The small Northern Territory community of Pine Creek fears for its future after indications its biggest employer, the Frances Creek iron ore mine, will close.
The 600-odd residents of the town, about 200km south of Darwin, are heavily dependent on the 320 jobs generated by the mine, but many are due to be cut by the end of the year.
"It's sad that the mine is finishing, but I think it went longer than anyone was expecting," Victoria Daly Council board member Gaye Lawrence told AAP on Thursday.
"(But) blind Freddy could see the price of ore is dropping."
She was unable to attend a town meeting on the subject last week but says the community is abuzz with news that the mine will close.
"I heard the (fly in, fly out) workers are finishing up, but that anyone who lives locally and isn't a cost to the mine because they don't live in the camp would stay on stockpiling ore until December and then it was going to be mothballed," she said.
A resident who declined to be named said she had heard up to 60 per cent of workers would go.
"Nobody knows much ... not even the miners know," she said.
AAP understands the mine has not yet made any formal announcement to the NT government, and is operating at regular capacity.
Mine operator Territory Iron has declined to comment, but in last week's issue of the Pine Creek community newsletter stated that production and processing of shippable ore had been reduced in June due to the challenges of accessing proposed satellite pits at its Elizabeth Marion mine.
It said the proposed approval for mining at that site would require an unexpected and extensive environmental impact statement before work could start.
This would begin immediately but would not be completed until mid- to late 2015, while iron ore prices also remained down 30 per cent on what was projected for the year.
"Rest assured our international teams are working ... hard to maintain their investment in the region," it said.
Ms Lawrence said the FIFO workers did not contribute much to the town's economy because they lived on site, but small contractors had distributed money with local businesses.
The town was a good place to retire but would struggle to attract young people due to a lack of work opportunities, but it would turn to tourism and not go under, she said.
"Pine Creek is a mining town. It's been hard for a long time and the whole town fluctuates with mining," Ms Lawrence said.
"The town will always survive."
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