ERA braces for more cost increases
PERTH (miningweekly.com) – The 2022 feasibility study into the rehabilitation of the Ranger uranium project, in the Northern Territory, has confirmed a A$368-million cost increase for the closure, bringing the total cost of completing the rehabilitation project to A$2.18-billion.
The new cost estimate falls within the A$1.6-billion and A$2.2-billion estimate previously made following an independent review of the rehabilitation project and was well above the 2019 cost estimate of A$973-million.
ASX-listed Energy Resources of Australia (ERA) said on Thursday that there were a number of other significant preliminary findings emerging from the 2022 feasibility study process, including a potential reassessment of the water model and rainfall models to predict the water treatment aspect of the project, possible additional costs in executing the subaerial capping method for Pit 3, a possible increase in the forecast cost associated with the movement of stockpiled materials back into Pit 3, and a revision to catchment conversion assumptions.
ERA said that these findings would require more analysis and studies to determine the size or likelihood of them occurring, but said that there was the risk that if suitable mitigations or alternative solutions could not be found, costs for the rehabilitation could exceed the A$1.6-billion to A$2.2-billion independent estimate.
In the half-year to June, ERA reported a net loss of A$331-million, with A$114-million spent on rehabilitation activities during the six months under review. At the end of June, the company had a rehabilitation provision of A$1.4-billion.
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