Rainfall to impact ERA production

Uranium miner Energy Resources of Australia Ltd (ERA) has forecast a significant decrease in production in 2008, following heavy rainfall at the Ranger mine.
ERA says production in 2008 is likely to be 25 to 35 per cent lower than that in 2006, when the uranium miner produced 4,748 tonnes of yellowcake.
The uranium miner has also forecast an impact to production in 2007, particularly in the second half of the year.
ERA had to shutdown mining operations and the process plant in late February following heavy monsoonal rain.
"The shutdown and re-start of the processing plant resulted in the loss of approximately 300 tonnes of uranium oxide production," ERA said.
"In addition, the elevated water level in the mine resulting from the high rainfall will restrict access to ore in the second half of 2007 and into 2008."
ERA said stockpiled high-grade ore would be processed throughout the year and production in 2007 is likely to be similar to 2006.
"ERA has identified a number of potential opportunities to reduce the impact of the weather event, including accelerating the treatment and disposal of water," ERA said.
"These options are currently being evaluated and in most cases regulatory approvals will be required."
ERA was forced to declare force majeure on its sales contracts as a result of the heavy rainfall.
The Ranger mine is no stranger to weather related disruptions, with tropical cyclone Monica causing a longer-than-planned acid plant shutdown last year, impacting production.
ERA is 68.4 per cent owned by major mining house Rio Tinto Ltd.
By 1503 AEST Monday, ERA shares had dipped $1.23 to $26.57.
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