Alyangula is located on Groote Eylandt, off the western coast of Arnhem Land. This mining town is to the north of the beach at Milner Bay on the island. The settlement of Alyangula appeared when the Groote Eylandt Mining Company commenced with their manganese mining operations in the vicinity in the 1960s.

The manganese is used in the production of steel. In 1961 the Anglican Church Missionary Society had acquired the rights to prospect on the island, on behalf of the Aborigines. These permits in turn were acquired by the Groote Eylandt Mining Company. They agreed to pay an annual sum plus royalty fees to the Aborigines. These went into a trust Fund and have helped in numerous community projects.

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