The Federal Government has reiterated its commitment to working with Rio Tinto and the Northern Territory Government in ensuring the long term viability of the Gove alumina refinery.

Pacific Aluminium, a business unit of Rio Tinto, employs approximately 1100 people at the Gove refinery, currently 10 per cent of which are indigenous.  The refinery has been operating at a loss due to high fuel prices, weak alumina prices and the strong Australian dollar.

Rio Tinto has announced it will keep the refinery operating while it conducts a feasibility study on converting the refinery from imported heavy fuel oil to locally sourced gas, and the Commonwealth’s Export Finance and Insurance Corporation is conducting due diligence on a loan guarantee to support financing of the construction of a gas pipeline from Katherine to Gove. The Northern Territory Government has agreed to release gas for ten years, once the pipeline is built.

“Supplying gas to Gove would not only help to ensure the future of the refinery, but also stimulate exploration and development of gas fields across northern Australia,”  Federal Energy Minister Martin Ferguson said.

This pipeline has the potential to become a significant piece of infrastructure for industry development in the Northern Territory.”

Due diligence and feasibility studies are planned to be completed by December 2013 with gas expected to be supplied to Gove in early 2016.