WEST Tamar Mayor Barry Easther tried to put on a positive face yesterday on news the Beaconsfield goldmine would close next year.
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BCD Resources NL announced during its annual meeting at Beaconsfield that the mine would close at the end of June.
The mine and processing plant has 103 full-time employees, 16 casuals and 32 contractors and unions have warned the closure could devastate workers and the economy.
BCD Resources NL chief executive Peter Thompson said all employees' entitlements were guaranteed.
Cr Easther said the mine would be missed, but he was confident other industries and a proposed nickel mine would sustain the region.
``It's very disappointing - we always knew, of course, that the mine had a finite life and it had a very long one, but I didn't think 2012 would be the year it would close . . . it came as a shock,'' he said.
``There will be a varying number of effects . . . some businesses will be affected more than others but we hope that the tourism industry, which has been growing over the past few years, will in some way compensate for the closure.''
However, Australian Workers Union national secretary Paul Howes said the closure would have a considerable impact.
``The closure will hit hard the economies of Beaconsfield, Launceston and Northern Tasmania as 150 workers, and their families, look for alternatives in a tight labour market,'' Mr Howes said.
He said the AWU would go into talks with the owners of the mine.
Deputy Premier Bryan Green said the government's priority was to support the workers, their families and the West Tamar community.
``The mine has a diverse and colourful history but sadly it appears to no longer be a viable operation,'' Mr Green said.
``Our first thoughts are with those who will be directly affected by the closure and we will work closely with unions and employees to provide assistance.''
Tasmanian Minerals Council executive director Terry Long said he could understand the economics behind the decision.
``I think it sort of underscores the need to get the venture mine on the West Coast up and running so there's no net loss,'' he said.
Mr Thompson said the company was closing the mine as it was no longer viable to mine at a depth of 1210 metres at the current gold price.
``The company will continue to review the mining plan and mine life should the gold price continue trending upwards,'' he said.
