uranium news

Doncha love the headline from this Sydney Morning Herald article about the uranium company Energy Resources of Australia?  Anyone would think that the company had wonderful prospects.   But readthe lines (you don’t need to read between the lines) – and you see the true picture –  colossal share price loss, closure of the Ranger open pit mine, and a laughable future prospect for their plan for an underground uranium mine.

From a share price of $18.22 in May 2009, the stock lost more than 90 per cent of its value to be languishing at $1.15 earlier this year, with the company’s future being seriously questioned. 

Kakadu’s miner for all seasons SMH, Peter Ker April 28, 2012 After three decades as a major uranium producer in Australia’s top end, Atkinson’s company Energy Resources of Australia is about to fill in its massive open pit and return the landscape to something resembling the nearby Kakadu National Park.

In a reversal of the typical path taken by mining companies, ERA is about to go from producer to explorer, gambling its future on the viability of a deposit deep beneath its existing operations….

… ERA has spent the past 30 years digging uranium from a small province surrounded on all sides by Kakadu National Park. The company operates here at the grace of the indigenous community, which has long been reluctant to see any more of its land developed for mining. The NT’s extraordinary wet seasons add another
challenge,….. On more than one occasion, heavy rains halted production for months at a time and threatened [did!]  to spill toxic tailings into the nearby environment. Other operational problems also caused delays, and they unfolded
against a backdrop of decline in the company’s flagship Ranger open pit, now reaching the end of its working life.
From a share price of $18.22 in May 2009, the stock lost more than 90 per cent of its value to be languishing at $1.15 earlier this year, with the company’s future being seriously questioned…… (more…)

Era adds A$251m to Ranger closure plan  By: Esmarie Swanepoel, Mining Weekly, 11th April 2012 PERTH   - The CEO of uranium miner Energy Resources of Australia (Era), Rob Atkinson on Wednesday told shareholders that the company had increased the provision for the closure of its Ranger mine, in the Northern Territory, from A$314-million to A$565-million, following a desktop review.

At the company’s annual general meeting, Atkinson said that the miner would continue investigating its closure plan during the remainder of 2012…… He noted that the revised plan would support a review of the rehabilitation cost estimate, later this year.

Spot Uranium Grafting, 9 News Finance, 13 April 12,    ”………Activity in general remains sluggish, and while two transactions were reported last week in the term market they were both pretty small by term market standards…

..Energy Resources of Australia managed a 5% price increase over the quarter but remains in thebalance. The company has elected to spend $120m to explore the underground potential at its premier Ranger mine in the northern territory, known as the Ranger Deeps project.

If ERA decides the Deeps is not a commercially viable proposition, Ranger is destined to quietly shut down. Merrills suggests known reserves are unlikely to last beyond this year and stockpiles would be gone in 3-4 years.
Meanwhile, Merrills has ceased coverage of Extract Resources post takeover and its impending de-listing this week.

The broker has also taken the opportunity to review its uranium price forecasts to account for weaker Japanese demand now apparent one year after Fukushima. The analysts’ 2012 spot price forecast falls to US$56.25/lb from US$58.50/lb and 2013 to US$67.50/lb from US$70.00/lb. Merrills’ long term price drops to US$63.00/lb from US$65.00/lb.  …
http://finance.ninemsn.com.au/newscolumnists/greg/8449091/spot-uranium-grafting

ERA tightens 2012 guidance,  Colin Jacoby , 10 April 2012 …The uranium miner Energy Resources of Australia  reported production of 612 tonnes of uranium oxide for the March quarter, down 41% from its December 2011 quarter production of 1030t.. The company was dogged by high rainfall at Ranger and access to high-grade ore was restricted due to the water level in the pit.

With ERA unable to access the high-grade ore located at the bottom of the pit, the ore milled during the quarter was sourced from stockpiled material. …  the company said 2012 production remained highly dependent on the level of rainfall for the remainder of the year.

Kakadu uranium miner faces growing criticism. ACF,  11 April 12, Mining at the troubled Ranger uranium operation in Kakadu has been described as dirty, dangerous and desperate by the Environment Centre NT and the Australian Conservation Foundation. The groups have used Energy Resources of Australia annual meeting today in Darwin to re-affirm their concerns about uranium mining inside the World Heritage listed Kakadu National Park.

”ERA’s open cut mine has seen over 150 leaks, spills and breaches; radioactive exposure to workers; mismanagement of water and a mine shutdown that resulted in a $150 million dollar loss last year. The mine continues to pose ongoing environmental risk to Kakadu and the creation of more unwanted and poorly managed radioactive waste,” said Environment Centre NT campaigner Cat Beaton.

“Much of that waste is stored in an overloaded tailings dam that continues to leak over 100,000 litres of contaminated water a day.” Continued Ms Beaton.

In recent years ERA’s controversial Ranger mine has been plagued by declining production, morale and profit, with operations severely impacted by severe weather events. The company is attempting to reverse this decline by moving away from open cut mining in favour of underground mining.

“ERA’s fortunes are in systemic decline and will not be turned around by a tunnel to nowhere,” said ACF nuclear campaigner Dave Sweeney. “In the shadow of Fukushima – which we know was fuelled by Australian uranium – we need an open assessment of the costs and consequences of the uranium trade, not piecemeal approvals of short term projects that generate long term risks and problems”. “Uranium mining is unclean and unsafe, and this industry remains contaminating and contested”. Concluded Mr. Sweeney.

ERA begging for $500m boost, The Age Barry FitzGerald October 13, 2011 THE fall from grace of Rio Tinto-controlled Energy Resources of Australia has become absolute, with the Ranger uranium miner going cap in hand to shareholders for $500 million in equity funding in a heavily discounted rights issue.