By Ross Kelly
SYDNEY--Uranium producer Energy Resources of Australia Ltd.
expects a first-half loss of up to 140 million Australian dollars
(US$130 million) after a radioactive leak halted activities at its
Ranger operation in the Northern Territory.
The company, which is 68% owned by Rio Tinto PLC, said it
expects to restart operations at Ranger progressively beginning
Thursday after cleanup and regulator approval.
The leak of about 1 million liters of contaminated slurry, which
occurred in December, was caused by toxic material eating through a
steel tank involved in the process of refining ore.
Ranger is on land owned by the Mirarr indigenous people and
surrounded by the world-heritage-listed Kakadu National Park.
Investigations by authorities found the leak was contained within
the mine site.
The company had already stopped mining uranium at the Ranger
operation in late 2012 after its ore was depleted. But it continued
to process stockpiled ore while it studied the feasibility of
digging a new underground pit there called Ranger 3 Deeps.
The company expects a loss of A$120 million and A$140 million
for the six months through December, in large part due to costs
associated with the suspension of ore processing. That compares to
a A$53.4 million loss in the year-earlier period.
Energy Resources of Australia has run up a string of losses in
recent years, dogged by low uranium prices, disappointing output
volumes and costs associated with the rehabilitation of the old
mine site.
It expects to produce between 1,100 and 1,500 tons of yellow
cake in the year through December.
Write to Ross Kelly at ross.kelly@wsj.com
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