Antinuclear

Uranium price slump further reduces ERA sales

ERA uranium output slumps THE AUSTRALIAN JULY 13, 2016 Mill maintenance sharply reduced June quarter production by Ranger uranium miner Energy Resources of Australia.

Production for the period, characterised by a further fall in the already depressed spot price for uranium to $US26.40 a pound, slumped 18 per cent to 489 tonnes.

The 68 per cent-owned Rio Tinto subsidiary had been reduced to treating stockpiled material and was accumulating cash to cover the estimated rehabilitation cost of the mine, inside Kakadu, of more than $500 million.

Recently it reported it was holding cash of $433m, prompting Rio to offer a $100m credit facility to ensure rehabilitation costs were met…….

ERA had been planning to extend its mine life by developing the Ranger 3 Deeps deposit, but Rio and the traditional owners did not support the plan, meaning ERA’s existing Ranger authority to operate is set to end in 2021.

ERA has nevertheless preserved the option of an eventual development of Ranger 3 Deeps by committing to spending about $4m annually on care and maintenance of the exploration decline and related infrastructure.

The option was the key finding of the group’s strategic review, released in May, after it was clear the support of Rio and the traditional owners was not forthcoming.

Rio’s no-interest rehabilitation credit facility came with the condition that ERA did not seek to extend production at Ranger beyond 2020 by developing the Ranger 3 Deeps.

ERA previously said that while it expected to fully fund the rehabilitation, it might have to draw on the Rio funding in some situations…..http://www.theaustralian.com.au/business/companies/era-uranium-output-slumps/news-story/08e7df8b9a063dc6c8baa203d471f0ff

July 13, 2016 - Posted by Christina Macpherson | business, Northern Territory, uranium