Uranium miner Energy Resources of Australia (ERA) says higher capital expenditure and a weaker US dollar will dent earnings in 2010. 

"Against a relatively strong average realised exchange rate in 2009 of US82, a weaker US dollar in 2010 . . . will of course continue to be a very significant driver on realised sales,'' chairman David Klingner told ERA's annual meeting on Wednesday. 

The weak US dollar and higher expenditure on scheduled maintenance programs and development projects during 2010 would affect earnings in the first half and full year, Dr Klingner said. 

Capital investment would also increase in 2011 as the company advances production expansion plans at its Ranger mine in the Northern Territory. 

ERA reiterated that its full-year production and sales for 2010 should be in line with those of recent years. 

While the open pit at Ranger is almost exhausted, ERA hopes to maintain steady production levels for some time by using a proposed heap-leach facility that will recover material that was previously deemed low grade. 

Dr Klingner said the long-term outlook for uranium remains strong. 

"Despite price weakening in 2009, the long-term outlook for the uranium market remains strong, with nuclear power recognised as a key element of the global energy solution,'' he said. 

"While market prices have stabilised well below the historic highs reached in 2007, current prices are still significantly higher than for most of ERA's 30-year history, supporting investments to increase output.''