Rio pressed on refinery
Federal and Northern Territory authorities have been urging Rio to keep the refinery open, because it is largely responsible for sustaining the Nhulunbuy economy.
Most of the discussions have focused on supplying gas to Gove to reduce operating costs and Mr Macfarlane reportedly said on Monday that 300 petajoules of gas was available to Gove.
ABC radio reported Mr Macfarlane saying Rio should promise to keep Gove open for 20 years if the government promised to underwrite a pipeline to supply the gas.
Rio is still considering its options and is understood to still be a long way from reaching any sort of gas supply deal with third parties.
In a memo to staff on Friday, Rio said it was considering five options, ranging from keeping the refinery open under present terms to closing it.
Martin Ferguson, who quit as resources minister in March, has joined Kerry Stokes' Seven Group and will serve as an executive in charge of natural resources.
Frequently Asked Questions about this Article…
Resources Minister Ian Macfarlane has publicly pressured Rio Tinto to keep the loss-making Gove alumina refinery open for another 20 years after visiting Nhulunbuy. Rio has told staff it is considering five options for the refinery, ranging from keeping it open under current terms to closing it.
Federal and Northern Territory authorities want Rio to keep the Gove refinery open because the plant is largely responsible for sustaining the Nhulunbuy economy. Government officials have been involved in discussions to try to reduce operating costs and preserve local jobs.
Discussions have focused on supplying gas to the Gove refinery to reduce operating costs. Resources Minister Ian Macfarlane said about 300 petajoules of gas could be available, and a gas supply could materially lower the refinery's fuel costs.
Macfarlane reportedly said Rio should promise to keep the Gove refinery open for 20 years if the government agreed to underwrite a pipeline to supply gas to the site, linking a long-term commitment to government support for gas infrastructure.
No. According to the article, Rio Tinto is still considering its options and is a long way from reaching any sort of gas supply deal with third parties. The company has not made a commitment to keep the refinery open for 20 years.
In a memo to staff, Rio said it was considering five options for the Gove refinery. Those options range from keeping the refinery open under present terms through to closing it, though no final decision had been announced.
The article notes the Gove refinery is largely responsible for sustaining the Nhulunbuy economy, so closing the plant would likely have significant local economic and employment consequences. Authorities have therefore been lobbying Rio to avoid closure.
Martin Ferguson, who quit as resources minister in March, has joined Kerry Stokes' Seven Group and will serve as an executive in charge of natural resources. The article mentions this personnel move alongside the ongoing Gove discussions.
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