Rio to end Gove refinery talks

Future of Gove alumina refinery unclear as negotiations break off.

Rio Tinto (RIO) has reportedly told Australian governments there is no point in continuing negotiations over its loss-making Gove alumina refinery in the Northern Territory, calling into question the future of the refinery and raising the prospect of significant job losses, according to The Australian.

The newspaper reported that the miner is expected to decide this week to scale back the refinery and instead export bauxite as negotiations with the federal and territorial governments over subsidised gas supplies hit a stalemate.

Governments have offered significantly discounted gas supplies and promised a $600 million gas pipeline but have apparently told the miner they can not offer any additional incentives.

The refinery's future has received significant attention as Rio is a dominant employer in the region and a winding down of the refinery could cost the territory some $400 million in economic benefits, according to The Australian.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles