% on the previous corresponding period which was also impacted by heavy rains and cyclones.

Rio said a rise in production was due to processing of high grade ore that was mined and stockpiled prior to the wet season.