Mining giant Rio Tinto owes a moral debt to the people of Gove, Prime Minister Tony Abbott says.
Mr Abbott said on Friday the company's decision to suspend alumina production at its Gove refinery in the Northern Territory was bad news for the 1500 workers, but that he understood the company was hoping to offer other jobs within the Rio group.
"The people who I feel very sorry for are those who have bought homes and businesses in Gove on the expectation of a very vibrant, ongoing, continuing economy and who are now in a very difficult position," the prime minister told reporters in Adelaide.
"I think these are the people Rio does have a moral debt to, if not necessarily a legal debt."
Rio Tinto chief executive Sam Walsh said it was a sad day for everyone associated with Gove and an extremely difficult decision that would have a significant impact on workers and the Northern Territory generally.
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Rio Tinto says it will focus on its bauxite operations after determining the refinery is no longer a viable business in the current environment.
