Diesel deal for Nhulunbuy joint venture

A small Aboriginal organisation in eastern Arnhem Land has helped secure a $160 million contract to supply diesel fuel to the Gove aluminium refinery.

The tender to transport and distribute 21 million litres of diesel to Nhulunbuy, which was offered by Pacific Aluminium, was won by a joint venture between the Bunuwal Group and Cambridge Gulf Limited.

It's expected the deal will create several full-time jobs for the local community, as well as training and development opportunities for those employees recruited.

Cambridge Gulf Limited chief executive officer Tony Chafer says the contract is an expansion of CGL's similiar operations already existing in the Kimberley.

"We really wanted to take our brand out somewhere else and try a different area," he said.

"We believe in the benefit of involving local communities...and to have an advantage we really wanted to align with a local group."

While the Gove processing facility is moving away from sulfur fuel oil to operating on gas, machinery operating at the refinery will still require diesel.

Bunuwal Investments chief executive officer Stuart MacLean says securing the contract was a major achievement for the small organisation.

"Essentially, we work out of a pretty small office in a remote Aboriginal community.

"To go toe-to-toe with some oil and fuel giants of the world and to come out a winner has been a huge achievement," he said.

The first shipment of diesel to Gove under the new contract is expected to arrive in three weeks.