low production for the coming quarter, page-2

ERA declares force majeure after heavy rains
16:29, Wednesday, 7 March 2007

Sydney - Wednesday - March 7: (RWE Australian Business News) - A
tropical low-pressure system which led to the formation of cyclone
George resulted in almost 850 millimetres of rain falling over Energy
Resources of Australia Ltd's (ASX code: ERA) Ranger operation in the
seven days to March 4.
In one 72-hour period alone, a total of 750 millimetres fell.
The area has received 1600 millimetres to date this year, which
is above the total annual average rainfall.
ERA has declared force majeure on its sales contracts as a
result of the effect of the rainfall on production at the Ranger mine
and processing plant.
As advised on March 1, mining operations ceased on February 27,
as is normal practice during high rainfall, and the plant was shut down
in a planned manner on February 28.
The mine has restarted operations today and the processing plant
is expected to restart within the next week.
First-quarter production is estimated to be between 20 and 30
per cent lower than in the corresponding period last year.
The impact of the water level in the operating pit is still
being assessed but production will be hit in the second half of 2007.
In spite of the high rainfall, water inventories at the mine
site have been managed effectively and there has been no adverse
environmental impact.
Access to and from the Ranger mine and the nearby township of
Jabiru remains restricted by highway closures and load limitations due
to the widespread flooding in the region.