Nhulunbuy will know today if its main employer, Rio Tinto’s Gove alumina refinery, will stay open.
The Australian Financial Review reports that executives from Rio Tinto, who run Gove through their Pacific Aluminium subsidiary, will brief Gove’s employees on Wednesday morning.
AAP reported this morning that NT chief minister Terry Mills, who has agreed to secure a ten-year gas supply from the territory to the refinery, will make an announcement on Wednesday today in parliament
Mills announced on Monday that cabinet had approved the release of gas from its Power and Water Corporation contract, meaning the his government would take on a $1 billion risk on gas supply.Converting the refinery to gas is crucial to making it run more economically. It is currently powered by diesel. It is also estimated to lose $30 million each month.
Rio has said that it would only consider converting the site to gas if a 10-year supply could be ensured. It has also asked the federal government to underwrite an $800 billion Wadeye-to-Gove pipeline, which would run over 1,000 km in length.
The refinery is the territory’s biggest private employer, and its closure would come with a loss of over 1,500 jobs. It produces over 8.2 million tonnes of bauxite and 2.65 million tonnes of alumina per year.
Breaking news: Mills has announced the refinery will stay open. More to follow.