Department of the Legislative Assembly, Northern Territory Government

Mr McADAM - 2003-10-16

Another huge investment project has taken a step forward with Alcan today announcing the joint venture for its feasibility study into the proposed $1.5bn expansion of its refinery at Gove. Can you please outline the benefits for the Territory?

ANSWER

Mr Acting Speaker, I am delighted to. This is a very important question regarding the Territory’s future from the member for Barkly. I congratulate Alcan on naming Leighton Contractors and SNC-Lavalin, joint venturers, to do a definitive feasibility study for their proposed $1.5bn expansion of the alumina facility at Gove.

We had the announcement of this mid-year, but this is moving the project a step forward. It is a massive project for the Territory. The announcement today that they have appointed what they call their EPCM, which is their engineering procurement and construction manager partner, is a substantial step forward to seeing that major project for the Territory realised. It is about hundreds of jobs in the construction phase, and a doubling of the size of the work force at Gove when completed.

It is a very exciting project and one that has taken another step forward. That project, of course, is the linchpin for the go-ahead of a 1000 km pipeline from Blacktip through to Gove, costing $500m, and the gas facility at Blacktip, another $500m investment. The investment in full is $2.5bn. The announcement today from Alcan puts that firmly on track for that $40m feasibility study. We congratulate that fine Australian company, Leighton, for winning that part of the joint venture.

There is a lot more work involved with this project. Making that commitment to a feasibility study is a very important first step for Alcan. There are land access and environmental issues to do with the pipeline coming 1000 km across the Territory. Government has the Alcan task force, which is combining the expertise of government to work with the joint venturers - Alcan and Woodside ENI, who are doing the gas and the pipeline - to make sure that when this project comes to Alcan mid-next year for final project approval, everything will be lined up. We are confident that we can get there.

I have not yet met with SNC-Lavalin, based in Montreal, Canada. I will be meeting with the Leighton team, including their chairman, Wal King, in Brisbane next week. I will also be meeting with Alcan to talk further on the involvement of our work force and our enterprises in the project.

We were delighted in mid-June when we had first gas come onshore from the Timor Sea. This is another step forward to an announcement, mid-next year, that second gas will be coming onshore from the Timor Sea. This means a significant step change in our economy, really underpinning for steady and strong growth for the future. That is great news for Territorians, jobs and our enterprises. I congratulate Alcan and Leighton for their involvement in this feasibility study.
Last updated: 09 Aug 2016