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