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Gove employees kept in the dark about new gas supply offer
Edited by : AL CIRCLE
2 min read
Pacific Aluminium knew early last month about the new gas supply offer - and didn't tell its workers.
The company acted as though surprised and disappointed by Chief Minister Adam Giles' announcement of a dual fuel plan on Friday.
It did not mention any uncertainty over gas in its community engagement meeting on July 16.
But the NT News has seen a letter from Federal Resources Minister Gary Gray's office - dated July 9 - that states discussions had been taking place with both Pacific Aluminium and Eni on the dual fuel approach.
Mr Giles said Pacific Aluminium had taken part in the decision-making process on the dual fuel option.
NT Minerals Council executive director Drew Wagner said the revised offer of gas to Gove had damaged trust in the Territory Government and may affect future investment.
Rio Tinto chief executive Sam Walsh believed he had an agreement with the NT Government to get access to 300 petajoules of cheap public gas in February and promised to keep the refinery open while the gas to Gove project progressed.
But Chamber of Commerce president Julie Ross said the broader business community appeared unaffected.
Several businesses said the NT Government had made the right decision after following due diligence, she said.
Opposition leader Delia Lawrie last night fronted a meeting of about 50 people at the Arnhem Club in Nhulunbuy on the Territory's northeast coast.
Federal Resources Minister Gary Gray will travel to the town this weekend to talk about the future of the aluminium refinery.
He urged the NT Government to go back to the original offer made by former chief minister Terry Mills.
Last month, Mr Gray wrote to Mr Giles emphasising the risks to the Commonwealth of underwriting $600 million in pipeline loans.
Financial modelling has showed that giving up half of the public's cheap gas supplies could cost taxpayers $3.2 billion.
Both Rio Tinto and Pacific Aluminium were asked yesterday whether they had ever guaranteed the refinery would continue to operate for 20 years - or if it was viable even with the original Mills Government offer.
Neither company would respond to the questions.
The company acted as though surprised and disappointed by Chief Minister Adam Giles' announcement of a dual fuel plan on Friday.
It did not mention any uncertainty over gas in its community engagement meeting on July 16.
But the NT News has seen a letter from Federal Resources Minister Gary Gray's office - dated July 9 - that states discussions had been taking place with both Pacific Aluminium and Eni on the dual fuel approach.
Mr Giles said Pacific Aluminium had taken part in the decision-making process on the dual fuel option.
NT Minerals Council executive director Drew Wagner said the revised offer of gas to Gove had damaged trust in the Territory Government and may affect future investment.
Rio Tinto chief executive Sam Walsh believed he had an agreement with the NT Government to get access to 300 petajoules of cheap public gas in February and promised to keep the refinery open while the gas to Gove project progressed.
But Chamber of Commerce president Julie Ross said the broader business community appeared unaffected.
Several businesses said the NT Government had made the right decision after following due diligence, she said.
Opposition leader Delia Lawrie last night fronted a meeting of about 50 people at the Arnhem Club in Nhulunbuy on the Territory's northeast coast.
Federal Resources Minister Gary Gray will travel to the town this weekend to talk about the future of the aluminium refinery.
He urged the NT Government to go back to the original offer made by former chief minister Terry Mills.
Last month, Mr Gray wrote to Mr Giles emphasising the risks to the Commonwealth of underwriting $600 million in pipeline loans.
Financial modelling has showed that giving up half of the public's cheap gas supplies could cost taxpayers $3.2 billion.
Both Rio Tinto and Pacific Aluminium were asked yesterday whether they had ever guaranteed the refinery would continue to operate for 20 years - or if it was viable even with the original Mills Government offer.
Neither company would respond to the questions.
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