The Australian
Northern Territory gas plan to be considered on Monday
Edited by : AL CIRCLE
2 min read
The Northern Territory cabinet to decide on Monday whether the government should release gas to Rio Tinto Ltd in a bid to save an outback town.
In a statement from London on Thursday, NT Chief Minister Terry Mills said he was continuing negotiations with Rio Tinto managing director Sam Walsh as he tries to convince the mining giant to keep open its Gove alumina refinery in east Arnhem Land.
"It is expected a decision will be made concerning the Territory's energy security and gas availability for the Gove operation," Mr Mills said.
He said the cabinet discussions would include options for securing the future of Nhulunbuy and releasing 300 petajoules of gas to the refinery over ten years.
The refinery has been making losses of about $US30 million ($A29.2 million) each month, and an internal review indicated it should be closed temporarily, a move likely to devastate the satellite town of Nhulunbuy. Rio Tinto subsidiary Pacific Aluminium has hinted that if the plant were converted to gas, and the NT unconditionally guaranteed 10 years' supply, it would keep the refinery open.
On Friday, Dave Suter from the Nhulunbuy Chamber of Commerce and Industry said his group had been very pleased with the tone coming from Mr Mills.
"We are hoping that the issue can be resolved once and for all, and we commend him for the effort he is putting in," Mr Suter said.
Last month Mr Mills said he would not put the NT's energy security at risk in any deal with Rio Tinto. "We are taking this very seriously. We are not blinking; we are serious about it," he said in January.
In a statement from London on Thursday, NT Chief Minister Terry Mills said he was continuing negotiations with Rio Tinto managing director Sam Walsh as he tries to convince the mining giant to keep open its Gove alumina refinery in east Arnhem Land.
"It is expected a decision will be made concerning the Territory's energy security and gas availability for the Gove operation," Mr Mills said.
He said the cabinet discussions would include options for securing the future of Nhulunbuy and releasing 300 petajoules of gas to the refinery over ten years.
The refinery has been making losses of about $US30 million ($A29.2 million) each month, and an internal review indicated it should be closed temporarily, a move likely to devastate the satellite town of Nhulunbuy. Rio Tinto subsidiary Pacific Aluminium has hinted that if the plant were converted to gas, and the NT unconditionally guaranteed 10 years' supply, it would keep the refinery open.
On Friday, Dave Suter from the Nhulunbuy Chamber of Commerce and Industry said his group had been very pleased with the tone coming from Mr Mills.
"We are hoping that the issue can be resolved once and for all, and we commend him for the effort he is putting in," Mr Suter said.
Last month Mr Mills said he would not put the NT's energy security at risk in any deal with Rio Tinto. "We are taking this very seriously. We are not blinking; we are serious about it," he said in January.
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