Leinster Residents Remain Hopeful for Economic Revival Post-BHP Mine Closure

In the aftermath of BHP's suspension of its Nickel West operations, the small town of Leinster, located approximately 970 kilometers northeast of Perth, has witnessed a dramatic decline in its population, plummeting from about 600 to just 220 residents. This significant demographic shift raises concerns about the future of the community, which has historically relied on the mining industry for economic stability and social cohesion.

Established during the nickel boom of the 1970s, Leinster was designed to accommodate workers and their families before the standardization of fly-in, fly-out labor practices became common in the resources sector. Long-term residents like Chloe Craig, who grew up in Leinster, express a desire for their children to experience the same quality of life they enjoyed, although they acknowledge the stark changes in the community since the mine's closure.

The announcement on July 11, 2024, that BHP would suspend its Nickel West operations sent shockwaves through the town. Chloe Craig described the moment as devastating, noting that it felt as if the community's future hung in the balance. Many workers opted for redundancies or were transferred elsewhere within BHP, leading to an exodus of families and a palpable sense of uncertainty about the town’s viability.

According to BHP's Vice-President of WA Nickel, Dan Heal, approximately 350 of the 3,500 employees associated with Nickel West have remained, with a fraction of that number still in Leinster and nearby Mount Keith. The decision to mothball operations came in response to shifting global market dynamics, particularly the emergence of Indonesia as a formidable low-cost nickel producer, which has altered competitive landscapes for Australian nickel producers.

A state agreement established under the Nickel (Agnew) Agreement Act 1974 mandates BHP to provide essential services, including water, power, and housing. This legal framework restricts BHP from abandoning the town entirely, ensuring that certain community services continue to operate. The most recent updates to this agreement require BHP to develop a community development plan, which includes strategies for social benefits and a review of mine closure plans. The next review is scheduled for 2027, providing some glimmer of hope for residents.

Peter Craig, a long-standing community leader and Shire of Leonora president, emphasized the importance of BHP's ongoing investment in the region, particularly with the establishment of a nickel sulphate plant at Nickel West's Kwinana refinery, which could produce enough nickel sulphate for 700,000 electric vehicle batteries annually. This investment bolsters the community's hope for economic revival, even as the local population grapples with the repercussions of the mine's closure.

Local business owners, while acknowledging the challenges posed by the reduced population, remain optimistic. Mathew Read, who moved to Leinster during the pandemic, noted the bittersweet reality of a town reduced in size but still functioning. Tim Fletcher, an electrical contractor, expressed a positive outlook, stating that despite the challenges, he remains committed to his business and the community.

The stark reduction in the community's youth population, from 120 schoolchildren to just 60, underscores the broader demographic implications of the mine's closure. Residents like Santina Morelli, who has lived in Leinster for eight years, lament the loss of vibrancy in the town but express a determination to remain and contribute to its future.

As the community approaches its 50th anniversary in 2026, the question of whether the mines will reopen remains unanswered. For many residents, including Chloe Craig and her partner Harry Reynolds, the desire to stay and see how the situation unfolds is palpable. They, like many others, are holding onto hope that BHP’s commitment to the region will yield positive outcomes in the years to come. Meanwhile, the community’s resilience is tested as they navigate this challenging period, with a watchful eye on the 2027 review that could shape Leinster's future.