Energy Resources Of Australia 1Q Uranium Output Down 27% On Year

Energy Resources of Australia Ltd. (ERA.AU) said Tuesday first quarter uranium output from its Ranger mine in Australia's Northern Territory was down 27% on year to 888 metric tons.

The Rio Tinto Ltd. (RTP) subsidiary said in a statement that average ore grades processed during the quarter of 0.17% uranium were down 41% on the previous corresponding period.

Material mined also fell 60% on year and ERA said this was mainly due to precautionary work on an area of instability on the south wall of the Ranger open pit and seasonal weather impacts.

ERA had previously indicated it was expecting to experience lower grades in the first half of 2010 and the miner said it expects second quarter output to be in line with the first quarter.

The Darwin-based miner had previously given guidance that average realised sales prices in 2010 were expected to be similar to 2009, but said Tuesday that softer market conditions now looked set to have an influence on prices in the first half.

-By Alex Wilson, Dow Jones Newswires: 613-9292-2094; [e-mail]