Hard to know reason for aggressive buying ....but a guess maybe the possibility of MEO announcing a big deal to supply up to 1b worth of gas to Rio's Gove refinery.
Story about Gove's... urgent requirment for more gas has come alive again today in newswires.
________________________________________
Rio's fresh threat to shut Gove
ALISON BEVEGE | January 7th, 2013
AUSTRALIA'S richest mining company has again threatened to close the Gove refinery unless it gets a $900 million pipeline and Territory gas.
Rio Tinto wants $1 billion worth of gas to power its Gove alumina refinery and bauxite mine, the Financial Review has reported, citing an unnamed government source.
It would reduce the Territory domestic gas supply by up to five years, and no guarantee has been given of replacement supply.
According to the Financial Review the company has again warned it may suspend its refinery operations after a December target set by Chief Minister Terry Mills for reaching a deal on the supply was missed.
The refinery is Gove's biggest employer and suspending the refinery would put 1000 jobs on hold.
Rio Tinto wants the NT and Federal Governments to build a $900 million pipeline to supply the gas to its Pacific Aluminium operations in Gove.
How much taxpayers' money would be used to fund the deal has not been disclosed.
Rio Tinto has separated the Gove operations into subsidiary company Pacific Aluminium in preparation for sale.
A review of the operations which will decide the fate of the refinery was launched in October and will finish this month.
The NT News is waiting on responses from Rio Tinto, Pacific Aluminium, Chief Minister Terry Mills and Federal Resources Minister Martin Ferguson in regards to the negotiations.
Add to My Watchlist
What is My Watchlist?