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C O N V E N E S P R E S E N T S C O O R D I N A T E S O R G A N I Z E S C O L L A B O R A T E S M E D I A P A R T N E R “First Meeting of the Network of Mining Regions” TRANSITIONING REGIONAL ECONOMIES IN ARNHEM LAND Jim Rogers Regional Executive Director 33,000 풌풎풔 East Arnhem Region Population 16,000 (70% Indigenous) Rio Tinto Bauxite and Alumina Ranger Uranium Mine GEMCO Manganese Nhulunbuy • Township built by Nabalco in late 1960s – early 1970s • Purpose: to support bauxite mining operation and associated refinery • Resident numbers b/n 3000 and 5000 people, nearly all mining related, non-Indigenous and highly transient • The mining titles are linked directly to the township Special Purposes lease – finite • Well serviced regional centre with a capable airport, sea port and other community infrastructure East Arnhem and Gove Peninsula transition A 10-15 Year Plan 2014 2015 2016 2017 2018 2019 2020 2021 2022 Ongoing Gove Transition (4years) - Growth and diversification – ~10 years Closure planning and post mining economy – ~10+ years – GOVE TRANSITION: NOVEMBER 2013 “In the end, gas wasn’t enough. It will take 8 months to wind down operations at the refinery. The workforce will reduce from 1450 to 350 people ” Rio Tinto Alcan Transition Director COMMUNITY AND BUSINESS RESPONSE RESPONSE: NT GOVE TRANSITION TEAM On Ground Senior Transition Manager NT Government Dedicated multi-agency project team Working directly with Rio Tinto leadership and Transition Team Darwin Senior Executive Leadership CEs Steering Group Policy and program support Working with Rio Tinto, the Commonwealth Government, businesses and the community on the transition of the community and the regional economy GOVE TRANSITION FRAMEWORK IMMEDIATE SUPPORT: PEOPLE, BUSINESS, COMMUNITY 0-12 Months STABILISATION: POPULATION, SERVICES AND SOCIAL FABRIC 0-3 years ECONOMIC DIVERSIFICATION: INDUSTRIES, INVESTMENT , ENABLERS AND INFRASTRUCTURE Ongoing IMMEDIATEIMMEDIATE SUPPORT SUPPORT INITIATIVES Key measures: • Community Support Centre; Gove Community Advisory Committee and Gove Taskforce • Social supports – counselling, financial planning, etc • Targeted support for service providers and organisations • Regular communication via website, e-news, community and individual meetings • Active Senior Business Client Manager “The business now has a clear outreach vision - instead of scaling back we • Business Growth consultancies - $1.5M will grow and operate more committed in grants (Nov 2013 - Sept efficiently” 2014): 76 businesses involved with 634 employees and $92M in annual turnover “We now have the confidence to • Business Capability Expo, workshops move forward – this is imperative in • Co-funded staff upskilling (e.g. project the new Gove environment” management, customer service) “The program is a great investment by Government to ensure business sustainability for the region into the future” STABILISATIONSTABILISATION INITIATIVES Key measures: • Strong Government commitment to Nhulunbuy as regional hub ($1B/4 years) • Transitioning FIFO to residential • Local procurement focus • Early commitments from Westpac, Woolworths • Good transition from Qantas to AirNorth • Support for clubs/associations and volunteers • Gove Taskforce Monitoring and Review “…we were told that the town would Framework end up with a population of 1,200 to • Regional Coordination Committee; CEO 1,500 people" visits: focused on service continuity and John Tourish, ABC online staff support STABILISATIONSTABILISATION – SUCCESS OR NOT?INITIATIVES • Population est. 3400 – from 2100 in late 2014 • GRP - 20% or $325M in the past two years since curtailment • government services : Health services, new regional boarding facility, aged care • Business diversification and growth: • Indigenous/non Indigenous Joint Venture; • Regional supply – import substitution; • 200% in tourism accommodation bookings in 2016; • local labour engaged in regional services • new small and micro businesses THE HARD WORK LIES AHEAD - ECONOMIC DIVERSIFICATION ECONOMIC FACILITATION COMPANY www.developingeastarnhem.com.au LOOKING FORWARD: PRIORITIES Economic enablers • Traditional Owner engagement (development by consent) • Pre-competitive information: land and soil assessments / geoscience program • Labour market development approaches • Competitive supply chains: sea, air and land Industry development • Tourism, Arts and Culture • Fisheries and aquaculture • Forestry, local agribusiness, land and sea management • Government and commercial services including construction • Mines and Energy • Defence Community strengthening • Cross-cultural engagement • Governance capabilities • Youth development • Early family support including housing • Government services Airport City-standard airport, equipped to handle 150 000+ passengers per annum, other features include; • 2208m long x 45m wide runway, capable of safely landing aircraft like Boeing 737-400 (68,000 kg weight limitation, Larger aircraft access by approval pending pavement concession • 24/7 access, pilot activated lighting; • Dedicated parking apron for commercial aircraft and a separate terminal for smaller general aviation craft; • Security controlled aerodrome and security screening contractor; • Navigational aids for inclement weather; • Airspace clearance easily facilitated. Deep water port facilities Our region also offers some significant comparative advantages due to the assets already in place on the Gove Peninsula. You have seen we have a natural deep water port that has well-equipped industrial and bulk goods handling facilities, including: • General Cargo Terminal Designated for vessels up to 25 000 deadweight tonnes with a max length of 165m; • G3 wharf, 36m long x 20m including 1300m2 laydown area with general lighting; • Roll on, Roll Off barge ramp 20m wide with all tides access • Underutilised laydown areas and office/warehouse space within port area ; • Existing Customs presence; • Commonwealth Maritime Security legislation compliant Telecommunications Health: • Level three 32-bed regional hospital with trauma room, surgical, maternity services • Emergency department undergoing upgrades • Private medical, dental and allied health providers; visiting specialists • Gove Peninsula Ambulance service; • Regional CareFlight medical retrieval /patient travel service • New Regional Flexible Aged Care in Nhulunbuy • National Disability Insurance Scheme • Strong regional service providers Policy Considerations • What does the future look like for the region? • What to the land owners, business and community think? • Is it sustainable? LOOKING FORWARD: EVIDENCED BASED DECISION MAKING - GOVE PENINSULA ECONOMIC STUDY • Total job opportunities and population growth to 2036 by industry under 'business as usual', and, 23 'key event' scenarios (including future shocks) • Key growth industries based on changes in local demand and estimates of total floorspace required • Purpose: Provide a Robust set of data from which cost-effective policy solutions can be derived for ensuring economic viability of Gove Peninsula over the coming decades. LOOKING FORWARD: GOVE PENINSULA ECONOMIC STUDY DO NOTHING/BENCHMARK: Mine closure and no major new industries Model for in 2036: +2122 pop. but -513 jobs MEDIUM GROWTH: Mine closure and new industries Model for in 2036: +3000 pop. but + 427 jobs HIGH GROWTH: New mines and major new industries Model for in 2036: +4000 pop. but + 1186 jobs CLOSURE PLANNING AND THE POST MINING ECONOMY • Mine closure plans and rehabilitation outcomes • Hand back of the township – land tenure, infrastructure, essential services and governance • Land owner, business, and community engagement • Why start now? CLOSURE PLANNING AND THE BIG ‘ROCKS’ Next steps • Operator engagement and regulator roles • Understanding the risks, costs and benefits • Policy setting for governments • TO engagement and negotiating the future settings “First Meeting of the Network of Mining Regions” THANK YOU QUESTIONS? .
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