Australia's N.Territory not backing gas deal for Rio alumina plant

Wednesday, Jul 31, 2013

Australia's Gove alumina refinery owned by Rio Tinto could be left looking for new sources of fuel to stay in business after the Northern Territory government said it would not back a proposed deal to supply the gas.

Earlier this year, the government offered 300 petajoules of gas over 10 years from its domestic supply source to save the loss-making refinery, operated by Rio Tinto subsidiary Pacific Aluminium.

Rio Tinto threatened to close the refinery due to high operating costs and market pressures unless it could find sources to replace expensive diesel with natural gas.

"The original proposal by Pacific Aluminium was always conditional on a rigorous due diligence process and unfortunately the results have revealed unacceptable risk to the NT economy and taxpayers," Northern Territory Chief Minister Adam Giles said.

Recommended exhibitions

Machine Tool Indonesia 2013
Venue: Jakarta International Convention Center
Exhibition Profile:
Machine Tool Indonesia is the largest, and most profe......
2013 Thailand International Machine Tool and Metal Processin
Venue: Thailand Bangkok International Trade And Exhibition Center
Organizer: Beijing East International Exhibition Co.Lt......
North America International Metal Processing Exhibition
Venue: Chicago International Expo Center
Sponsors: American Society of Mechanical Engineers, American Association of Pre......
2013 Korea Metal Week
Venue: Korea International Expo Center KINTEX
Sponsor: Korea Trade Fairs Ltd.
Korea Fastener Industry A......