Tasmania's west coast mining contractors struggling to keep businesses afloat

Mining contractors on Tasmania's west coast are struggling to keep their businesses afloat as they wait for news about the future of the Mount Lyell copper mine.

The deaths of three Queenstown mine workers and the shutdown of their employer marked the start of a grim year for mining on Tasmania's west coast.

Ten miners were made redundant this month as the Henty gold mine began its gradual shutdown.

There is optimism that mining at Mount Lyell and Avebury will resume next year, but the uncertainty has hurt dozens of contractors.

Simon Dilger will not be doing his annual Christmas Day fuel run to Mount Lyell this year.

The transport contractor said he lost 60 per cent of his business when a fatal "mud rush" stopped production at the copper mine in January.

"The mine closure's been a huge problem for us to continue sustainability of our business," he said.

Warren Moore from the Braddon Business Centre is teaching them how to diversify.

"For every one direct employment [in the mine] there's probably five employed outside. That's the issue that I've been concerned with, that there is a silent but large number of people that have been impacted by Copper Mines of Tasmania and very little assistance for them," he said.

Mr Moore said it was also important the tradespeople learned how to self-promote.

"They are good at what they do and probably better in lots of other cases and they need help in working that out," he said.

"I mean a simple thing like customer contact, how do you ring up and talk to somebody who you don't know, who doesn't know you and be able to obtain business out of that?

Tradesmen, like electrical contractor Shane Pitt, are tendering for government projects including upgrades to public service housing.

"But it's hard to compete with some of the companies that come down from the north-west coast, because they've got a bigger market up there they can get equipment a lot cheaper than we can," he said.

He is one of several contractors trying to survive on sporadic work for the mine's care and maintenance.

"We've been out there looking for other customers but I suppose Mount Lyell was our bread and butter," he said.

Mr Dilger said uncertainty about the mine's future has left businesses in limbo.

"Some equipment is just standing idle but we are hopeful that it's for the right reasons, we're holding on for the right reasons," he said.

The contractors have a reason to hold on.

In March, Copper Mines Tasmania plans to submit a proposal to its board for the resumption of mining using a new, safer method.

West Coast Mayor Phil Vickers said the company was confident in the mine's future.

"They've done some major drilling underground, proved up some more resource there, they've also proved up a resource on another spot on the lease which doesn't currently have environmental permits to mine, so those two ore resources together would give the mine a new life," he said.

Unity Mining is running out of ore at its Henty mine near Zeehan and is expected to close by September next year.

General manager Scott Jones said exploration had stopped and production was gradually winding down.

"We will finish mining new tunnels in January, so we've got about 10 people that are being made redundant at the end of December," he said.

A West Australian company is finalising its purchase of the Avebury Nickel Mine but is not ready to detail plans for its reopening.