Monday, 16 July, 2007

AFX News Limited

SYDNEY (Thomson Financial) - Energy Resources of Australia Ltd (ERA) lifted its output of drummed uranium oxide by 48 pct to 1,490 tonnes in the second quarter from 1,006 tonnes in the first by processing stockpiled high-grade ore, the company said Tuesday.

But ERA said that the amount of ore mined at its open-pit Ranger mine in the Northern Territory of Australia had fallen 10 percent to 690,862 tonnes because work there had been disrupted by flooding.

Last month the company, of which Rio Tinto owns 68 percent, warned that it expected to report a net loss of 5-10 million Australian dollars for the first half, compared to the net profit of 19.9 million dollars it made in the first half of 2006.

ERA said production of uranium oxide over the rest of 2007 and in 2008 would be affected by water in the Ranger pit preventing access to higher-grade ore.

The flooding is due to heavy rain in late February and early March.