The ERA of uranium mining is over

The freefall in the price of uranium since the Fukushima nuclear disaster - a continuing crisis directly fuelled by Australian uranium - has seen ERA post losses of over $A 350 million in the past two years and there have been over two hundred prior leaks, spills and incidents at the Ranger mine. There are severe and unresolved problems with the management of contaminated water and mine wastes and equipment and infrastructure is aging and failing. Metal and management fatigue is a dangerous combination, especially at a uranium mine in a monsoonal tropical environment inside a World Heritage listed national park.

Despite this radioactive reality ERA is continuing to press ahead with plans for new underground mining, the so called Ranger 3 Deeps project. Work on the plan is progressing despite the halt on mineral processing, growing concerns over the company's lack of capacity and persistent system failures.

The 3 Deeps development work is advancing under the guise of exploration even though the infrastructure currently being built is designed to be used for mining and ERA is expected to seek formal federal approval for mining later this year. In the context of a depressed commodity price, an under-performing operation and a narrowing window for operations ERA's continued pursuit of the 3 Deeps project makes little sense unless seen in the context of the company's long held and continuing dream - a new uranium mine at the nearby Jabiluka deposit.

Like the undead in the late night horror movie the Jabiluka plan gets routinely revisited and the hope remains alive in the ERA boardroom. The history of uranium mining in Kakadu has been one of broken pipes and broken promises. Sustained Aboriginal, environmental and wider community opposition and resistance has seen the development of Jabiluka halted and any prospect of mining at Koongarra averted.

The chapter is closing on uranium mining in Kakadu and while this is all ERA do it is only a small part of parent company Rio Tinto's global game - but a part on which Rio will be closely watched and long judged. ERA's shareholders might be the ones asking the questions this week but it will be Rio Tinto who needs to answer and give effect to its corporate responsibility rhetoric by commencing a considered and comprehensive Ranger exit strategy.