Hauraki mayor John Tregidga says his council will ‘pull out all stops' to support those who've lost their jobs as a result of today's announcement from Newmont Waihi Gold.

The mining company has terminated its contract with Macmahon Contractors Ltd as it investigates the safety of the Martha open pit mine, resulting in 50 permanent staff losing their jobs.

Hauraki District Council major John Tregidga says it's been a ‘rough day' following Newmont Waihi Gold's announcement it has terminated its contract with Macmahon Contractors Ltd today. Photo: Donna Walsh/stuff.co.nz

The mayor was aware a slip on the north wall in early April had made operations in the Martha open pit challenging but he had hoped a solution would be found.

'But safety comes first and I understand why they [Newmont] have suspended mining in the pit while investigations are ongoing,” he says. 'I only hope it's temporary because for a district made up of small townships like ours, losing 50 jobs is a bitter blow.”

John says they would support any efforts to help people find work and there is already talk of a job fair to help those affected, which council would back 'one hundred per cent”.

'The last thing we want is our people being without work, or having to leave the district to find it.”

The Hauraki council already had an aggressive economic strategy to stimulate activity. Last May Chinese-based Allied Faxi Food announced it would build a $10 million ice-cream factory at Kerepehi.

The factory would create between 40 to 50 new jobs and the council actively pursued the investment.

'That's progressing very well but start-up is a way off yet,” elaborates John. 'We have got one or two other initiatives of a smaller scale on the books so we're certainly not sitting back doing nothing.

'It's not all bad news but it's a rough day today for those who have lost their jobs – there's no doubt about that. In the short-term we have to focus on what practical support we might be able to offer.”

John says the council had already written to Newmont Waihi Gold, seeking formal assurances about safety and ongoing monitoring of the open pit.

Underground mining and milling continues to operate at the site as normal.