THE operators of the Kurri Kurri aluminium smelter have publicly contradicted Premier Kristina Keneally's assurances that her government is working to protect its workers.
The operators say the smelter's future, and that of thousands of jobs, remains in doubt.
It is understood executives of smelter owner Hydro met representatives of the government-owned Macquarie Generation on Wednesday afternoon, following Ms Keneally's statement last week that the government had asked the power company to start negotiations with Hydro for a new electricity supply contract.
Hydro was tight-lipped on the talks but issued yesterday its own statement that said Ms Keneally's statement "has not changed the prospects for the Kurri Kurri plant".
"Future investment to keep the plant competitive is now on hold," it said.
Opposition primary industries spokesman Duncan Gay said Hydro's comments yesterday were a "damning indictment" of the Keneally Government.
Ms Keneally's office directed inquiries yesterday to Treasurer Eric Roozendaal.
A spokesman for Mr Roozendaal did not respond to requests for comment on the issue late yesterday.