Energy Resources of Australia Ltd has announced that it will not continue development of the Ranger 3 Deeps project in Australia's Northern Territory. It blamed the poor uranium market conditions and project economics.
ERA said 11 June, that the Ranger 3 Deeps project will not proceed to final feasibility study in the current operating environment.
"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," ERA said.
"Secondly, having finalised and considered the prefeasibility study, the economics of the project require operations beyond the current Ranger Authority, which expires in 2021," it added.
In a separate statement, majority shareholder Rio Tinto said that after careful consideration...it does not support any further study or the future development of Ranger 3 Deeps due to the project's economic challenges.
But Rio Tinto said it recognises the importance of ongoing rehabilitation work at the Ranger mine site, which is surrounded by the World Heritage-listed Kakadu National Park. Rio Tinto said it is engaged with ERA on a conditional credit facility to assist ERA to fund its rehabilitation programme, should additional funding be required.
In the meantime, ERA said it will continue to process its stockpiles and meet obligations to its customers.