www.ntnews.com.au
Rio Tinto needs more time to consider NT Government's gas offer
Edited by : AL CIRCLE
2 min read
Pacific Aluminium won't commit to the struggling Gove alumina refinery - claiming it now needs even more time to consider the NT Government's gas offer.
The company's Canada-based chief executive Phillip Strachan flew into Darwin on Monday to hold crucial face-to-face talks with Chief Minister Adam Giles.
High-level negotiations were shelved last month so the Rio Tinto subsidiary could "ensure the discussion is valuable to both of us".
The latest official line is that the company needs more time to make a thorough assessment of the government's gas supply offer.
Within the Territory there is a growing fear Rio Tinto's stalling means it is considering walking away from the underperforming refinery that provides an economic lifeline to the East Arnhem town of Nhulunbuy.
Mr Giles put it bluntly: "Talks will continue but the ball is in Rio Tinto's court."
The Territory's latest offer is to provide 178 petajoules of cheap gas to the refinery, with an additional 78 petajoules coming from Santos Energy.
Mr Giles said he advised the company at the meeting on Monday that another 30 petajoules of gas could be made available in 2015 by an energy company.
"We continue to work tirelessly with the Federal Government and various energy companies to find the gas that Rio Tinto requires to keep the Gove refinery open," Mr Giles said.
Rio Tinto would need to commit to operating the refinery for the next 20 years.
Subsidiary Pacific Aluminium said in a statement the company appreciated the opportunity to discuss Mr Giles' gas supply proposal.
"This is a complex issue and it is important we take the time needed to make a thorough assessment," the statement said.
"We recognise this is a significant issue for our employees, the community of Nhulunbuy, traditional owners and the Northern Territory. We will advise our employees, the local community and other stakeholders of any decisions as soon as we are able to do so."
In the meantime, locals are growing anxious.
About 1500 of Nhulunbuy's 4000 people are employed in jobs linked to the refinery and associated bauxite mining. The economic impact of losing the refinery would also be catastrophic for local business.
The company's Canada-based chief executive Phillip Strachan flew into Darwin on Monday to hold crucial face-to-face talks with Chief Minister Adam Giles.
High-level negotiations were shelved last month so the Rio Tinto subsidiary could "ensure the discussion is valuable to both of us".
The latest official line is that the company needs more time to make a thorough assessment of the government's gas supply offer.
Within the Territory there is a growing fear Rio Tinto's stalling means it is considering walking away from the underperforming refinery that provides an economic lifeline to the East Arnhem town of Nhulunbuy.
Mr Giles put it bluntly: "Talks will continue but the ball is in Rio Tinto's court."
The Territory's latest offer is to provide 178 petajoules of cheap gas to the refinery, with an additional 78 petajoules coming from Santos Energy.
Mr Giles said he advised the company at the meeting on Monday that another 30 petajoules of gas could be made available in 2015 by an energy company.
"We continue to work tirelessly with the Federal Government and various energy companies to find the gas that Rio Tinto requires to keep the Gove refinery open," Mr Giles said.
Rio Tinto would need to commit to operating the refinery for the next 20 years.
Subsidiary Pacific Aluminium said in a statement the company appreciated the opportunity to discuss Mr Giles' gas supply proposal.
"This is a complex issue and it is important we take the time needed to make a thorough assessment," the statement said.
"We recognise this is a significant issue for our employees, the community of Nhulunbuy, traditional owners and the Northern Territory. We will advise our employees, the local community and other stakeholders of any decisions as soon as we are able to do so."
In the meantime, locals are growing anxious.
About 1500 of Nhulunbuy's 4000 people are employed in jobs linked to the refinery and associated bauxite mining. The economic impact of losing the refinery would also be catastrophic for local business.
Previous article
Allen & Overy advises CPI International Minerals on world-scale alumina project
Next articleAneka Tambang moves closer to commissioning alumina plant in Indonesia
Grow with
AL Circle
