Energy Resources Quarterly Uranium Output Jumps 32%

Angela Macdonald-Smith
Bloomberg

Energy Resources of Australia Ltd., producer of about a 10th of the world's mined uranium, said first-quarter output rose 32 percent in the absence of "major'' disruptions caused by the weather.

Production of uranium oxide jumped to 1,327 metric tons, or 2.9 million pounds, in the three months ended March 31, from 1,006 tons a year earlier, the Darwin-based company known as ERA said today in a statement. Second-quarter output will be reduced due to the processing of lower-grade ore, it said.

Energy Resources, controlled by Rio Tinto Group, is expanding its Ranger mine in the Northern Territory as global demand for uranium rises from power utilities. A force majeure declared on deliveries in the first quarter last year because of flooding in the mine pit was lifted on Jan. 14.

"The wet season is drawing to an end and water levels in the pit are substantially lower than at the same time in 2007,'' the company said in the statement, sent to the Australian Stock Exchange. "However currently there is restricted access to higher-grade ore, which is located predominantly in the bottom of the pit.''

Energy Resources fell as much as 62 cents, or 3.1 percent, to A$19.68 in Sydney trading on the exchange. The shares were at A$19.90 at 10:25 a.m. local time.

Output fell 15 percent from the fourth quarter of 2007.

Force majeure is a legal clause allowing a supplier to miss contracted deliveries due to circumstances beyond its control.


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