Tasmania's only gold mine will be shut in 2015 in another blow to the west coast town of Queenstown.
Unity Mining will close its Henty gold mine by September next year, putting more than 150 workers out of a job.
It comes as the Mt Lyell copper mine continues to remain closed, with 200 workers stood down following the deaths of three workers in separate incidents last December and January.
The mines are the region's biggest employers.
The Henty mine, which produced up to 50,000 ounces of gold a year, is a victim of a weaker gold price and the fact that Unity has been unable to uncover economically viable new reserves to keep it operating.
Chief executive Andrew McIlwain said a $US300 fall in the gold price from three years ago had taken $15 million in annual revenue out of Henty.
It has a been difficult period, with it also signalling it would halt development of its future Dargues mine in NSW and dealing with a financially embattled major shareholder Singapore's Liongold.
The mine will not necessarily be permanently shut and will continued to produce gold over the next year with exploration in the area to continue and possibly lead to a restart.
All of the staff would get their entitlements, Mr McIlwain said.
"It is unfortunate ... they are not sure if Mt Lyell will re-open so it has been a real kick in the guts for Queenstown over the last couple of weeks," he said.
The company's shares closed 0.2 of a cent weaker at 0.8 of a cent.
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