Thursday 27 April, 2006
Herald Sun

URANIUM miner Energy Resources of Australia will boost spending on exploration amid growing interest in nuclear power.

"With a stronger outlook for the industry, ERA has significantly increased exploration spending," ERA chairman David Klingner told the company's annual meeting in Sydney yesterday. "We hope this will lead to an increase in the known ore reserves and resources, and the discovery of new deposits."

ERA, which is majority-owned by mining giant Rio Tinto, said expenditure on exploration was expected to surpass $5 million this year.

The world's third largest uranium miner is due to stop mining at the Ranger mine in Kakadu National Park in 2008, but uranium oxide will continue to be processed at the site, 250km east of Darwin, until 2014.

Dr Klingner said prices for uranium oxide had risen in the past year as nuclear power gained favour in the face of increasing demand for energy.

About 16 per cent of the world's electricity comes from nuclear power.

Dr Klingner said contracts being negotiated would reflect the higher price levels, as those tied to lower prices several years ago expired.

"We are going to be in a position to progressively reap the benefits of the high prices."

Meanwhile, the company is continuing to assess the impact of the downgraded cyclone Monica, which hit just north of Jabiru this week.