The proposed departure of Woolworths from Nhulunbuy has drawn strong concern from a local Aboriginal corporation, who say locals have not been listened to by the supermarket giant.

The town on the Gove Peninsula is already facing economic uncertainty following Rio Tinto's decision to wind down operations at its bauxite mine, the region's largest employer.

Home to more than 3,000 people, including 13 Yolŋu Aboriginal clans, Nhulunbuy now also faces the possible closure of its only major supermarket, which relies on barge deliveries that can take several days.

In a statement, the Rirratjingu Aboriginal Corporation said it was "deeply disappointed and concerned" by the development, which comes only days after a recent visit to Canberra by chair Wanyubi Marika to "shore up confidence in the region".

Mr Marika said the isolation of East Arnhem Land makes the community particularly vulnerable and warned of "serious consequences for any disruption to existing food providers". He noted that without Woolworths — which has operated in the town since 1972 — there is "no viable alternative in place".

"We were assured by Woolworths that they would listen to us, work with us, and consider the voices of our people in their decision-making actions," he said. "Instead, Woolworths has failed to bring us into their conversations. They announced their plan without any meaningful consultation with us, or other regional stakeholders."

Speaking to ABC Radio, Minister for Indigenous Affairs, Malarndirri McCarthy said an interdepartmental committee had been established to coordinate a response. She said she had also spoken with Northern Territory Chief Minister Lia Finocchiaro, who has visited the region, with both governments aware of the concerns.

"I'd certainly like to also personally reach out to Woolies. I don't think you should ever say never," Senator McCarthy said.

"I think that there's a real reason to stay. I'd like to see if we can do that. We know that good food, healthy food and food security in terms of moving forward is critical for everywhere, but in particular for Nhulunbuy."

A Woolworths spokesperson said the Nhulunbuy store is one of the company's most remote and difficult to service locations. Built more than 50 years ago to support the mining community, its future is now uncertain as Rio Tinto prepares to exit.

"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 any transition could 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."

Rio Tinto is expected to leave the region by 2030, with the lease over Nhulunbuy to be returned to Traditional Owners, marking a significant economic transition.

Member for Mulka, Yiŋiya Guyula, said he was disappointed by the prospect of Woolworths leaving by mid-2027, arguing the Northern Territory government had not done enough to retain major businesses or secure essential services.

"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."

The Rirratjingu Aboriginal Corporation said it would not "abandon" affected communities and would instead "harness the demonstrated resilience of the region and lead the development of an effective solution".

Woolworths' Reconciliation Action Plan, which expired in 2025 and has not yet been replaced online, states the company "stays true to Woolworths Group's purpose of creating better experiences together for a better tomorrow".

"By moving from safe to brave, and leveraging our collective strengths, we look to address the targets outlined in the National Agreement on Closing the Gap..." the plan states.

"Our vision for reconciliation is an Australia where First Nations peoples have equitable access to the essential products, services and opportunities they need to truly thrive for a better tomorrow."

Mr Marika said those commitments had not been reflected in recent actions.

"These stated values of care and commitment to better outcomes have been fundamentally undermined by the recent approach Woolworths has taken with our community," he said.

He said the corporation had formally invited Woolworths chair Scott Perkins and chief executive Amanda Bardwell to visit Nhulunbuy.

"We are calling on Woolworths to come back to the table and work with us, along with the Nhulunbuy community, other Traditional Owner groups, and governments," he said.

"To work with us on developing a fit-for-purpose solution that serves the interests of all stakeholders."