re Uranium:
PR re ERA.asx (Energy Resources of Australia)-- delay in production. Not good news for ERA.asx, but probably good news for other Uranium stocks, as in the near term this can be expected to contribute to upward pressure on spot prices:
"ERA declares force majeure after heavy rains
16:29, Wednesday, 7 March 2007
Sydney - Wednesday - March 7: (RWE Australian Business News) - A
tropical low-pressure system which led to the formation of cyclone George resulted in almost 850 millimetres of rain falling over EnergyResources of Australia Ltd's (ASX code: ERA) Ranger operation in the seven days to March 4. In one 72-hour period alone, a total of 750 millimetres fell. The area has received 1600 millimetres to date this year, which is above the total annual average rainfall.
ERA has declared force majeure on its sales contracts as a
result of the effect of the rainfall on production at the Ranger mineand processing plant. As advised on March 1, mining operations ceased on February 27, as is normal practice during high rainfall, and the plant was shut down in a planned manner on February 28.
The mine has restarted operations today and the processing plant
is expected to restart within the next week. First-quarter production is estimated to be between 20 and 30 per cent lower than in the corresponding period last year. The impact of the water level in the operating pit is still being assessed but production will be hit in the second half of 2007.
In spite of the high rainfall, water inventories at the mine
site have been managed effectively and there has been no adverse
environmental impact. Access to and from the Ranger mine and the nearby township of Jabiru remains restricted by highway closures and load limitations due to the widespread flooding in the region."
Steve
AI
