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Gove alumina operations may close to cut costs


Post Date: 30 Oct 2012    Viewed: 363

The ABC understands the mine operator, Pacific Aluminium, called a meeting with workers today to announce it is conducting a strategic review into the bauxite mine and refinery.


The company says the temporary suspension of the refinery, about 600 kilometres east of Darwin, is one of the options being considered by the review, triggered by difficult global market conditions.


Pacific Aluminium says it is also exploring options to switch powering the refinery with gas, instead of more expensive fuel oils.


In a statement, the company says it is trying to make the Gove operations financially viable but will not know the outcome of its review until January. It has already signalled that employees leaving their positions will not be replaced and the use of contractors is being investigated.


Chief executive officer Sandeep Biswas says the company is looking at many ways to cut costs.


"One of the options is that we could consider the potential curtailment of Gove (operations) until economic conditions improve," he said.


The nearby town of Nhulunbuy, which has a population of about 3,000 people, is almost totally economically dependent on the Pacific Aluminium facility.


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