New uranium mine to boost ERA ENERGY Resources of Australia (ERA) hopes to re-establish itself as a significant uranium producer by building a new mine in the Northern Territory. ERA chief executive Rob Atkinson says approval to build an underground uranium mine would extend the life of its declining and unprofitable open-cut Ranger mine in Kakadu National Park. "Gaining approval for a viable Ranger 3 Deeps underground mine will re-establish ERA as one of the premier producers of uranium at a time that we expect uranium markets to start tightening and prices improving," he told the company's annual general meeting in Darwin. ERA, whose majority owner is Rio Tinto, is restructuring its business and cutting costs to cope with lower production levels and revenues. It recently said prices falling to below $US50 a pound were preventing new projects from entering production. The company is trying to save $150 million by the end of 2014. Chairman Peter McMahon said the Ranger 3 Deeps deposit would allow ERA to continue to play a role as a global energy provider. "While the short-term outlook for the uranium market is challenging, the longer term picture for uranium prices is brighter," he said. ERA expects to commence underground exploration drilling of the Ranger 3 Deeps exploration decline in the second quarter of 2013. It believes demand for uranium would continue to increase as China builds 40 to 50 new nuclear power plants this decade. ERA has suffered since Japan's nuclear disaster in 2011, posting a full year loss of $219 million for its 2012 financial year.