Woolworths will close its Nhulunbuy store next year due to viability concerns ahead of the scheduled 2030 closure of the nearby Rio Tinto Gove bauxite mine that will lead to an expected drop in population and economic activity, with the Chief Minister saying the region needs more private investment but was short on how that would happen.

Woolworths has operated in the town since 1972 and said this week it aims to finalise its exit by June 30, 2027, but is currently in talks with another organisation regarding the potential takeover of its management.

Regional leaders are concerned the government has not done enough to ensure the essential service remains.

The Nhulunbuy outlet is crucial to the food security of more than 3,000 residents and nearby Yolŋu Aboriginal homelands within a 1,500-kilometre radius. It relies on a fragile supply chain, with food shipped by barge taking several days to get to the store.

A Woolworths’ representative said the Nhulunbuy outlet was one of the supermarket chain’s most remote stores.

“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,” a spokesperson told ABC.

“All stock is delivered by ocean barge, making it our most difficult store to access.”

Local Member Yingiya Guyula expressed concern and urged the CLP Government to do more.

“It is extremely disappointing that Woolworths is turning its back on our regional and remote communities,” Mr Guyula said in a statement.

“The people of North East Arnhem Land need confidence that there will be food security and that services will continue to be delivered in the years ahead. 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.

“The CLP government have not done enough to lock in big businesses for longer and use their connections and influence to secure these essential services,” he said.

Responding to a question from Mr Guyula in Question Time on Wednesday, Chief Minister Lia Finocchiaro said she had made “a number of visits out there”.

“And so what we are really focused on, is having a really good outcome for that town,” she said in Parliament.

“But the longer the time ticks towards that [mine] closure, the concern then is that the private sector pulls away and that’s what we’re seeing with Woolies.”

She added it was unlikely another employer the size of Rio Tinto would come to town.

“So, it’s going to have to be a series of opportunities, in which case we need the community to be ready and embracing of that,” Ms Finocchiaro said, without providing details of what that would entail.

“So all of that work is going really, really well. The tempo, as I said, has certainly picked up.

“I know Woolworths have indicated that they’re working with ALPA [Arnhem Land Progress Aboriginal Corporation] or someone else to take over, but we’ve got to make sure that we’re doing everything we can to maintain the population at Nhulunbuy, which means there has to be jobs, which means there has to be private sector investment and that’s the work we’re continuing to do.”

ALPA did not confirm if it was in talks with Woolworths to take over the store.

A month ago, the CLP Government appointed Oly Carlson, the Member for Wanguri, as the assistant minister for Nhulunbuy Transition to oversee the shift away from bauxite mining on the Gove Peninsula. The new role was prompted by the impending mine closure, which will greatly affect Nhulunbuy and nearby communities reliant on the mining industry.

The availability of services and recreational options during this transition period has become increasingly concerning for the people of the region.