Mining

25 July 2002

36% Drop in Profits Signals No Future in Rio Tinto's Kakadu Uranium mine

Kakadu uranium miner Energy Resources of Australia, which is majority owned by Rio Tinto, yesterday announced a further 1/3 drop in after tax profits for the 6 months ending June 30 in a report to the Australian Stock Exchange. The report also notes that no dividends will be paid to shareholders due to the low level of profit, which stands at just $3.3 million for the 6 months. This announcement follows a similar result in January of this year when profit falls of 66% were recorded.

As well as falling profits, the company is battling a long-standing community perception problem through its pursuit of the controversial Jabiluka proposal which has now been stalled for over two years.

Australian Conservation Foundation Nuclear Campaigner Dave Sweeney said, "This is yet another nail in the coffin of an outdated and unsafe industry. It has been very clear for a long time that ERA is not welcome in Kakadu and it is now apparent that the miner is not particularly welcome on the international uranium market either"

Coordinator of the Environment Centre of the Northern Territory, Kirsten Blair said "Falling uranium prices and increasing international community opposition to all stages of the nuclear cycle have certainly contributed to this huge drop in profits. The writing is on the wall for ERA and Rio Tinto, it is time they took the hint and left Kakadu once and for all".

Contact
Dave Sweeney 0408 317 812
or
Kirsten Blair 08 8981 1984 / 8985 3645
Email: ecnt@octa4.net.au

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