RIO Tinto's uranium subsidiary, Energy Resources of Australia, has reported a record first-half profit as it focuses on strengthening relationships with China. 

ERA, which was the first Australian miner to ship uranium to China last year, yesterday reported a net profit of $127.55 million for the first half of 2009, up 228 per cent from $38.9m in the same period the year before. 

Chief executive Rob Atkinson said it was a record result in terms of profit and the realised price the company received for uranium oxide. 

An increase in the average realised uranium sales price to $US48.02 a pound, from $US35.69 a pound in the six months to June last year, boosted revenue from uranium sales to $336.1m. This compared with revenue of $143.5m last year. 

ERA also reported that uranium oxide production for the six months to June 30 totalled 2695 tonnes, up 14 per cent on the same period last year. 

"We had a strong period at the mine and produced more material than this time last year. Right across the board it was very strong," Mr Atkinson said. 

"The biggest thing that really impacted the profit was the realised price, it was a significant one. 

"There was a large jump and that comes about from us putting in place contracts two to four years ago that takes into account not only spot prices but the long term uranium prices, as well as fixed prices. 

"As the uranium market has improved, we have continued to enjoy better prices."

Sales were 31 per cent higher at 2280 tonnes, compared with 1746 tonnes for the first half of last year. 

Mr Atkinson said that while ERA's predominant markets were still the US, the European Union and Japan, the company hopes to develop close, strong relationships with the Chinese. 

"I fully expect they (China) will be a significant part of our portfolio moving forward. It is still early stages but the relationship with the Chinese is very positive," he said. 

"The relationships are there, the discussions are there and the Chinese certainly value ERA as a customer that they want to do business with."

The uranium miner's chief, who recently returned from a trip through China, Japan, Taiwan and Korea, said demand for uranium was strong. 

"On that visit to Asia, customers showed no signs of letting up and some were asking for more, almost immediately," he said. 

"While there are more nuclear plants being built, there aren't too many new uranium mines being opened, and if there is a weakness moving forward, it won't be from the demand side but from the supply side."