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Rio Tinto decides to keep Gove refinery open
Edited by : AL CIRCLE
1 min read
Rio Tinto PLC (RIO) said it will keep a loss making alumina refinery in Australia's remote Northern Territory open as it finalizes a deal with the local government to supply cheaper natural gas to the operation for the next decade.
Rio Tinto had been due to decide on the future of the Gove refinery by the end of last month as high heavy fuel-oil costs, coupled with a strong Australian dollar and low alumina prices made it difficult to compete in export markets.
The Northern Territory government agreed Monday to redirect enough gas to the refinery to keep it open. Rio Tinto said Wednesday it was now discussing with the federal government the construction of a 600 kilometer pipeline to carry the gas to the plant.
About 1,400 employees and contractors work at the Gove operation.
Rio Tinto had been due to decide on the future of the Gove refinery by the end of last month as high heavy fuel-oil costs, coupled with a strong Australian dollar and low alumina prices made it difficult to compete in export markets.
The Northern Territory government agreed Monday to redirect enough gas to the refinery to keep it open. Rio Tinto said Wednesday it was now discussing with the federal government the construction of a 600 kilometer pipeline to carry the gas to the plant.
About 1,400 employees and contractors work at the Gove operation.
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