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Future of Gove alumina smelter affected by NT politics

Monday, Sep 02, 2013
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The driving forces of NT politics – development and dependence – have been amply displayed via the issue of gas supplies for the Gove alumina operation.


The owners of Gove have previously thrice rejected the option to pipe gas directly to the facility. Yet six months ago the operation (now owned by Rio Tinto following its hubristic takeover of ALCAN) demanded the NT supply natural gas or the refinery would have to close down.


The then-Chief Minister Terry Mills capitulated and offered ten years of gas from the Power and Water Corporation supply contract, provided the Commonwealth built a (A$500 million) pipeline from existing facilities to Nhulunbuy. This offer was despite the fact that Rio was then trying to sell its aluminium division and so the NT was merely subsidising the sale price.


Negotiations with the Commonwealth commenced. Then Adam Giles supplanted Mills and subsequently offered Pacific Aluminium half the gas of the original deal. This half-better developmentalist policy still depended on a Commonwealth-funded or indemnified pipeline.


The election intervened and both major parties have been opaque on the future for any pipeline.

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