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Newcastle Herald
Newcastle Herald
Business
Ethan Hamilton

Business calls for direction to avoid 'ghost town' future in wake of BHP closure

Government intervention: Owner of Southside Newspower Newsagency and Aah Pizza Bella Pizzeria, Rohit Mahajan, said his business is "100 per cent dependent on mining customers". Picture: Mathew Perry

NEWS that Mount Arthur will be closing by the end of the decade reignited persistent issues of uncertainty for Muswellbrook businesses.

The BHP-run mine has approval to extract until 2026 and previously applied for an extension to 2045. On Thursday, BHP bought that target forward to 2030.

Shannon Bowen, the founder of Muswellbrook small business Hunter in a Basket, said the announcement came as a shock.

"The hardest thing is it's a very big gamble trying to run a small business so right now it is quite a bit of a shock and it will sting people a bit, losing this big company," Ms Bowen said.

"But I guess it's really hard to tell. Will something else open up or is this gone for good?"

An ever-present concern for small businesses, Ms Bowen said, is that there is "no real plan" for the region.

"Muswellbrook is such a small town and it relies on our mines to keep it going so once that's over I guess there's not really certainty. There's not much really here to offer other than it just being a small mining town," she said.

"It would be nice to get a bit more support for small businesses around here and our mining is really the biggest support you can get."

Muswellbrook mayor Steve Reynolds and Chamber of Commerce president Mike Kelly both said the BHP decision is not an indication mine closures in the region will be brought forward.

"There's no evidence that other mines will be following suit. Our understanding of the mining companies' decisions is that they are still looking to a long term demand for their product," Mr Kelly said.

"Muswellbrook businesses' position generally is that we should continue mining for as long as there is a market."

Strong future: Chamber of Commerce president Mike Kelly. Pictures: Simone De Peak

Mount Arthur currently has around 2000 employees. Cr Reynolds, who used to work at the mine along with his father and brother before, said his primary concern is for the future of workers.

"I have a number of friends out there and I do worry about their future," Cr Reynolds said.

"Around 150 of those employees are 60 years and older and that comes at great time for their retirement. But a lot of people out there are still young.

"It's about working closely with the mines and people in our shire to ensure a steady path for those people directly and indirectly affected."

Cr Reynolds said Muswellbrook needs to see intervention from state and federal government to secure the region's future, especially in terms of unlocking mine buffer land for alternate uses.

Owner of Southside Newspower Newsagency and Aah Pizza Bella Pizzeria, Rohit Mahajan, said his business is "100 per cent dependent on mining customers". Mr Mahajan, who is a local councillor, also called for government intervention.

"They don't need to wait for the last minute, they need to start to do something to save the community and keep Muswellbrook on the map," Mr Mahajan said.

"If you look at the history, whenever any mining goes from the town, it becomes a ghost town. We don't want Muswellbrook to become a ghost town.

"We want Muswellbrook to diversify, to bring the industry to transition to other things that we want."

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