Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rio Unit Says It Needs Unconditional Gas Supply Pact for Gove

Jan. 23 (Bloomberg) -- Pacific Aluminium, a unit of Rio Tinto Group, said it needed a clear and unconditional commitment on gas supply from Australia’s Northern Territory government for its Gove alumina refinery.

Rio started a review of the operation in October because of higher fuel oil costs and low alumina prices, and may suspend production. The territory’s government said today in an e-mailed statement it needed more time to arrange gas supply. A pact would also need a commitment from the federal government to underwrite funding to build a pipeline to supply Gove as well as finding replacement gas for local users, it said.

“Pacific Aluminium needs a clear and unconditional commitment from the Northern Territory government for gas supply to the Gove refinery,” Pacific Aluminium’s Chief Executive Officer Sandeep Biswas said today in an e-mailed statement. A decision on the future of the operation would be made after the review concludes by Jan. 31, he said.

Rio Tinto announced plans in October 2011 to sell 13 aluminum assets, including Gove, to improve the group’s financial performance and transferred smelters, mines and alumina plants to the new unit. Gove in 2012 produced 2.7 million metric tons of alumina and 7.9 million tons of bauxite, according to its website.

To contact the reporter on this story: Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.