Energy Resources of Australia (ERA)

Shares / Stock Code

ERA

Stock Exchange / Sharemarket

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Energy Resources of Australia (ERA) is one of the world’s leading uranium producers. The company produces 10 per cent of the world's uranium demand. ERA is actively involved in the mining, processing and selling of uranium, and catering for environmental consulting services by EWL Sciences Pty Ltd. Energy Resources of Australia was listed on the Australian Stock Exchange (ASX) in 19 November, 1980. Energy Resources of Australia main operating divisions include uranium and consulting. ERA is geographically distributed across Asia, United States and Europe. The company’s principal asset is Ranger Mine project located in the Kakadu in the Northern Territory, providing approximately 6% of the western world's Uranium demand. The Company also has an ore treatment plant at Ranger, and an electric power plant that powers the mine.

ERA is one of the very few and largest pure uranium mining companies listed in the world. This has provided the Company with the advantage of cost savings from specialisation but risk holds where fluctuations in demand and uranium prices occur. The company mostly sells uranium under long-term contract agreements, with prices much higher than the spot price.

Energy Resources of Australia History

Energy Resources of Australia (ERA) began mining and listed on the Australian Stock Exchange in 1980. In 1969 the Ranger ore bodies were discovered by joint venturers Electrolytic Zinc Company of Australasia Ltd (EZ) and Peko-Wallsend Operations Limited (Peko). In 1979 the Commonwealth Government took over half the ownership of the ore bodies. In 1975, the Ranger Uranium Environmental Inquiry (Fox Inquiry) was founded. In1977, the company presented final report which discussed that uranium mining can be carried out. The same year Company entered into an agreement concerning mining, with the Northern Land Council (NLC), representing the interests of the Aboriginal owners of the area. ERA started the mining of Ranger Pit #1 orebody in May 1980, using open cut methods with the first drum of uranium oxide produced on 13 August 1981. The Company completed the mining of Ranger Pit #1 orebody in December 1994. ERA mined around 19.78 million tonnes of ore at an average grade of 0.321% in 1994. The Company received a final approval to mine Ranger Pit #3 orebody from the Northern Territory Government in May 1996.

In 1997 expansion of ERA's Ranger plant was accomplished in order to increase production capacity to approximately 5,000 tonnes of U3O8 per annum. Rio Tinto is the majority shareholder of the company with the acquirement of North Ltd in 2000. The Company announced an increase in Ranger mine’s reserves, adding six years to the predicted operational life of Ranger, which has now increased to 2020.