Wednesday, 29 November, 2006

by ERA
ASX announcement

Energy Resources of Australia Ltd will spend $27.6 million in 2007 to construct a plant at the Ranger mine in the Northern Territory to process lateritic ore, a material containing a high proportion of clay minerals.

The laterite processing plant will contribute approximately 400 tonnes per annum of uranium oxide to ERA’s production over seven years from 2008 through to 2014.

This production is already included in ERA’s current processing plan, and the lateritic ore forms part of current stated reserves.

Approximately 1.6 million tonnes of lateritic ore have been stockpiled since the mine began operating to allow for the optimum processing method to be developed. Because of the claylike nature of this material, it has to be introduced into the main processing plant through a dedicated handling facility.

Construction of the plant will commence in April 2007 with the first lateritic ore scheduled for processing in the first quarter of 2008.