A Northern Territory MP has warned the potential departure of Woolworths from Nhulunbuy could have significant consequences for the remote community.

The town, located on the Gove Peninsula, is facing growing uncertainty after Rio Tinto announced it would wind down operations at its bauxite mine — the region's largest employer.

Home to more than 3,000 people, including 13 Yolŋu Aboriginal clans, it now also faces the possible closure of its local Woolworths supermarket, which receives its supplies via barge in a journey often taking several days.

Member for Mulka Yiŋiya Guyula said he was disappointed to learn the retailer may leave by mid-2027, arguing the Northern Territory CLP Government has not done enough to retain major businesses or secure essential services.

With the mine expected to close by the end of the decade, there are concerns that many non-Indigenous residents — including key workers — could leave the region, placing further strain on the community.

Mr Guyula said residents need certainty around food access and essential services, warning confidence is already being undermined.

"I want to acknowledge the hard-working individuals and families of the Woolworths community of Gove who have made a home in Nhulunbuy and now face uncertainty," he said.

"It's still unclear what will come after Woolworths, and that's not good enough for the people of Nhulunbuy or the many Aboriginal homelands and communities that rely on the supermarket."

In a statement, a Woolworths spokesperson told National Indigenous Times the Nhulunbuy store was one of their most remote and difficult to access. Having been built more than 50 years ago to service the community around the mine, Rio Tinto's exit means the company are "considering how the mine's closure will impact our store's viability".

"We are in conversation with another organisation about whether they would like to take over the running of the supermarket," the spokesperson said, adding that if it goes ahead, Woolworths expects it to be finalised by June 30 next year.

"We are in close consultation with our Nhulunbuy team members, traditional owners and the wider community, and we understand the importance of providing certainty for our customers and team as soon as we can."

The concerns come as broader efforts continue to secure the long-term future of the region. SBS reported a delegation from the Rirratjingu Clan travelled to Canberra this week to lobby federal ministers.

The Gove Peninsula has long been central to Aboriginal land rights in Australia. It was the site of protests by Yolŋu clans in 1963 over a lack of consultation and consent regarding mining approvals on the Arnhem Land Reserve.

Those protests led to the Yirrkala Bark Petitions, signed by 12 Yirrkala residents — nine men and three women — and sent to Canberra, ultimately contributing to the development of Australia's first land rights legislation.

"The Yolŋu people weren't protesting against mining, per se," Clare Wright, Professor of History at La Trobe University, told National Indigenous Times in 2024.

"They weren't protesting the digging up, because people had come and taken resources from their land for centuries already. What they were protesting against was not having been consulted in that process, and seemingly getting anything in return, because those two things alone broke Yolŋu law."

Rirratjingu Aboriginal Corporation chair, Wanyubi Marika, told SBS he hoped the post-mining transition could create new economic opportunities, including cultural tourism.

"We are private sector, we invest locally, but governments need to provide the essential services, schools and roads," he said. "We have a vision to show ourselves, investing for our economic survival," he said.

As mining winds down, the lease over Nhulunbuy will be returned to traditional owners, marking a major economic and governance transition for the town.

Mr Guyula said he has ongoing concerns that not all Gove Peninsula clans are being properly consulted about the lease transfer, with some excluded from decision-making processes.

He also said residents and business owners — many of whom currently sublease from Rio Tinto — remain uncertain about what the transition will mean for land tenure arrangements.

"This land tenure arrangement could lay the foundation for the next 100 years of the Gove Peninsula, but at the moment it's on shaky ground," he said.

"Important information about which land tenure models are currently being considered has not been made public — there should be transparency so that everyone understands the possible outcomes."

Mr Guyula criticised the Northern Territory Government's handling of the transition, warning the process was being rushed.

"I am questioning whether the Government have set us up to fail by leaving the transition planning so late," he said.

"In Yolŋu culture, we collaborate with others and work together. That's what good decision-making looks like and that's what we need now."