BHP Mt Arthur closure: Muswellbrook locals concerned about town's future with announcement mining operations will close by 2030

Coal mining doesn't just run in the veins of families, it's the lifeblood of local businesses.

BHP has helped pay for brick-and-mortar services, equipment for sports clubs and brought thousands of dollars into local watering holes as miners stop for a post-work schooey.

For many, losing that feels like a gut-punch.

Louise Hosie has lived in Muswellbrook all her life and comes from a long line of coal miners.

Her children, uncles, brother and cousins are all involved in the industry - it's not just their futures she worries about, it's her grandchildren and the hole that will be left in the community once BHP packs up and leaves.

"We are mining through and through," she said.

"They have fed us, they have afforded us our houses and lifestyles, I worry about what will happen in our community."

As a member of the local Rotary club, Mrs Hosie said she has seen the difference BHP's generosity has made to community services.

Her concern is how those services will meet demand with 2000 people out of job and the money to fund them leaving town with BHP.

"If the government has said we need to move towards net zero, you need to look at the industries and towns that rely upon coal or power generation and make sure those communities are transitioning and going to survive," she said.

"Otherwise suicide rates go through the roof, homelessness goes through the roof - and how is the country going to survive without the billion of royalties we generate?

"I worry about our community more than anything."

BHP announced Mt Arthur Coal operation had been struggling financially for a number of years despite booming coal prices in a statement to the Stock Exchange on Thursday.

It estimates more than a quarter of its Mt Arthur workforce will be at retirement age by 2030.

But the impact isn't just on employees, the flow-on effects of the shutdown will be felt across town, by businesses that supply the mines, community groups that support people struggling and those that rely on the patronage of its workers.

Beckie Osmond is the manager at Eatons Hotel, a popular pub that's built a strong reputation for generously portioned grub.

It relies heavily on the mining industry, not only at the bar but upstairs the accommodation becomes a temporary home for mining contractors.

"It will hurt us there," she said.

"You freak out, because this whole town relies heavily on mining, we all rely on it.

"It's not the first mine that has closed, we have had them close before and new ones open up - but there's no guarantee."

There's plenty of talk about diversification, changing gears and finding new income streams, but Ms Osmond isn't convinced.

"What have we got? We have Pokolbin which is more Singleton way, the horse industry over near Scone but Muswellbrook doesn't have anything else to offer," she said.

About 20km out of Muswellbrook, the small town of Denman with a population less than 2000 people has also felt the blow of BHP's decision.

Jeanette Travers was a member of the Denman and District Development Association and has lived in town for about 50 years.

She said local accommodation is often booked by contractors and there are lots of miners living in the town.

"It will be a shock for people and very trying for them, it doesn't affect us older people and pensioners, but I feel for young couples that are just getting started," she said.

A decade ago, BHP Billiton looked at its own impact on the Upper Hunter communities that rely on the Mt Arthur Mine.

Even back then, there was a significant divide in the community between the 'haves' and 'have nots', where low socio-economic groups experienced less of the benefits of mining - including access to jobs and increased incomes, with all the disadvantages of higher living costs.

BHP accepted that, and vowed to look at opportunities to address those impacts by helping expand health and support services, initiatives to address access to affordable housing and backing business development.

When that support leaves town, it's groups like the Red Door Community Kitchen that will be left holding the bag.

Paula Sinton volunteers with the organisation, which provides a meal once a week to people in need.

"There is a lot of talk about it [the mine closure] impacting the community as a whole, so many people in Muswellbrook are employed by the mines," she said.

"It will affect all of us who provide community services.

"I think probably what will happen is people will move away to be honest, we just don't know, we are talking about large numbers of people out of a job so it could well impact numbers at the kitchen."

BHP has a long tradition of providing financial support to the community and has played a significant role in getting projects off the ground.

Funds from the voluntary planning agreement between Muswellbrook Shire Council and BHP were used to build the new aquatic centre which opens next month - officially called the Mt Arthur Coal Heated Indoor Swimming Pool.

Matt Jeans is the Muswellbrook Amateur RSL Youth Swimming Club president, he said local sports clubs have long been in an envious position to others around NSW.

"I can write a grant to BHP and I don't have to sell sausages out the front of Bunnings every weekend," he said.

"It will have an impact, but it's about the clubs preparing for that and doing their planning two to three years out from the closure to get all the equipment they need to continue a program.

"A lot will have to go back to more traditional funding lines, like standing out the front of Bunnings for a weekend.

"Having the mine sponsor the pool and other things is another sign of the company's commitment to supporting the town."

BHP's closure of its Mt Arthur operations will mark the end of its relationship with the Hunter region, which started with the Newcastle Steelworks establishment in 1915.

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