Thursday, 8 March, 2007

The Age

URANIUM miner Energy Resources of Australia is expecting a drop in

full-year output after declaring force majeure on its sales contracts following heavy monsoonal rain.

ERA declared force majeure yesterday after a tropical low, which led to the formation of cyclone George, dumped 850 millimetres of rain over the Ranger mine in the seven days to March 4. "The area has received 1600 millimetres to date this year, which is above the total annual average rainfall. In one 72-hour period alone, a total of 750 millimetres fell," the company said.

ERA ceased operations at the Northern Territory mine on February 27 and restarted yesterday.

ERA said first-quarter production was now estimated to be between 20 and 30 per cent lower than in the corresponding period last year. ERA's announcement was made after the market closed. Its stock rose $1.10 to $24.60.