ABC reported that the Northern Territory Government hopes a decision will be made this week on a plan to help save a Rio Tinto alumina refinery on the Gove peninsula in remote North East Arnhem Land.
The Territory's Chief Minister said that any closure of the refinery could devastate the nearby mining town of Nhulunbuy which has also become a service hub for Indigenous people in the area.
The Territory and Federal Governments are discussing a plan to pipe gas to the Gove peninsula in a bid to convince the company to keep the plant running. The Rio Tinto owned Pacific Aluminium is reviewing its alumina refinery and bauxite mine on the Gove Peninsula.
Mr Dave Suter from the local Chamber of Commerce said that businesses are already feeling the pinch as the company cuts costs. One option on the table is suspending the operation of the alumina refinery but continuing to run the mine with an increase in bauxite exports. However, the majority of the 1,400 jobs at Gove are linked to the refinery.
Mr Klaus Helms is the chairman of Nhulunbuy's futures alliance which was formed to prepare for all possibilities, including a drop in Nhulunbuy's current population of 4,000. Since he arrived in Nhulunbuy in the late 1960s, Mr Klaus Helms has watched the town grow into a service hub for the region.
One reason the Gove operation has been losing money is the high cost of the heavy fuel oil it uses to power the operation. The company also supplies power to the town of Nhulunbuy and several Indigenous communities.
Mr Klaus Helms is keeping an eye on renewed talks about piping gas from Katherine to Gove. We're all working hard to get gas to Gove to make this region survive because it's pretty bleak if you look at the alternatives.
Mr Terry Mills CM of Northern Territory said that with the Federal Minister for Resources Mr Martin Ferguson have been positive. The Territory Government is considering selling some of its gas and the Commonwealth has been assessing the risk of underwriting the pipeline construction and gas conversion, estimated to cost USD 750 million.
