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East Arnhem Regional Economic Development EAST ARNHEM REGIONAL ECONOMIC DEVELOPMENT COMMITTEE SUBMISSION TO: THE AUSTRALIAN SENATE’S JOINT SELECT COMMITTEE ON NORTHERN AUSTRALIA 21 MAY 2014 The East Arnhem Regional Economic Development Committee (REDC) welcomes the opportunity to input into the Joint Select Committee’s inquiry on Northern Australia development The REDC was formed as an advisory body in May 2013 under the Northern Territory Government’s Regional Economic Development Framework and includes members from key Yolngu and non-Indigenous businesses and not-for-profit organisations operating across north east Arnhem. A full list of attendees is at Appendix A. East Arnhem: an untapped asset for Northern Australia development Covering a total of 33,425 square kilometres, the East Arnhem region spans the entire North Eastern corner of the NT mainland, excluding Groote Eylandt and Bickerton Island. It is arguably one of the last untouched regions of Australia, largely due to relative remoteness. The region is sits at the northwestern point of the Gulf of Carpentaria, and is bounded in the north by the Arafura sea. East Arnhem has a variety of geographical features including the pristine beaches, savannah woodland, monsoon forest, rocky escarpment and wetlands including the heritage listed Arafura swamp near Ramingining. The climate is tropical. In 2011, East Arnhem was home to around 16,000 people. At approximately 12,000 people, the majority of this population are Yolngu - the traditional owners of the region. Major Yolngu communities and homelands include Yirrkala, Gapuwiyak, Ramingining, Galiwink’u, Garrthalala, Baniyala and Gangan. The Yolngu of East Arnhem practice the longest continuous traditional culture in Australia. The township of Nhulunbuy serves as East Arnhem’s administrative and commercial service hub. Nhulunbuy was originally established in 1960s as a mining town, servicing the local bauxite mine and alumina plant. Since then, the township has expanded to service the entire region, with private retail, commercial and industrial operators and a growing private sector property market. The township and associated mining operations sit on Special Purpose Leases held by Rio Tinto Alcan and are maintained by the company as a condition of the mining lease. All land outside the Special Purpose Leases is held by the Arnhem Land Aboriginal Land Trust, which is enacted under the Aboriginal Land Rights (Northern Territory) Act. To date, mining has contributed the bulk of wealth to the region in its recent history - $540 million in 2011-12. The entire region contributed around $1.3 billion or 7% to the NT Gross State Product. The other major industry is government administration. These two pillars presently support businesses in other key sectors including manufacturing, construction, tourism and retail. While the curtailment of the local alumina refinery will reduce the population of Nhulunbuy and gross regional product in the short to mid-term, the fundamentals for our region remain strong. The REDC has a shared, long term vision to build a more diversified regional economy that better engages the Yolngu labour market, provides new and expanded opportunities for businesses, and leverages the region’s considerable cultural, natural and mineral wealth and existing infrastructure base. Nhulunbuy – a strong and well serviced regional hub After forty years as a mining town, Nhulunbuy and the surrounding region have a significant asset base from which to draw on for future development. The township of Nhulunbuy is maintained by Rio Tinto Alcan via the Nhulunbuy Corporation Ltd. We are presently well serviced by large commercial operators including Woolworths and Westpac and Australia Post. The town also hosts three schools and a hospital with medical, surgical, paediatric, respite and maternity services. We have two key retail areas with considerable space for businesses and government offices, an industrial centre, and a range of sporting and leisure facilities. Regional businesses, as well as Yolngu communities and homelands rely heavily on the township of Nhulunbuy for both social and commercial services including supermarkets, banking, healthcare, education, policing and housing. Yolngu leaders, including Galarrwuy Yunupingu and Wanyubi Marika, continue to emphasise the importance of a strong and well serviced township for the entire region. A new regional development corporation and fund is being established to facilitate industry development and attract new investors, jointly funded by the NT Government and Rio Tinto. Rio Tinto is directing 250 new houses to the corporation to assist in brokering new entrants and expanded activity. We have a natural coastal harbour at Melville Bay, with one of best equipped deep water ports on the northern coast of Australia. Its existing industrial and bulk goods handling capacity are a unique industrial asset in the heart of remote Northern Australia. Excluding Rio Tinto’s bulk terminal, wharf facilities include the general cargo terminal (depth 9m), the public wharf (depth 4.27m), and various boat ramps. As part of its transition plan for the alumina plant curtailment, the company has committed to opening up its general cargo terminal and other assets to multi- user access. The Gove port is therefore strategically positioned on the Gulf of Carpentaria and the Top End coast to expand its role as the front door to commercial fishing, aquaculture and off shore oil and gas exploration and extraction across the Arnhem and Barkly regions. Comparatively, Bing Bong, Karumba and Wyndham ports are quite shallow and rely on the use of barges for bulk loading. Weipa is also fully occupied by bauxite exports. The port’s capabilities are well matched by a well-functioning and comparatively large regional airport, capable of servicing both commercial and charter routes. A new terminal was completed in 2005. Together with the Gove Community Advisory Committee, the REDC is working with the NT Government and Rio Tinto to look at ways to sustain a sufficient population, services and skills base in Nhulunbuy so that it can continue to act as a strong regional hub. Successful early action will ensure that Nhulunbuy continues to act the foundation for emerging opportunities in industries including mines and energy, agriculture, tourism, forestry and fisheries. The region can be a strong contributor to the Northern Australia development agenda The REDC has identified a series of diversification opportunities for East Arnhem. These build on the considerable natural and built assets available within the region for expanded use by industry, governments and not-for-profits, and offer significant benefits for the regional and national economies. The majority of these opportunities have been projected by Deloitte’s Access Economics to grow at least 10 percent faster than global gross domestic product in coming years: gas; tourism; agribusiness; health and (international) education. Projects in some sectors, for example minerals and petroleum, may take some time to bear fruit. It will be important to prioritise action to seed development in these areas now, so that benefits can start accruing as soon as possible. In other areas, there are early wins to be made particularly through the further growth of micro-enterprise in Yolngu communities. Mines and energy As shown in the maps below, East Arnhem’s regional geology is considered to be highly prospective, extending into the northwestern part of the McArthur Basin. In addition to the Gove bauxite mine, the region contains significant manganese deposits (on the mainland and Groote Eylandt), as well as petroleum and base metals. However, the region’s relative isolation and the untested nature of suspected deposits mean that this sector has not yet reached its full potential. To date, exploration in the East Arnhem region has been largely focused on bauxite and manganese. Attracting exploration and investment in resources and extractive industries is one of our key priorities, with considerable benefits for regional jobs and revenue. STRATEGIC MINERAL AREAS KNOWN GAS POTENTIAL Source: Department of Mines and Energy The majority East Arnhem continues to be the subject of various exploration licence applications, held in veto by traditional owners for a number of reasons. Nonetheless, there are recent examples where licences have been granted after considered Yolngu engagement by mining companies including BHP. There is a role for governments to play in assisting with geoscience research to provide adequate information to prospective miners, reducing costs to get to market through improved road infrastructure to the Gove port, and working with traditional owners to engage on those concerns that led to exploration licence vetoes in the first place. Fisheries The REDC considers that the region is well placed to further expand fisheries activity, using increased access to Rio Tinto’s general cargo terminal and other port facilities for industry as the catalyst for growth. At present, there are only a number of small fishery and aquaculture operators based out of Melville Bay. The REDC notes the comments made by the National Seafood Industry Alliance (NSIA) in their March submission to this Inquiry on the great potential within Northern Australia for further development within both wild catch fisheries and aquaculture. Advice from the NT Seafood Council indicates that investment in upgrading the Gove port to facilitate more efficient access for unloading and re-supplying fishing operations will substantially
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