THE Northern Territory Cabinet has voted to back a gas plan it hopes will be enough to keep an alumina refinery open and save the outback town of Nhulunbuy.
After returning to Darwin on Saturday following a trip to Canberra and Europe, NT Chief Minister Terry Mills took a proposal to his cabinet on Monday that may secure the future of the Gove alumina refinery.
"The Northern Territory government has agreed to release enough gas to keep the Gove aluminium refinery open for the next 10 years," the government said following the meeting.
"Today's decision is subject to a commitment from Rio Tinto assuring the ongoing operation of the Gove alumina refinery, and from Eni confirming details of their guarantee to supply gas to Power and Water Corporation until 2026," it said.
The refinery, run by Rio Tinto Ltd subsidiary Pacific Aluminium, has been making a loss of about $US30 million ($A29.22 million) per month, and an internal review recommended mothballing the facility.
Such a move could economically devastate the satellite town of Nhulunbuy that services the refinery and bauxite mine, and force many of its 3800 residents to leave.
"I would be wanting a statement from Rio as to what their intent is regarding the operation of the refinery," Mr Mills told reporters.
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