Antinuclear

ERA uranium miner’s share loss, new project now unlikely

Like the rest of the uranium producers and explorers, ERA’s sharemarket rating has been hit by the fallout for uranium demand expectations from the Fukushima nuclear-power meltdown in March……..Analysts believe that ERA is unlikely to commit to the heap-leach project while Ranger continues to struggle with water-handling issues. The mine is surrounded by Kakadu National Park.

Rio Tinto on fire despite drenched Ranger, Sydney Morning Herald, Barry Fitzgerald, July 14, 2011“…….Water-handling issues at ERA’s Ranger mine in the Northern Territory have savaged the operation’s production levels. In the June half, production collapsed by 65 per cent to 601 tonnes of the radioactive material….

ERA is still a fraction of the company it was in October last year when it shares were selling at $14.78. The value hit stands at more than $2 billion, most of which is worn by Rio as ERA’s 68 per cent shareholder. Like the rest of the uranium producers and explorers, ERA’s sharemarket rating has been hit by the fallout for uranium demand expectations from the Fukushima nuclear-power meltdown in March.

But the impact on cash flow from the temporary suspension of mining at Ranger to deal with the water issues has been more telling on the stock’s value. Operations at Ranger were suspended in January and resumed on June 14….

ERA is to spend $367 million on a water-management program at Ranger, increasing the height of the tailings dam and building a brine concentrator for accelerated evaporation of process water.

Analysts believe that ERA is unlikely to commit to the heap-leach project while Ranger continues to struggle with water-handling issues. The mine is surrounded by Kakadu National Park.

Question marks hang over ERA’s earlier plans to extend the life of Ranger beyond 2021 – the development of a heap-leach operation and the development of uranium mineralisation that sits beneath the Ranger 3 pit…..

http://www.smh.com.au/business/rio-tinto-on-fire-despite-drenched-ranger-20110713-1hdxs.html#ixzz1S02N9frY

July 13, 2011 - Posted by Christina Macpherson | business, Northern Territory, uranium