NT to put new gas offer on the table for Gove
PERTH (miningweekly.com) – The Northern Territory government is preparing to present Rio Tinto with an amended gas offer for its Gove aluminium refinery, which the mining major had threatened to close.
Rio and the territory's government have been at odds regarding a March agreement, under which the Northern Territory would have supplied some 300 PJ of gas, over a 12-year period.
But, in June, the state’s Chief Minister, Adam Giles, said the gas deal contained unacceptable risk to the territory’s economy and its taxpayers, flagging possible energy shortages in the long run.
The state government instead proposed a 195 PJ gas deal for Gove, in the form of a dual fuel model.
However, Giles said this week that Rio had informed the government that it would prefer to just deal in gas, and not in a dual fuel option, as it could source its own heavy fuel.
“Government officials did some further negotiations and gas field analysis with another company and found an additional 46 PJ of gas, and the government’s offer now stands at 175 PJ,” he said.
Additional to this offer was another 78 PJ from a second gas company.
Giles said that the territory government would present the offer to Rio, and would seek to secure the long-term future of the Gove operation.
Faced with high operating costs and market pressures, Rio Tinto has threatened to close the refinery if it could not find natural gas sources to replace diesel at the plant.
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