Monday, 16 April, 2007

ABC News Online

Energy Resources of Australia (ERA) has revealed uranium oxide production was 28 per cent lower in the first quarter of this year due to high rainfall at its Ranger Mine in the Northern Territory.

ERA had declared a force majeure on its sales contracts in early March as a result of the heavy wet season rain.

A force majeure essentially frees one or both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a flood, prevents one or both parties from fulfilling their obligations under the contract.

The volume of ore milled for the three months was 32 per cent lower than in the same quarter last year.

The company says this was largely the result of a processing plant shut down and restart forced by the extreme weather.