http://www.bloomberg.com/apps/news?p...efer=australia
Energy Resources Says Uranium Output Declines 28% (Update1)
By Tan Hwee Ann
April 16 (Bloomberg) -- Energy Resources of Australia Ltd., which produces more than a 10th of the world's uranium supply, said production of the fuel fell 28 percent in the first quarter from a year ago, due to heavy rain.
Output of uranium dropped to 1,006 tons for the three months ended March 31, Darwin-based Energy Resources said today in a statement to the Australian Stock Exchange.
Energy Resources, controlled by Rio Tinto Group, last month said it may miss some deliveries after heavy rain temporarily halted production and said first-quarter output may fall as much as 30 percent. Uranium prices have more than doubled in the past year on rising demand from power utilities and a delay in building a mine in Canada.
``The elevated water level in the mine will restrict access to ore in the second half of 2007 and into 2008,'' the company said in the statement. The company had on April 2 said 2007 production will match 2006, and fall between 25 percent and 35 percent in 2006.
The company drilled for more uranium to the east of its current pit, inside a road leading to the mine, it said.
To contact the reporter on this story: Tan Hwee Ann in Melbourne at hatan@bloomberg.net ;
Last Updated: April 15, 2007 18:55 EDT