The Australian Conservation Foundation has called for an end to plans to expand the Ranger uranium mine following Energy Resources of Australia’s confirmation of reduced production, profit and ore reserves at the troubled Kakadu mine.

Ranger continues to be dogged by operational problems, including unresolved seepage from the tailings dam and delays in establishing methods to handle contaminated water.

ERA yesterday announced an annual profit decline of more than 80% along with declines in annual production and future reserves.

“Ranger is entering its twilight zone,” said ACF’s Dave Sweeney.

“This aging operation has hit the point of diminished return and increased environmental impact.

“ERA should not be permitted to prolong this unacceptable situation by constructing a new mine tunnel or fast tracking the unproven and polluting acid heap leach method of processing waste rock.”

ERA is facing increased market scrutiny over its performance:

1               Broker Goldman Sachs has placed a ‘sell’ rating on ERA due to uncertainty and risk relating to reserves and production

2               Foster Stockbroking has spoken of a loss of confidence in the company’s management and a lack of transparency

“ERA ’s planned expansion of the already over-stretched and under-performing Ranger mine adds considerable delay, cost and complexity to the final closure and rehabilitation of the site and poses a growing threat to the environmental and cultural values of the World Heritage listed Kakadu National Park,” Mr Sweeney said.

“It is time for ERA to end its increasingly ill-considered and desperate expansion plans and start a measured, costed and comprehensive clean up and exit from Ranger.”