Monday, 16 April, 2007

The Age

Uranium miner Energy Resources of Australia has reported a 28 per cent drop in production of uranium oxide from its Ranger mine in the Northern Territory for the first quarter of 2007, following heavy rain in late February and early March.

ERA, whose annual general meeting is being held in Sydney on Monday morning, reported 1,006 tonnes of uranium oxide production in the quarter, also 39 per cent down on the 4th quarter of 2006.

The company reported 769,498 tonnes of ore mined, up 45 per cent on the prior 1st quarter but 399,303 tonnes of ore milled, down 32 per cent.

"ERA declared force majeure on its sales contracts on 7 March 2007 as a result of exceptionally heavy rainfall at the Ranger mine and processing plant in late February and early March," the company told the Australian stock exchange on Monday morning.

It said approximately 300 tonnes of uranium oxide production was lost as a result of the high rainfall, which forced a shutdown of Ranger's processing plant.

"Ore mined was 45 per cent higher than the corresponding quarter in 2006 as water treatment and disposal strategies enacted in 2006 allowed access to higher grade ore at the bottom of the pit in January and February, before the high rainfall when access was curtailed.

"In the second quarter of 2007, ERA will process high grade ore that was mined and stockpiled in 2006.

"The elevated water level in the mine will restrict access to ore in the second half of 2007 and into 2008."

ERA said full year production in 2007 was likely to be similar to 2006, as announced on April 2, while 2008 production was likely to be 25-35 per cent lower than in 2006.

Sales in 2007/08 would be in line with production.