State Government acts over Ravensthorpe mine closure

Acting Premier Dr Kim Hames has outlined the State Government's quick response to BHP Billiton's mothballing of the Ravensthorpe nickel mine.

Dr Hames said Premier Colin Barnett would break his leave tomorrow and fly to Ravensthorpe with Regional Development Minister Brendon Grylls to assess the situation on the ground.

"The State Government will provide support wherever it can and is already in discussion with the Commonwealth Government regarding how we can co-ordinate services to those who have lost their jobs," Dr Hames said.

"It is expected that the Premier and Mines and Petroleum Minister Norman Moore will meet with BHP early next week to discuss a way forward and ensure that workers' entitlements are honoured in full."

The directors general and chief executive officers of Government departments and agencies will hold discussions today to determine the best way to provide support and manage the impact of BHP's decision on the local communities of Ravensthorpe, Hopetoun and Esperance.

The Acting Premier said the global economic crisis had caused many companies to reconsider individual projects and BHP was no exception.

"Ultimately, market forces drive the mining industry," he said.

"It is unfortunate that workers from the Ravensthorpe project are having these difficulties but I am hopeful there is still enough demand for labour in other areas of the resource industry, that those employees can transfer their skills to other mine sites.

"These are tough times and no one should underestimate the trying times ahead. As a Government we will do everything we can to protect and encourage jobs."

Mr Moore said that the State Government had worked hard since coming to power to improve the abysmal approvals system it inherited from the previous Labor administration.

"Fixing the approvals system provides certainty and confidence in the resources sector and helps increase Western Australia's reputation as a place to do business," he said.

"It is hoped this will stimulate and encourage further exploration activity (providing more jobs) so that companies can identify tomorrow's opportunities."

The Minister said it was possible that Ravensthorpe workers would be able to find alternative employment in other areas of the mining and resources sector.

Premier's office - 9222 9475

Mines and Petroleum Minister's office - 9422 3000