Jo-Anne Scarini - Rio Tinto Alcan Gove Operation - Rio’s key initiatives to support the transition...

Curtailing the

Gove Refinery

A significant

transition for the

Operation, the

community and the

regional economy.

“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.”

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.

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.

“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.”

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.

“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.”

“Having a strong partner for the transition like the NT

Government has been imperative to what we will ultimately

deliver for the community.”

Rio Tinto has invested

$50 million over 5 years

to support the

community transition.

To a large extent, there have been

no templates to follow.

“This work has radically changed the way I

think about closure planning and the

timeframes to consider closure issues.”

“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.”