Energy Resources of Australia Ltd said it produced 3,793 tonnes of uranium oxide for the 2010 year compared with 5,240 tonnes in 2009, with production levels adversely affected by a lower mill head grade. Plant performance remained robust with a record 2.4 million tonnes of ore treated.

Material mined in the December quarter of 3.3 million tonnes was up 9% on the September quarter and 23% lower than the previous corresponding quarter. Mill head grade for the December quarter of 0.27% uranium oxide was 50% higher than the September quarter and 35% higher than the previous corresponding period. Mill head grade for the year, however, was 0.19% compared with 0.26% for 2009, a drop of 26%. The company said access to higher grade ore was re-established in the December quarter after the effects of an above average wet season and geotechnical issues, particularly in the first half of the year.

Total sales of uranium oxide were 5,026 tonnes compared with 5,497 tonnes for the previous year. The shortfall was covered by inventory management, flexibility in timing of shipments to customers, loans and purchases.

Work has continued on the feasibility study for the proposed heap leach facility at the Ranger mine. The draft EIS will be submitted for public notification and comment in the first half of 2011.

Total evaluation expenditure during the December quarter was $10 million compared with $7 million for the December 2009 quarter. Total expenditure on exploration in 2010 was $5 million, steady with the previous year.