Nhulunbuy is a town and locality in the Northern Territory of Australia. Founded on the Gove Peninsula in north-east Arnhem Land when a …Nhulunbuy is a town and locality in the Northern Territory of Australia. Founded on the Gove Peninsula in north-east Arnhem Land when a bauxite mine and deep water port were established in the late 1960s, the town's economy largely revolved around its alumina refinery until it closed in May 2014.