Energy Resources of Australia drops plan for deep underground uranium mine at Ranger

Ranger-3Uranium miner Energy Resources Australia pulls plug on 3 Deeps expansion, ABC News 11 June 15   Uranium miner Energy Resources of Australia (ERA) will not proceed with its proposed 3 Deeps expansion project at the present time, the company has announced to the stock exchange.

In a statement, the company said the uranium market has not improved like ERA had previously expected and there is uncertainty as to what prices would do in the future.

The company also said the mine only had the authority to operate until 2021, and the economics of the project required certainty beyond that point. Those conditions meant ERA would not proceed to a final feasibility study at this time, the statement said. ERA will continue to “process stockpiles and meet obligations to its customers”, the statement said.

The 3 Deeps expansion would have seen the Ranger Uranium Mine commence underground operations for the first time. Its current operations are open-cut.

ERA said it had engaged its major shareholder, Rio Tinto, about funding to rehabilitate the mine site, which is completely ensconced by Kakadu National Park.

The company previously said rehabilitation was funded under its current business plan, but if the 3 Deeps expansion did not go ahead it would require another source of funding to pay for all of the rehabilitation works…… http://www.abc.net.au/news/2015-06-11/energy-resources-australia-pulls-plug-on-3-deeps-expansion/6540046

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