EMBATTLED Energy Resources of Australia is reportedly considering an expansion of its Ranger mine operations in the Northern Territory after last week announcing an extension to the shutdown of the mine’s processing plant.

On ABC’s Inside Business program, ERA chief Rob Atkinson said he was confident of tapping into a major resource at Ranger by deeper drilling at the mine.

“We’ve done extensive drilling over the last three years and it’s a 34,000-tonne resource,” he said. 

“And when you put that in perspective, it’s one of the largest finds anywhere in the world of uranium and it’s right on our doorstep. So I think it’s a very exciting challenge and the exploration decline which we’ve worked through, we are very close to a decision on that as to whether or not we’re proceeding with that.”

Asked about the 70% fall in the company’s share price since the beginning of 2010, Atkinson said the reason for the plunge was due to a delay to the introduction of a new project by 2012 when the Ranger open pit was due to be exhausted. 

“Those new projects have been delayed somewhat, and as a result we cannot guarantee to our shareholder, or to investors, that our production levels are not going to fall quite dramatically after 2012,” he said on the program. 

“I think predominantly that’s the reason, and then when you look at this year, the major reason is, any company that announces suspension of three months, never mind six months, there is going to be an impact.”

Atkinson’s comments come after ERA announced that near-record rainfall had hit its bottom line, with the uranium miner flagging a 2011 first-half loss of between $A30 million and $50 million.

The company also extended the shutdown of its processing plant operations at Ranger until late July 2011 to allow water levels in the mine to drop.

In late January, ERA originally flagged a 12-week suspension to the processing operations at Ranger in anticipation of further flooding in the region. 

As a result of the extension to the shutdown, ERA now expects 2011 production from the mine to be around 2400 tonnes of uranium oxide, down from its previous forecast which was in line with 2010 production of 3793t.