The Northern Territory's chief minister will visit the township of Nhulunbuy on Friday following news that mining giant Rio Tinto is abandoning plans to convert its Gove alumina refinery to gas.
The township is in shock, Member for Nhulunbuy Lynne Walker told the NT parliament on Tuesday.
"You need to accept responsibility for this crisis, which you created when you reneged on the (previous chief minister's) deal in July," she told Chief Minister Adam Giles.
Former Chief Minister Terry Mills earlier this year committed 300 petajoules of gas to the troubled Pacific Aluminium refinery to keep operations running at Gove.
It's the primary livelihood for almost half of the 4000 people living at neighbouring Nhulunbuy.
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In July Mr Giles backed away from the commitment, instead offering 195 petajoules of gas, with 30 petajoules coming from a private company and the federal government offering to underwrite a pipeline to bring cheaper gas to Gove to make up the rest.
"The Northern Territory has offered up all gas requested by Rio Tinto," Mr Giles said.
"We've been in conversation many times over the year to determine what we can do ... to provide an economic base for the township."
"You have abandoned the people of Nhulunbuy," Ms Walker replied.
A Rio Tinto spokesman said deteriorating market conditions had amplified challenges to the refinery.
Continuing low alumina prices, a high exchange rate and substantial after-tax losses for the refinery were key factors under consideration, he said, but no final decisions had been made and bauxite mining operations will continue.
Employees and the community will be consulted in the coming weeks.
"The Australian and Northern Territory Governments on both sides of politics have worked tirelessly with Rio Tinto over recent months endeavouring to secure a long-term future for the refinery," the spokesman said in a statement.
"At this time, there is nothing more that could reasonably be expected to be done by either government to support the business case for gas."
