Half of Australian uranium miner's board quits after Rio shelves project

SYDNEY, June 22 (Reuters) - Half of the board at uranium miner Energy Resources of Australia (Other OTC: EGRAF - news) resigned on Monday, saying majority owner Rio Tinto (LSE: RIO.L - news) 's decision to abandon work on a major mine expansion made it difficult for the company to pursue its goals.

ERA's stock has plunged more than 70 percent since it said on June 12 that it would not proceed with the final development study for its Ranger 3 Deeps uranium project in northern Australia due to low uranium prices.

Uranium prices have tumbled since the March 2011 meltdown at Japan's Fukushima nuclear plant. Japan has idled its entire industry in response, exacerbating a worldwide supply glut.

Three ERA directors, including Chairman Peter McMahon, resigned, leaving the board with just three members, the company said in statement.

ERA, a separately listed division in which Rio Tinto holds a 68.4 percent stake, said a search for replacement directors had been approved.

Rio has said it may have to book a $300 million charge relating to its stake in ERA after the Ranger 3 project was shelved.

(Reporting by James Regan; Editing by Edwina Gibbs)