The Australian Workers Union has attacked the Australian government’s response to the moth-balling of Rio Tinto’s unprofitable Gove site in the Northern Territory as “just unacceptable”.
The production suspension of the alumina plant will see at least 1000 people lose their jobs and the mining town of Nhulunbuy potentially wiped out.
“We are talking about an entire town being destroyed here, $500 million wiped from the economy, and some of the most effective indigenous employment and training programs in the country wiped out,” Australian Workers Union national secretary Paul Howes told The Financial Review.
The high Australian Dollar, low price of aluminium and big after-tax losses are the contributing factors to Rio Tinto’s decision, as production is expected to be suspended early next year, reports The ABC.
The ABC and The Financial Review has more.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.