Rio Tinto to close Gove refinery in Australia

|About: Rio Tinto plc (RIO)|By:, SA News Editor

Rio Tinto (RIO +5.3%) says it will halt production of alumina at its unprofitable Gove refinery in Australia's Northern Territory that has struggled with low prices and a high exchange rate.

Gove has suffered heavy losses for some time but Rio agreed in February to keep it open after securing a 10-year supply of natural gas to substitute for costly fuel oil; the supply deal fell through in July with a change in the provincial government, and Rio confirmed earlier this week it was scrapping plans to convert the refinery to run on gas.

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