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🇦🇺 Australia /Economy & Trade

Western Australia Coastal Town Braces for Economic Pain as Mine Closure Costs 100 Jobs

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Mineral Resources (MinRes) will close its Lucky Bay garnet mine near Kalbarri, Western Australia, from July 1, costing over 100 jobs.
  • The company cited increased diesel costs and the conflict in the Middle East as reasons for the closure, impacting sales.
  • Local officials anticipate a significant economic blow to the coastal community, affecting retail and hospitality businesses.

A small coastal community in Western Australia's Midwest is facing significant economic uncertainty as the closure of the Lucky Bay garnet mine is set to eliminate more than 100 jobs. Mineral Resources (MinRes) confirmed the closure of the project, located near Kalbarri, approximately 600 kilometers north of Perth, effective from next week.

It is very significant, 110 jobs. Whilst not all employees lived in the district, the majority would, and Kalbarri will be severely impacted by this closure.

— Andrew CampbellThe Shire of Northampton chief executive describing the impact of the mine closure on the local community.

The company, led by Chris Ellison, stated that a "strategic review" identified increased diesel costs and the ongoing conflict in the Middle East, which affects a substantial portion of Lucky Bay's sales, as key factors necessitating the mine's placement into care and maintenance. Garnet, a hard mineral primarily used as an industrial abrasive, will no longer be extracted from this site.

It will have an immediate effect on the individuals, but those employees would have families as well, so it is likely to have a very significant short-term impact.

— Andrew CampbellCampbell elaborating on the broader consequences of the job losses.

Andrew Campbell, chief executive of the Shire of Northampton, described the sudden closure as a "significant blow" to the local economy. He expressed concern that the job losses could force residents to leave Kalbarri, a town of about 3,500 people with limited alternative employment opportunities. Campbell anticipates a "pretty sombre mood" descending upon the community once the initial shock subsides, with immediate and substantial short-term impacts on employees and their families, and considerable ripple effects on the retail and commercial sectors.

The flow-on effects of that in terms of the retail and commercial sector are likely to be quite huge.

— Andrew CampbellCampbell detailing the expected impact on local businesses.

MinRes indicated in a statement to the ASX that it would explore redeployment options for affected employees and assess all future possibilities for the Lucky Bay site, including a potential divestment. The company expects to record a $40 million loss in its upcoming financial accounts. This closure occurs less than a year after MinRes acquired the operation from the administrators of Resource Development Group, a move that had initially brought some hope for the mine's revival.

I think once [the Kalbarri community] overcomes the shock, it will be a pretty sombre mood.

— Andrew CampbellCampbell predicting the community's emotional response to the closure.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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