The Austrralian
Chief Minister to help co-ordinate a new gas pipeline to Gove bauxite mine
Edited by : AL CIRCLE
2 min read
Northern Territory Chief Minister Terry Mills says his government will do all it can to help co-ordinate a new gas pipeline to a bauxite mine in Arnhem Land.
The Gove bauxite mine and alumina refinery are the chief employers in the nearby town of Nhulunbuy in Arnhem Land but have been making a loss for operator Pacific Aluminium, a subsidiary of mining giant Rio Tinto Ltd.
There has been speculation Rio may move to close down its Gove operations, which analysts say lost about $US115 million ($A111.71 million) in the first half of this year.
On Tuesday, Mr Mills said the NT government was committed to finding a way for the Gove operations to continue. "We will beef up our efforts to build the case for gas being delivered to Gove," Mr Mills said.
He said converting the Gove refinery to gas would improve the plant's economic and environmental position and underpin the operating life of the refinery in the long term.
Mr Mills said the government would not pay for a new gas pipeline to Gove but would play a co-ordinating and strategic role to help the project go ahead.
Building the new pipeline would likely cost about $500 million, with another $500 million needed to upgrade facilities at Gove, he said.
"It has to pay for itself, ultimately," Mr Mills said.
The Gove refinery contributes about $500 million towards the NT's gross regional product each year.
"The Gove facility is about people, and any downgrading of existing operations could potentially devastate towns and communities in the East Arnhem region," Mr Mills said.
A strategic action group investigating the issue is due to meet on Friday.
About 3800 people live in Nhulunbuy.
The Gove mine working at capacity can produce 8.5 million tonnes per annum (Mtpa) of bauxite and the refinery can produce 3.8Mtpa of alumina.
The Gove bauxite mine and alumina refinery are the chief employers in the nearby town of Nhulunbuy in Arnhem Land but have been making a loss for operator Pacific Aluminium, a subsidiary of mining giant Rio Tinto Ltd.
There has been speculation Rio may move to close down its Gove operations, which analysts say lost about $US115 million ($A111.71 million) in the first half of this year.
On Tuesday, Mr Mills said the NT government was committed to finding a way for the Gove operations to continue. "We will beef up our efforts to build the case for gas being delivered to Gove," Mr Mills said.
He said converting the Gove refinery to gas would improve the plant's economic and environmental position and underpin the operating life of the refinery in the long term.
Mr Mills said the government would not pay for a new gas pipeline to Gove but would play a co-ordinating and strategic role to help the project go ahead.
Building the new pipeline would likely cost about $500 million, with another $500 million needed to upgrade facilities at Gove, he said.
"It has to pay for itself, ultimately," Mr Mills said.
The Gove refinery contributes about $500 million towards the NT's gross regional product each year.
"The Gove facility is about people, and any downgrading of existing operations could potentially devastate towns and communities in the East Arnhem region," Mr Mills said.
A strategic action group investigating the issue is due to meet on Friday.
About 3800 people live in Nhulunbuy.
The Gove mine working at capacity can produce 8.5 million tonnes per annum (Mtpa) of bauxite and the refinery can produce 3.8Mtpa of alumina.
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