Struggling uranium market pushes ERA to another impairment

Image: Energy Resources of Australia

Rio Tinto subsidiary Energy Resources of Australia (ERA) is anticipating it will report a $231 million impairment for 2016 as lower uranium prices continue to impact the company.

In an ASX announcement, ERA, owner of the Ranger uranium mine in the Northern Territory, stated that it expected to record an impairment of about $70 million in the second half of 2016, adding to the $161 million impairment reported in the first half of the year.

“The impairment is a result of a further decline in the uranium oxide spot price in the second half of 2016 and consequent downgrading of near-term uranium oxide price forecasts,” ERA reported.

“As the impairment is a non-cash item, it does not have any impact on cash flow or ERA’s existing operations.”

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