An economic taskforce has been set up to help Tasmania's struggling west coast after hundreds of workers lost their jobs in the closure of the Mount Lyell copper mine.

The mine shut down six months ago after the deaths of three workers in two incidents, and a rock fall in a crucial ventilation shaft last month sealed the mine's fate, with the owners placing the troubled operation into care and maintenance on Wednesday.

About 200 workers have been made redundant; 38 will stay on for a few months to rehabilitate the area where the rock fall happened and another 15 will look after the site.

With job losses at the nearby Henty gold mine, over 350 people will soon be out of work.

The State Government announced it would establish a West Coast Economic Working Group to help the region recover from job losses.

Premier Will Hodgman addressed a community meeting this morning in Queenstown, telling locals the new jobs taskforce will meet for the first time tomorrow.

More than 100 people gathered at the city's council chambers, eager to hear what the State Government planned to do now the mine's closure has been confirmed.

There was real concern among the West Coast community that workers and their families would leave now there was no work.

Premier Will Hodgman talks to Queenstown locals about the West Coast Economic Working Group. ( ABC News: Annah Fromberg )

The Premier told the meeting the working group would include the West Coast Mayor, Copper Mines of Tasmania, the workers' union and community representatives and would be chaired by Liberal MP Adam Brooks.

"[It] won't be overflowing with politicians, we want this to be a community-led response," he said.

Mr Hodgman said the group would provide workers with training and help them find new jobs, as well as seek new investments to try to create jobs.

Mr Brooks wants the community to engage with the Government.

"There are no magic bullets, or instant solutions but what we want to know is what the community would like us to focus on...not just look at the short-term needs of services from government, but really what can we do to help build the economy on the west coast and Queenstown," he said.

"And also what other industries or opportunities are there that need government to play its part in helping those opportunities become realities."

Mr Brooks said while the miners and their families were devastated by the closure, wider support was needed.

"There are so many contractors and service providers out there that survive financially because of the mine operating," he said.

Working group objectives Create a central point for community input

Create a central point for community input Provide workers with skills training to find new jobs

Provide workers with skills training to find new jobs Actively seek new investments to create new jobs

Actively seek new investments to create new jobs Fast-track existing and potential infrastructure and capital expenditure projects

Fast-track existing and potential infrastructure and capital expenditure projects Provide financial and social support services

Provide financial and social support services Work with Copper Mines of Tasmania to assist ongoing exploration

"Now that's about to cease and they don't have as many protections in place as others, so we need to be wary of not just the service providers, but also the business community on the west coast, that thrives when the mine is going well, but when it's not, it's very hard for even takeaway shops, coffee shops to remain viable in the short to medium term, because they are so reliant on this operation.

"So we need to look at all those things, provide some mentoring and mental health services, also business support services and making sure that we are working with the business community as well as the employees and affected by this."

Employment advice, mental health support and a three-month financial service are being offered to redundant Mount Lyell workers.

Resources Minister Paul Harriss said the focus was on finding jobs for the affected workers.

"That is a process that will need to be worked through sensitively and the Premier will announce the plans which the Government has worked closely with Copper Mines of Tasmania to put in place," he said.

The West Coast Mayor is looking to tourism and salmon farming to fill the void, and is confident the economy will bounce back.

Robyn Gerrity said the news of the closure has hit the community hard.

"But we're really going to try and hold everyone together and look for a bright future for Queenstown," she said.

She said the council would work with the State Government to identify alternative industries for the region to prevent an exodus of workers.

Other options being fast-tracked

The prospective new owners of the Avebury nickel mine in Tasmania's west are speeding up efforts to reopen the mine in light of the Mount Lyell closure.

Avebury Nickel Mine Limited has agreed to pay about $35 million for the mine near Zeehan, which has not been in production since 2009.

Production at the Mount Lyell copper mine stopped in January following the death of three workers. ( Rick Eaves )

Doug Daws from Avebury Nickel Mine Limited said the company hoped to reopen the Avebury mine late next year.

"We're working perhaps more quickly than we might have," he said.

"We have been in communication with the Tasmanian Government and with Robyn Gerrity, the Mayor of the North West Council, assuring them that we are doing everything in our power to get this thing back into operation as expeditiously as we can."

The Minerals Council said two mining developments planned for the West Coast - the Avebury nickel mine and Venture Minerals' Riley Creek iron ore venture - were no comfort to mine workers.

The council's chief executive, Jeremy Kouw, said neither would commence this year.

"People do swap industries, so in the mining industry where we were in a boom period a number of years ago, we certainly saw employees come out of the agricultural and forestry industry move into the mining industry," he said.

"There's a potential for people to be retrained and move back into those industries."

The owners of the Mount Lyell mine, Copper Mines of Tasmania, have said exploration will continue, but reopening the mine will not be considered for at least 18 months.

Union fears for rail future

The Rail, Tram and Bus Union said it was concerned about the impact of the Mount Lyell mine closure.

State-owned rail company TasRail transported copper concentrate from Melba Flats to the port of Burnie until production stopped in January.

Union spokesman David Payne said uncertainty over several west coast mines could threaten the company's most profitable routes.

"TasRail's just bought new locomotives and new wagons with the expectation that there is going to be greater volumes of ore carted," he said.

"It is a real concern. TasRail really does rely on that income, and without it could certainly impact on the bottom line."

TasRail said was disappointed Mt Lyell was closing, but its transport and loading services for other west coast miners will continue.