Energy Resources of Australia Shelves its Ranger 3 Deeps Project

Energy Resources of Australia (ASX:ERA) announced that it has decided not to proceed to final feasibility study on its Ranger 3 Deeps project in the current operating environment.

As quoted in the press release:

In the meantime ERA will continue to process its stockpiles and meet obligations to its customers. This decision has been driven primarily by two key factors. First, the Board’s view is that the uranium market has not improved as ERA previously expected and there is uncertainty regard the uranium market’s direction in the immediate future.

Secondly, having finalised and considered the Prefeasibility Study, the economics of the project require operations beyond the current Ranger Authority, which expires in 2021. ERA has engaged with its major shareholder, Rio Tinto, regarding funding support for rehabilitation, should additional funding ultimately be required. ERA has also commenced discussions with representatives of the Traditional Owners and the Commonwealth Government regarding a possible extension to the Ranger Authority.

ERA will continue to conserve cash until it has greater certainty in relation to the Authority extension. This would allow ERA to revisit the project’s economics over time.

Click here to read the full Energy Resources of Australia (ASX:ERA) press release.