ERA Considers Expansion of Ranger Uranium Mine

According to CEO Rob Atkinson, Energy Resources of Australia (ASX:ERA) has one of the largest uranium resources under its existing open pit mine. Atkinson is confident that extensive drilling for the last three years yields a 34 tonne resource which will be exhausted until 2012.

The company has decided to suspend its operations at the Ranger mine in Kakadu Park due to heavy rains, but Atkinson is confident that the company can manage its current problems with 30 years of experience in the industry. Other mining projects will continue after the company has exhausted its resources in the open pit mine.

ERA will have a 12 week shutdown of its processing plants but operations are now closed until late July. Last week the company cut forecast down to 37 percent production in 2011 from 3800 tonnes to 2400 tonnes. A full year loss ranging between $30 to $50 is also expected.

Atkinson stays positive stating on ABC's Inside Business Program that: "We do believe we've got very good projects. But at this point in time it is important for the company to take stock, to review in particular its costs, to review its priorities, and one of the large priorities that we simply must deal with is around water management and getting water treatment up and running."