Prime Minister Tony Abbott will use his second day in Arnhem Land to meet local employers and their workers.

After spending his first night in a tent on the outskirts of Nhulunbuy, the prime minister will spend Monday visiting a Gumatj mine, timber mill and cattle station.

He’ll have morning tea with local employees and work with tree loppers.

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The north-east Arnhem Land town was rocked last year after Rio Tinto announced the closure of its alumina refinery – costing about 1000 jobs.

That’s about a quarter of the town’s population.

Galarrwuy Yunupingu, the head of the Gumatj Aboriginal Corporation, and the CEO of the Yothu Yindi Foundation, will have dinner with Mr Abbott on Monday night.

Mr Abbott arrived in Nhulunbuy on Sunday, hours after announcing the deployment of 600 Australian troops to Iraq to help combat Islamic State.