The state and federal governments believe Northern Tasmania can diversify and create new jobs should TEMCO choose to close its manganese smelter at Bell Bay.
Liberal Bass MHR Bridget Archer has been speaking with federal Industry Minister Karen Andrews about options for the region should the manganese smelter be shut down.
Prime Minister Scott Morrison said the business clearly had an "uncertain" future, but believed the region could rebound.
MORE ON TEMCO'S UNCERTAIN FUTURE:
"These things are a reminder that your economy can never stay still, your economy needs to be constantly diversifying and expanding and looking at new opportunities and new sectors," he said.
"I am concerned about that issue, as I would be about any similar plant in any part of the country.
"What I have also seen around the country is that when these economic circumstances impact on regional communities, I've seen an enormous capability of those places to bounce back and to seek out new opportunities as well."
South32 is expected to provide an update on the future of the TEMCO smelter in October.
The closure could result in 300 job losses.
Premier Will Hodgman said there was "still some time to go in the process".
"It's also important to acknowledge and recognise that we are doing a lot to ensure there are more job opportunities, more investment in this state, more diversification in our economy," he said.
"Our collective effort to transform Tasmania to be Australia's renewable energy battery is one such example."