Two
weeks after BHP Billiton announced it would close its Ravensthorpe nickel mine, shock has turned to despair and
anger.
Despite their stoicism and resolve to make the best of a bad
situation, the residents of Hopetoun and Ravensthorpe face a
grim reality. Some business owners face financial ruin, many
will go bankrupt and those left behind could end up living
in a ghost town.
Houses purchased at peak prices as lucrative investments
will be worth little and the rental market will be virtually
non-existent.
The shire's population which doubled with the mine's
operation will halve. Many low-income earners were driven
away as rents and property prices trebled.
Most of the BHP workers who moved to the idyllic seaside
haven of Hopetoun will have left by the end of the month and
the number of students at the new school is expected to drop
from 195 to 50.
Rumours the mine would close had circulated for months.
But in every small town there are rumours about something or
someone and it seemed it was business as usual for BHP.
Local businesses were being encouraged and supported to set
up shop and workers were continuing to arrive with their
families to live in Hopetoun just days before the mine
closure was announced.
Darren Swain, a site manager for maintenance and project
services company Ativo moved from Roxby Downs in South
Australia to Hopetoun on December 21 with his wife and five
children.
He will have to again uproot his family, along with 80 Ativo
employees who are now jobless.
Mr Swain said the decision to close the mine shocked
everyone.
"The rumours, you just sort of dispel them the best you can
because that was part of my job, to keep everyone focused on
what they were doing,'' he said.
"We expected maybe cutbacks but not closure of the plant.''
On the day of the announcement, workers and contractors were
told to attend safety meetings - what came next was a bolt
out of the blue.
"They segregated the BHP workers from the contractors and
put us up in the wet mess on the site on the 21st and said
we're going to have a stop for a safety meeting and then...
someone got up and read out to everyone the ASX press
release and mentioned that we would all be demobilised that
day,'' Mr Swain said.
No one was more shocked than the workers who arrived just
days before, from as far away as South Africa, to live in
Hopetoun and work at the mine.
Life will go on for the BHP workers - the company is
redeploying them to work at other mine sites and have
reportedly given them packages of up to $70,000 for their
troubles.
But for those who lived in the two towns before BHP, life
will never be the same.
While Ravensthorpe was put on the map when gold and copper
were discovered in the late 1800s, the backbone of the town
has been agriculture.
Mines have opened and closed over the years but agriculture
has remained the backbone of the community.
It will continue to be but the shire has been left to deal
with the prospect of 250 empty houses in Hopetoun, which has
been transformed from a sleepy holiday destination into a
mining community with no miners.
Both Hopetoun and Ravensthorpe have been left with a scar
that will never heal, shire president Brenda Tilbrook said.
"They talk about zero harm on their minesite, I would like
to see them talk about zero harm to our community,'' Ms
Tilbrook said.
Already someone has told her they have thought of committing
suicide and the worst is to come as people struggle to keep
the banks at bay.
Ms Tilbrook is convinced the mine will never reopen. In
fact, she went as far to say she would bet her first born
child on it.
BHP said the decision to close the mine was the result of
diminished prospects for profitability.
A bleak outlook for the nickel market and the capital
expenditure required to meet projected production volumes at
Ravensthorpe was behind the decision, BHP said in a
statement to the ASX.
BHP recognised the concerns of the local community and would
honour any agreements made and keep the community updated,
stainless steel materials president Jimmy Wilson said.
It is of little comfort for local farmer Brad Clarke who has
set up the Stuffed Cocky cafe in Ravensthorpe.
Mr Clarke and his wife Lisa are yet to officially open the
cafe but will push ahead with their plans because they have
already invested in setting the business up and have no
prospect of selling it.
BHP's refusal to speak to small business owners like the
Clarkes has been a source of frustration.
BHP have not been forthcoming with much information which
can assist people who have made commercial decisions because
of BHP and were reliant on BHP business if you like,'' Mr
Clarke said.
"There's been very little information to allow us to know if
the mine is a dead duck and it's never going to reopen or
it's just gone into care and maintenance...''
It's a David vs Goliath type situation.
"The way they do business is not the way people here do
business. I mean, we are up front, open with people and you
tell people when you have an issue, you explain it to them
and you hope they'll understand,'' Mr Clarke said.
"BHP as a multi-national company or as a huge corporate
entity don't operate that way.
"I just don't think BHP takes any notice of the effects on
people - collateral damage if you like.
"I don't think anyone realised that one morning they could
come out and just say: `That's it, it's all over'.''
BHP's refusal to attend any of the many public meetings in
the towns has angered locals. As have offers to businesses
BHP offered financial incentives to set up.
The offers have been described as "insulting'' and
"ridiculous''.
BHP's departure has left the shire with an airport, empty
houses, new roads and facilities to maintain and a raft of
doomed businesses.
Ms Tilbrook said BHP spent seven years convincing the
community the mine was a great thing to invest in and it
would have a 25- to 30-year life.
"So, naturally, it was a terrible shock when it only lasted
eight months,'' she said.
"They spent a lot of money trying to enter this community.
I'd like to see them put as much money into a suitable exit
strategy.
"I don't feel that's happening.''
BHP spokesman Peter Ogden said the company was liaising with
community leaders and the shire.
The company's focus remained on redeploying its workforce
and buying back houses it helped them buy.
"In addition, we have undertaken one-on-one discussions with
a number of local businesses to understand the impact of the
announcement on them,'' Mr Ogden said.
On Wednesday, BHP announced a half year profit of more than
$4 billion.
CEO Marius Kloppers said the Ravensthorpe mine was not "the
finest investment decision the company had made'' and said
it was unlikely to reopen.
As locals rally together and regroup, attention has been
drawn to putting a $100 million road through the world
famous Fitzgerald River National Park.
But that's a long-term prospect and it's too far away to
keep businesses going.
It also risks splitting the community, with some opposed to
exploiting the UNESCO listed biosphere.
WA Regional Development Minister Brendon Grylls is applying
pressure on BHP to fly its workers in and out of Hopetoun to
other mine sites so they can stay in their homes.
But Ms Tilbrook isn't convinced it will solve many problems.
"There may be a small percentage of people who may be
willing to do that, but it will not be a large, significant
amount of people,'' Ms Tilbrook said.
"They came here so their husbands didn't have to fly in and
fly out, and most will go back to where their support
systems are.''
The greatest tragedy is all eyes were on Hopetoun.
"This was a template for the rest of Australia on how to
grow a community, a residential community, how to bring in a
residential workforce for a mine and it was working,'' Ms
Tilbrook said.
And, perhaps the biggest question that remains is how did
the world's biggest miner and Australia's biggest company
sink more than $2 billion into a mine that was flawed?