Closing the Ranger mine at Jabiru will cost $176million, operator Energy Resources of Australia has said.

he company's financial report for the half-year to June said Ranger would stop mining operations in 2008 and stop processing in 2011.

About $8 million would be set aside this year to pay for the removal of infrastructure and ``remediation of disturbed areas''.

``ERA is required to rehabilitate the Jabiluka Lease Area to a standard compatible with incorporation into Kakadu National Park if desired by the landowners upon cessation of mining operations,'' the financial report said.

The mining outfit said $41.4 million had been set aside in a government-administered trust fund for this purpose.

If the mine closed immediately, $23.6million could be sourced through a bank guarantee. But despite the looming closure, the report said ERA would continue to conduct exploration work around Ranger.

Thirty-six holes will be drilled _ to a total depth of 12,640m _ after the next wet season.

For the six months to June, ERA declared a half-year profit of $17million, up from $14million for the same period last year.

ERA said it had benefited from ``higher sales volume and improved prices for uranium oxide''.

Over the six-month period the company produced 2714 tonnes of uranium oxide, an increase of 400 tonnes on the same period last year.

The higher production was a result of a maintenance overhaul that followed the water contamination incident _ for which ERA was fined $150,000 _ in March 2004, the report said.

To meet sales commitments the mining company had to borrow uranium three times in the six months to June. About 322 tonnes had not yet been repaid.