Rio Tinto Limited
(ASX:RIO) says it will move to suspend alumina production at its Gove refinery and focus on its bauxite operations.
The mining giant says key factors affecting the decision were continuing low alumina prices, a high exchange rate and substantial after-tax losses for the refinery despite considerable efforts to improve refinery performance during that time.
Rio Tinto says consultation with employees and the local community will now be a priority as it establishes a long-term plan for its bauxite operation.
The group says it will work on the scope and phased timing of the suspension and prepare for all potential outcomes.
There will be no immediate change to refinery operations and the process of suspending production is expected to start in the first quarter of 2014.
Rio Tinto delivered a net profit of $1.8 billion in the first half of fiscal 2013.
