Detailed Business Case for the Rehabilitation of the Former Rum Jungle Minesite
Open cut mine at Rum Jungle Batchelor in the 1950s and 60s.
Credits: Sneek, Tom
Commonwealth Department of Industry, Science, Energy & Resources (DISER)
Project Objectives
Aalto was appointed by the commonwealth department to prepare a detailed business case to rehabilitate the site of the former Rum Jungle copper and uranium mine at Batchelor, NT.
The project involved extensive liaison with the NT Department of Mines and Energy and Indigenous stakeholder groups, to determine a rehabilitation outcome which would be both acceptable to stakeholders and demonstrate value for money.
The project also required detailed technical and process risk analysis of the ‘do nothing’ and investment options, as well as review of the detailed, multi-stage rehabilitation cost estimate, to meet the expectations of Department of Finance guidance.
The key skills that Aalto brought to the project were options analysis, detailed business case authoring and management skills, economic and financial modelling and evaluation and project delivery advice.
The economic cost benefit analysis for the project was complex, largely due to the absence of typical benefits from the project which could be expressed in monetary terms. Through extensive discussion with the Department of Finance an approach to valuing these impacts established and confirmed, which involved quantification of the risk reduction/removal arising from the rehabilitation project.
The project involved a significant amount of collaboration between stakeholders, including the lead Commonwealth Department (DISER) as well as the Northern Territory Government which was the nominated delivery agency, as established via a National Partnership Agreement.
Aalto's Expertise in Action
Detailed Business case development
Option development
Option appraisal including economic modelling and qualitative assessment
Risk assessment
Procurement options analysis
Project implementation advice.
Outcome
In May 2021, the recommended option from the Detailed Business Case was funded in the Federal 21/22 Budget (confidential total budget). The significant project will take place over a period of eight (8) years, as has been confirmed in the latest budget (2024/25).