Mining giant BHP Billiton is considering a housing buyback as part of a package for workers laid off at its Ravensthorpe nickel mine, the West Australian government said on Wednesday.
The mine will be mothballed after BHP announced last week up to 1,500 workers would lose their jobs.
While West Australian Mines Minister Norman Moore held a news conference to outline an offer to the community being considered by BHP, a company spokeswoman refused to confirm the details.
Mr Moore told reporters: "They are seeking to redeploy as many of their employees as they can in the BHP Billiton group.
"And there are vacancies at Nickel West, at the iron ore operations at Worsley Alumina and they have indicated to us there could be a couple of hundred jobs available as redeployment options."
BHP was also considering buying back the houses of those who moved to the area and offering financial assistance to businesses who will lose out, the government said.
BHP spokeswoman Sam Evans told AAP she could not confirm any details apart from 14 weeks' redundancy pay on top of legal entitlements.
"I can't confirm any of that at this stage," Ms Evans said.
Employees who quit other jobs to go to work at Ravensthorpe would also be offered relocation back to their original place of work, Mr Moore said.
Discussions were also under way with individual businesses.
"Obviously those companies that were directly encouraged by BHP to go to those towns will be looked after on the basis that they were part of an incentive program," Mr Moore said.
"Other businesses that may have been there already will be assisted, I presume, but perhaps to a different extent."
Mr Moore said he hoped it was a short-term closure.
"I hope ... the company will look after its assets, the government will assist the shire to look after its and that down the track this project will reopen," Mr Moore said.
"Hope springs eternal in the human breast obviously but one must look at the history of the mining industry and see that this has happened on many occasions in the past and no doubt will happen many times in the future."
Mr Moore also urged BHP to make a public statement about its plans for the community.
"I would encourage them to tell you and to tell the West Australian community what they have in mind because what they've told me so far seems to me to be heading down the right track."
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