NT government at odds with Nhulunbuy economic fund over housing crisis

Nhulunbuy housing provider urged to get back to basics amid post-mining planning crunch Sun 5 Jul 2026 at 9:14am In short: Nhulunbuy residents and a senior Northern Territory government official have accused an economic development group, based in the remote mining town, of not doing enough to support small business. Developing East Arnhem Land (DEAL) has rejected the criticism, saying its focus remains on small business. Traditional owners are calling on Rio Tinto to outline further details of its plans for Nhulunbuy, to speed up the delivery of new housing. A senior Northern Territory government official has criticised a government-funded remote housing provider for "not doing enough" to support small business owners in a local housing crisis. Rio Tinto is due to shut its bauxite mine near the town of Nhulunbuy, in north-east Arnhem Land, in 2029. The operation has held up the local economy for decades through well-paid mining jobs and the flow of royalties to the region's traditional owners. In the time leading up to the cessation of bauxite production, known locally as 'the transition', many long-term residents have called out a perceived lack of long-term planning for Nhulunbuy's future. Residents who spoke to the ABC all named a critical shortage of housing as a major issue facing the town. Nhulunbuy economic fund accused of forgetting its purpose Following the closure of an alumina refinery in 2019, the NT government and Rio Tinto established an economic development agency called Developing East Arnhem Land (DEAL), providing it with 250 local houses for businesses to accommodate staff. DEAL manages and rents out that housing to government agencies, Aboriginal corporations and local employers via a waiting list. Only 17 per cent of Nhulunbuy's housing is managed by DEAL, with the remainder owned privately, by the NT government or Rio Tinto. Blue Douglas runs a handful of small businesses in Nhulunbuy with his family, but said he was planning on selling up and leaving town due to the economic uncertainty and lack of available housing. Mr Douglas said he had attended meetings where DEAL had committed to supporting local businesses as part of their remit. "We were informed way back when [DEAL] started that they were here to assist and develop business. These days their focus seems to be on tourism," he said. "I understand they do other things in the background, but for the average small business like me they're [of] very, very little assistance." According to DEAL's website, their housing portfolio "is currently at full capacity". Mr Douglas said it was business owners who were missing out. "We can't get accommodation, which means we can't hire and retain staff, which means we can't grow our business," he said. Earlier this year, DEAL launched a major tourism campaign under its Visit East Arnhem brand, with a series of advertisements showcasing the region's natural environment, Yolŋu culture and outdoor lifestyle. The tourism campaign, and other initiatives such as small business grants, are partly funded by income generated through DEAL's housing management. Louise McCormick, a senior public servant within the NT government and chair of the Gove Peninsula Futures Reference Group (GPFRG), of which DEAL is a member, said residents like Mr Douglas had a point. "I specifically have said to [DEAL] I'd like more focus on small business, because that's the original remit for DEAL," she said. "I think they have probably broadened their remit a little too wide, and need to focus in on what transition means for our businesses in that town." A spokesperson for DEAL rejected the criticism. "The DEAL remit has never changed," they said. "The focus remains on small businesses. "DEAL's remit has always been industry development and industry attraction inter alia economic development, including small business." The not-for-profit declined to provide a breakdown of its housing allocations, but said its "primary purpose" was to support business. It also declined to say if Rio Tinto would hand over any more housing stock before 2029. Mc McCormick said future planning for Nhulunbuy's housing market would be the subject of an investigation by the GPFRG, which is due to front the Nhulunbuy community at a public meeting this month. Traditional owners attempt to address housing shortage In a cul-de-sac in Nhulunbuy's west, construction is nearing completion on an $8 million housing development. The chief executive of its developer, the Rirratjingu Aboriginal Corporation, has been frank about the town's housing availability. "It's very expensive [and] in terms of availability, it's zero,"Paul Martin said. Rirratjingu's chair Wanyubi Marika said the investment had been made with royalties accrued from a deal between the Rirratjingu, the traditional owners of the Nhulunbuy township, the Gumatj, the traditional owners for the Rio Tinto mine site area, and Rio Tinto. "This is our family money, putting it into reality for survival of the future of Gove," Mr Marika said. Nhulunbuy's township lease has become a critical part of transition planning, with new housing only able to be developed by the Rirratjingu on land relinquished by Rio Tinto. Rio Tinto's leasehold over Nhulunbuy does not expire until 2053, and Mr Marika said he was keen to see further detail on the timeline of a hand-back as part of ongoing talks with the mining giant and the Northern Land Council. "We've never seen [what] your plans are, so put it in the open where the public can see,"he said. The NT government has already signed leases for its local health workers at Rirratjingu's 22-bedroom development, and Ms McCormick said the NT government had relinquished some of its leases on DEAL's housing to relieve rental demand. She said it was realistic to expect that a decision would be made as to when and how Rio Tinto would stage the hand-over of Nhulunbuy's lease, by the end of next year. "That gives us an 18-month window to have a much greater focus then on economic attraction into the region," she said.