In 1991 the uranium spot market price dropped to approximately US$7/Ib
U308, a historical low in real terms and the short-term outlook for the
industry in the next five years was grim. At this time the Ranger operation was producing uranium concentrate
at its design capacity of approximately 3 000 tonnes/year. The loss of two
major long-term contracts owing to price and reduced power utility
demand due to excess inventories meant that the company could not
match production to sales. Continuance at this production level would
have resulted in a rapid buildup of product inventory and the tie-up of
significant cash reserves. After analysing various options, an innovative operating strategy was
devised such that production and sales were approximately balanced
without a significant impact on the unit production cost or a long term
effect on the plant or operation. A campaign mining/milling operation
commenced and approximately 40 per cent of the workforce were
retrenched. Multi-skilling of all employees was a critical aspect of ensuring a
successful outcome. This paper examines the strategy and reports on the success of the
operation two years after the restructuring exercise was effected in
November 1991.