Production at the Ranger uranium mine has dropped by 27 per cent in the first quarter of this year compared with the same period last year.

In its quarterly operations review, the mine's owner, Energy Resources of Australia, says market conditions have softened, with the spot price of uranium dropping to $41.75 per pound.

The company, which supplies about 10 per cent of the world's uranium, says the reduction in drilling at the mine was mainly due to instability on the south wall of the open pit and wet weather.