Rosebery Mine Closure Economic Impact Assessment

The Challenge

The Rosebery mine has been operating in Tasmania's West Coast LGA since 1963. It plays a significant role in providing employment and driving economic activity in the region. However, the mine's tailing storage facility is nearing its full capacity, which could lead to the mine's closure.

Tetra Tech Coffey required an evaluation of the potential impacts of the mine's closure on the local economy as part of its closure preparation process. Tetra Tech Coffey specifically wanted to demonstrate the change in gross regional product and employment in the region following the closure.

 The Action

Polis Partners was engaged to conduct an economic impact assessment to quantify the potential economic loss from the mine's closure. The study involved

• analysing historical and current production data, employee location, and closure-related costs
• forecasting economic impacts across three phases: current operations, during the five-year closure period, and post-rehabilitation monitoring
• using the REMPLAN economic model to estimate the direct and indirect impacts of the closure across three regions: Tasmania, West Coast LGA and Rosebery.

The assessment identified that the closure of Rosebery Mine may cause a significant reduction in employment and economic output across Tasmania, the West Coast LGA, and Rosebery, decreased household income and spending, impacting local businesses and potential cause a population decline in affected areas, further stressing local economies. The assessment did however uncover potential opportunities for increased tourism and economic diversification post-rehabilitation, offering a potential avenue for economic recovery and growth.

The Results

The study provided stakeholders with a comprehensive understanding of the economic impacts, enabling informed decision-making and strategic planning to mitigate adverse effects and explore new economic opportunities for the region.