Jo-Anne Scarini - Rio Tinto Alcan Gove Operation - Rio’s key initiatives to support the transition...
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Curtailing the
Gove Refinery
A significant
transition for the
Operation, the
community and the
regional economy.
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“This work has required an extraordinary emotional investment on the
part of leaders and those facing the community on a daily basis. It has
required tenacity and a willingness to face people’s distress in the
wake of the announcement on the future of the refinery.”
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Operational Transition Roadmap
12
Operational Transition
Scope/
Objectives
Strategy/
Approach
Resources/
Tools
Technical process for
refineryMining operations Workforce transition
Customers and
Suppliers
• Manage a safe and orderly
wind down of refining
operations and transition to a
care and maintenance program
for the operation.
• Transition to mine only
residential operation.
• Identify residual workforce.
• Manage impacts on workforce .
• Manage customer and supplier
relationships through the
transition.
• Manage bx, al, hydrate and
caustic balance through the
transition.
• Develop technical pathway to
wind down refining operations
and implement.
• Develop and implement care
and maintenance program
with a focus on high cost
critical components.
• Safely store seed material for
restart.
• Engage workforce on ‘My
Future Plan’ process.
• Seek to redeploy as many
people as possible within RT.
• Support workforce through
the transition and optimise the
number of people that leave
Nhulunbuy with alternate
employment.
• Ensure wind down optimises
hydrate, alumina and bauxite
production.
• Operationalise new supply of
hydrate.
• Close out all supplier
agreements on refining
activities.
• Manage working capital
effectively.
• Ensure careful approach to wellbeing of the workforce, especially a safe ramp down of operations and psychological wellbeing of workforce and their families. Make
transitional support services available.
• Consider how best to manage environmental legacies during and post the wind down process.
• Sufficient resources to ensure a safe transition process and that environmental legacies are appropriately managed.
• Site team to be engaged in delivering the transition.
• Develop and submit revised
MMP.
• Initiate capital program to
support 8mdpt p.a.
• Ensure environmental legacies
are appropriately managed
(integrity of dams, WWNP).
• Fill roles in residual
organisation.
• Establish care and maintenance
team.
• Redundancy costs.
• Costs for transitional support –
counsellors, financial advisors,
outplacement services.
• Establish and utilise alternate RT
production facilities for hydrate.
• 6/8 Conveyor link to be
installed.
• Shiploading solution to be
implemented.
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Community Transition Roadmap
16
Community Transition
Scope/
Objectives
Strategy/
Approach
Resources/
Tools
Services OrganisationResidential Property
InvestorsTraditional Owners
• Ensure viability of specialised
service provision in the
community e.g. childcare,
education, airport, barges,
supermarket, bank, other
essential services.
• Ensure sustainability of Town
infrastructure and services
including airport.
• Support capacity of local
organisations to service the
community into the future.
• Limit the potential negative
impact on housing market.
• Provide transitional support to
property owners experiencing
financial hardship.
• Ensure Nhulunbuy can continue
to fulfil the role of regional
service hub.
• Increase employment
opportunities for traditional
owners in the region.
• Maintain power water and
sewer services for the town.
• Ensure good level of town
amenity.
• Ensure viability of specialised
service provision in the
community e.g. childcare,
education, air services, barges,
supermarket, other services.
• Implement property strategy
and policy framework.
• Leverage RTA housing assets
for economic growth, manage
‘supply’ of housing, without
restricting the residents in
Nhulunbuy.
• Consider using Nhulunbuy as a
FIFO base for projects in the
Territory.
• Engage banks.
• Engage TOs in the
development of the long term
vision for the town and the
region.
• Improve employment and
training efforts for Traditional
Owners.
• Provide information on impacts and timing
• Provide transitional support to all community members – counselling, financial advice, job search support to limit immediate impacts of decision.
• Additional financial resources
to support continuation of
town services.
• Incentives for operators to
remain in the region.
• Community Development fund
resourcing.
• Airport subsidy.
• Study costs.
• Rates relief and mortgage
assistance programs
• Subsidised residential rental for
ex-employees wishing to
remain in Nhulunbuy.
• Maintain resourcing to TO
agreement.
• Operational planning for NCL
and Airport.
• Long term Strategy for
Nhulunbuy Township.
• Review governance of the
Town.
• Establishment of a community
development fund.
• Resourcing of transitional support programs.
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“Despite the difficulties experienced by the refinery over a long
period of time, community members and staff never really
believed we would curtail the refinery.”
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Regional Economic Development Roadmap
20
Regional Economic Development
Scope/
Objectives
Strategy/
Approach
Resources/
Tools
Local Suppliers Local Businesses Traditional OwnersDeveloping
economic activities
• Maximise local procurement
(where competitive).
• Assist in smooth transition.
• Explore opportunities outside
of Nhulunbuy.
• Maximise the usage of existing
business prior to supporting the
establishment of new entities.
• Support the development /
enhancement of sustainable TO
activities.
• Facilitate development of
sustainable alternatives.
• Maximise possibility of a
“flagship” job creation
opportunity.
• Develop knowledge base of capability, infrastructure, strengths, etc.
• Maximise outsource options to assist the survival of local businesses.
• Provide access to business mentors to support the capability of local
businesses to plan through the transition and drive growth following the
cessation of refining.
• Implement local buy policy and encourage others in the region to do the
same.
• Maintain population through FIFO from the region and other
opportunities.
• Engage with TOs on how RED
might be progressed.
• Engage on Dhupuma Plateau and
how this project can be
facilitated with knowledge and
skills transfer.
• Ramp up indigenous
employment in the region.
• Explore with NT / Fed Govt
significant activities that could
be located in Nhulunbuy.
• Focus on 2-3 key areas to
explore and develop vision and
specific strategies.
• Business planning support delivered from Transitional Support Centre.
• Subsidised commercial rental for businesses in RT premises.
• Relief for business.
• Regional Economic Development (RED) Working group established (High level engagement from NTG, Federal Government, TOs, local Business community, NCL).
• Develop fact base, SWOT, Vision and Master Plan.
• Establish partnerships to deliver the approach (e.g. Economic Development Australia).
• RTA Full time resource + support from Head office champion, dedicated Federal Government champion, dedicated NTG Champion.
• Regional Economic development fund with RT, FG and NTG contributions.
• Leverage RTA facilities and expertise whenever possible.
• RED working group.
• Micro financing program with Westpac.
• Business mentors.
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“Working for a company with strong values has allowed us to:
have a good plan, a fair plan, to respond to the community in the
way that they needed, and to be proud of the work we have
done through this transition.”
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“Having a strong partner for the transition like the NT
Government has been imperative to what we will ultimately
deliver for the community.”
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Rio Tinto has invested
$50 million over 5 years
to support the
community transition.
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To a large extent, there have been
no templates to follow.
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“This work has radically changed the way I
think about closure planning and the
timeframes to consider closure issues.”
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“There has been some fantastic
work done on regional economic
development and the economic
development entity. The
approaches taken within the region
will be a great asset for decades to
come and could become a model
for others in the future.”
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