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Federal Government confirms assistance to Gove Alumina refinery
Edited by : AL CIRCLE
1 min read
The Minister Martin Ferguson confirmed today that the Commonwealth Government through its Export Finance and Insurance Corporation is now undertaking due diligence for the provision of a loan guarantee to support the financing of a gas pipeline from Katherine to the Gove alumina refinery in the Northern Territory.
The refinery, owned by Rio Tinto subsidiary Pacific Aluminium, currently operates its boilers on expensive fuel oil. With the company threatening to close the refinery due to its poor cost structure and low alumina prices, both the Northern Territory and Federal Government intervened offering to help supply the refinery with lower cost natural gas.
Rio Tinto is keeping the refinery operating while it undertakes a feasibility study into converting the refinery to gas.
The refinery, owned by Rio Tinto subsidiary Pacific Aluminium, currently operates its boilers on expensive fuel oil. With the company threatening to close the refinery due to its poor cost structure and low alumina prices, both the Northern Territory and Federal Government intervened offering to help supply the refinery with lower cost natural gas.
Rio Tinto is keeping the refinery operating while it undertakes a feasibility study into converting the refinery to gas.
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