ERA lifts production
TROUBLED miner Energy Resources of Australia (ERA) has reported some good news, boosting quarterly production at its uranium mine in the Northern Territory.
The majority Rio Tinto-owned company has been crippled by heavier than usual wet weather in the Territory in the last year, which brought production to a standstill for four months.
In the three months to June 30, ERA produced 632 tonnes of uranium oxide, which was three per cent higher than the preceding quarter.
The company's shares closed three cents higher at $1.635, but were as high as $18.40 in 2007 before the GFC and a series of problems with its operations.
Production stopped during the same quarter in 2011 when the company used stockpiles and had to buy uranium to meet contractual obligations.
The company has still been affected by flooding in the Ranger Open Pit mine this year, but started mining again at the end of May.
ERA has forecast uranium production within a range of 3,200 to 3,700 tonnes in 2012, up from 2,641 tonnes in 2011, depending on the weather.
The mine's life will then be over when 2012 ends, with the company to use stockpiles to produce uranium until 2016.
It is investigating starting an underground mine at the site, which is 260km east of Darwin, having approved a $57 million pre-feasibility study last month.
ERA has flagged a $50 million to $60 million first half loss.
That follows a $153.6 million calendar year loss in 2011, impacted by the flooding and the downturn in world demand following the Fukushima nuclear disaster.