ENERGY Resources of Australia, the world's third largest producer of uranium, says demand for the fuel with remain strong into the future amid continued growth for electricity.

ERA produced almost 10 per cent of the world's uranium in 2007 from its Ranger mine in the Northern Territory.

"The forecast for continued growth in demand for electricity, energy security issues, increases in fossil fuel prices, and most significantly heightened awareness of climate change; all continue the focus on nuclear power and the demand for uranium,'' chairman David Klinger told the company's annual general meeting in Darwin.

"ERA is well positioned to benefit from the strong demand for uranium oxide worldwide and is actively seeking opportunities to add value by expanding and extending production from its resources.''

The company has a number of projects in the pipeline that include the construction of a laterite treatment plant and a radiometric sorter, an extension of the operating pit, and studies into a further expansion of the open pit.

Dr Klinger said uranium prices "remain strong'' with the depletion of the secondary market inventories and a shortage of near term primary supply keeping the price high.

"The likelihood of carbon emission costs being imposed on fossil fuel energy production also looms as another factor keeping prices high,'' Dr Klinger said.

ERA's averaged realised price for uranium in 2007 was $US265.06 per pound, compared to $US18.36 per pound in 2006 and spot prices, which climbed to as high as $US136 per pound.

The company said the realised price for uranium continued ot be under the current market price because of contracts negotiated several years ago when prices were lower.

ERA's customers include power companies in North America, Europe and South East Asia.
The company is majority owned by Rio Tinto.

Shares in the company lost 45 cents or 2.23 per cent to $19.70 by 12.05pm AEST.