Power company to 'keep job losses at a minimum'

The power company running the Playford power station at Port Augusta has said despite the expected closure of the plant, they will keep job losses minimal.

Alinta, the company responsible for Playford, as well as the Northern coal-fire power station at Port Augusta, had previously announced it would look at closing the plant, as part of the government's 'contract for closure' option available to emission intense polluters.

Built in 1963, the Playford power station is a 240MW brown coal-fired power station, with Alinta admitting the station's carbon emissions are 'significantly higher than the national average'.

"As the timing around the auction process becomes clearer, we will actively engage with employees, unions, the Port Augusta community and all levels of Government," Alinta CEO, Jeff Dimery said.

"We are confident that due to the integrated nature of the Playford and Northern Power Stations at Port Augusta, we will be in a strong position to keep job losses at a minimum," he said.

Last week, Tim Kelly from the Conservation Council, said it's not surprising the Playford plant is in the firing line, thanks to the carbon tax.

"We're looking forward to the closure of the Playford B Power Station, we believe it's going to happen anyway because it's at the end of its useful life," he said.

Alinta expects the younger Northern Power Station in Port Augusta (built in 1985), to be unaffected, as well as the Leigh Creek Coal mine.

CEO Jeff Dimery said now the carbon legislation had been revealed, the company can prepare for transition to a 'lower carbon economy.'

"We have recently been in constructive discussion with the Government in relation to the application of the proposed carbon legislation on Alinta's business," he said.

"We're pleased that the proposed legislation provides a level of protection for our employees, the communities in which we operate and our other key stakeholders."

"With fair and equitable treatment of our assets, Alinta will be able to ensure security and reliability of energy supply for our customers."

But the town's Mayor, Joy Baluch, strongly disagrees, saying the tax will cost Port Augusta jobs.

"Both the community and the council are concerned about this but let me say this; that neither Alinta, nor the state government, nor the federal government have discussed what the impacts would be with the power station on Port Augusta," she said.

"We know it will have effects on employment and upon economic development."

"I think Alinta is playing their cards off against both the state and the federal government, the Rann government and a series of governments prior to them have had a sufficient opportunity over the last two decades to convert to either gas or thermal solar and they have done nothing."

She said the town will begin negotiations with Alinta and the state government to minimise the impact on the town.

"It's all hypothetical, they cannot close the Northern Power Station and Thomas Playford Power Station tomorrow," she said.

"We provide forty percent of the state's power, so where are they going to get that power from?"

"We have not been privy to those discussions."

"Our concern is both about job losses and economic development and the health of my community, and there should have been more discussions with the council and the community."

Locals agree with their Mayor's concerns, and are angered by the lack of assistance to the area, with big industries in other towns in the 'Iron Triangle' like Whyalla's steelworks and Port Pirie's lead smelter receiving government assistance.

"We're all in the same triangle, and should be treated the same," one told 7News.

"I thought it (the power station) was a job for life... but not anymore."

7News understands a $540 million gas-fired power station is being considered by Alinta for Port Augusta.