Monday, 23 October, 2006

by Nigel Adlam
NT News

THE Northern Territory's only uranium mine could keep operating for three more years.

Drilling has uncovered possible new reserves, Energy Resources of Australia says in its quarterly report.

The company is so excited by the results that it is considering drilling through the Wet.

It has spent nearly $5 million on exploration this year.

Business analysts said the life of the mine could be extended until 2017.

Mining was due to end in 2008. Stockpiles would then have been milled until the operation shut down.

The drilling results are good news for the nearby township of Jabiru, which was built to service the mine.

It was faced with a crippling population loss.

ERA's bid to develop nearby Jabiluka -- believed to hold the biggest uranium reserves in the world -- have been stalled by the opposition of the Mirrar people.

But the company hopes the political atmosphere will change over the next decade.

Many countries -- including the world's two fastest growing economies, China and India -- are building new nuclear reactors.

The price of uranium is still rising -- up from $US10 per pound four years ago to more than $US56 now -- and ERA is keen to lock-in long-term contracts.

The newly-found deposits are on the southeast corner of the present 135m-deep pit and are up to 250m below ground.

An underground operation may be necessary to mine newly-discovered reserves on another part of the Ranger complex. Ranger has reported its production was down this year because the big Wet hampered mining.

The Australian Conservation Foundation said an expansion would mean "bigger problems for Kakadu and a bigger clean up cost".

"The mine has been plagued with serious water and waste management issues and has a long history of leaks, spills and incidents," he said.