Corporates: ERA, Woodside, Transpacific, Foxtel

The Rio Tinto subsidiary, Energy Resources of Australia (ERA) has increased its hoped for level of production of uranium oxide for 2012 to between 3200 and 3700 tonnes.

The revised forecast issued came as the uranium producer announced its March quarter operations review yesterday.

ERA had previously forecast annual uranium oxide production of 3000 to 3700 tonnes.

It said in yesterday report that it has lifted the forecast thanks to the earlier than estimated re-commencement of mining in the Ranger Pit 3.

"In light of the earlier than estimated re-commencement of mining in Ranger Pit 3, ERA has revised its production guidance and now expects production for 2012 to be within the range of 3,200 and 3,700 tonnes of uranium oxide, an increase from the previous guidance of 3,000 tonnes to 3,700 tonnes," the company said.

"However, production for 2012 remains highly dependent on the level of actual rainfall encountered for the remainder of the year."

"As a result of the weather conditions recently experienced at Ranger mine, ERA expects to be able to re-commence mining in Ranger Pit 3 by the end of April 2012, which is earlier than was estimated at the beginning of this year.

"Dewatering of the pit is scheduled for completion in July 2012.

"Until access to the high grade ore at the bottom of the pit is obtained following completion of dewatering, ERA advises that production for the June 2012 Quarter is expected to be around the level achieved in the March 2012 Quarter.

"On 30 March 2012, ERA announced the award of the contract for the construction of the boxcut and decline for the Ranger 3 Deeps Exploration Decline Project to Macmahon Holdings Ltd.

"Work on the construction of the box cut is scheduled to commence in May 2012 with the construction of the decline expected to commence in October 2012."

ERA said in the report that it will invest a total of $120 million in the Ranger 3 Deeps Exploration Decline Project to conduct close spaced underground exploration drilling and to explore areas adjacent to the Ranger 3 Deeps resource.

The Ranger 3 Deeps mineral resource contains an estimated 34,000 tonnes of uranium oxide.

ERA said it produced 612 tonnes of uranium oxide in the March 2012 Quarter was 612 tonnes.

"Production was 18% higher than the corresponding quarter in 2011 despite lower mill head grade.

"Production of uranium oxide in 2011 was significantly impacted by the suspension of processing operations from 28 January 2011 as a result of the extreme rainfall at the Ranger mine over the 2010/2011 wet season," the company said.

ERA shares ended 1.5c higher at $1.25 yesterday.

Woodside Petroleum said yesterday that it had secured government approval to delay its final decision on the future of the controversial $40 billion Browse gas hub at James Price Point in the Kimberley, region of WA by almost a year.

The company said revealed the plans yesterday in a statement to the ASX

The announcement follows Woodside's decision last December too try and push the final investment decision for the Kimberley site originally planned for mid-2012 out to the first half of 2013.

Federal resources and energy minister Martin Ferguson and WA Mines and Petroleum Minister Norman Moore have both approved the resource giant's delay request, Woodside announced to the share market this morning.

"The variation will allow time to better evaluate the outcomes of front-end engineering and design work and the results of the tender processes for the development's major contracts," Woodside stated.

"The revised timetable will also allow more time to complete necessary assurance activities."

Woodside's joint venture partners, which include BHP Billiton, Chevron, Shell and BP, are reported to be shy about using the James Price Point site, and have suggested other options, including the including the existing North West Shelf facilities at Karratha.

Woodside shares fell as much as 49 cents to $34.69, mostly due to weak global oil prices.

And the $2 billion takeover of regional Pay TV group, Austar is going ahead after Foxtel was cleared to complete the bid in the next month to six weeks.

The Australian Competition and Consumer Commission (ACCC) said it would not oppose the deal after accepting court-enforceable undertakings from Foxtel.

Austar shares ended up 4c at $1.52 yesterday after the announcement.

The undertakings, which last for 8 years, will stop Foxtel from buying exclusive internet protocol television (IPTV) rights for a range of TV shows and movies.

Foxtel also is banned from exclusively buying any movies delivered on a transactional video-on-demand basis (such as Quickflix or Netflix).

Foxtel will also be stopped from buying exclusive mobile rights to TV shows and movies where the rights are sought by competitors to combine with IPTV rights.

Austar shareholders last month voted to approve the deal and the ACCC approval was the last hurdle for the deal.

The deal will strengthen the control News Corp/News Ltd and Telstra have over the Pay TV sector in this country.

Foxtel is 50% owned by Telstra, 25% by News Ltd and 25% owned by Consolidated Media Holdings (55% owned by James Packer and 25% owned by Kerry Stokes).

"By reducing content exclusivity, the undertakings will lower barriers to entry and promote new and effective competition in metropolitan and regional telecommunications and subscription television markets," ACCC chairman Rod Sims said in a statement.

"Taking into account the undertaking which has been offered by Foxtel, the ACCC is satisfied that the proposed acquisition is unlikely to substantially lessen competition."

Consolidated Media said in a statement that it will contribute as much as $225 million to Foxtel to assist the takeover.

Austar and Telstra both said in separate statements that they welcome the ACCC's decision.

Based on the current timetable, Austar said yesterday expects Foxtel to take ownership of the company late next month.

Shares in Telstra were steady at $3.35, as were shares in Cons Media which ended at $3.05.