Rio moves to offer another $50 million to support community

RIO Tinto will provide an extra $50 million over the next five years to help attract new economic activity and support the community transition in Nhulunbuy and the East Arnhem region.

The announcement follows the company’s decision in November last year to suspend alumina production at its Gove refinery in 2014 — which will affect 1200 jobs — and move to a bauxite operation.

Key initiatives being offered in the Rio Tinto package include:

• Creating a Regional Economic Development Fund to help drive economic development in the region;

• Launching a Community Investment Fund to further support the arts, recreation and sporting groups, community organisations, and community events and programs;

• Providing additional funding, training and business mentors to help build capacity in indigenous businesses and support new economic activities, including the potential for mining operations in the region owned by Traditional Owners; and

• Offering professional advisors and financial assistance for community members, local businesses and residential property investors.

Rio will also offer to make available surplus company houses valued at $90 million to help attract new economic activities to the region.

Rio Tinto estimates its ongoing bauxite operation will contribute more than $500 million to the region over the next five years through expenditure on salaries and wages and spending with local suppliers.

The ramp down in alumina production at Gove refinery is scheduled for completion by August this year.

Rio Tinto expects to increase bauxite exports from mid-2014 and ramp-up to current bauxite production levels, which is about eight million tonnes a year.

The NT Government welcomed Rio Tinto’s announcement

“Since the day the curtailment of the alumina refinery was first announced, we have been urging Rio Tinto to do more to help the region and I am pleased that this new package reflects that,” Chief Minister Adam Giles said.

“It is pleasing to see that a new private sector entity will take on management of 250 surplus company houses in Nhulunbuy to attract new economic development activity to the town.

“My government is in talks with Rio Tinto about how this housing will be managed. We are also in active discussions over other company assets including the general cargo wharf at Melville Bay, other offices and warehouses.

“I am also pledging to match Rio Tinto’s $2 million contribution to a Regional Economic Development Fund aimed at driving new private sector investment and facilitating access to key infrastructure in Nhulunbuy.”

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