Mixed reactions rippled through the Collie community after Premier Mark McGowan this week announced Muja Power Station's two Stage C units, built in 1981, would be retired from 2022.
Mr McGowan spoke to Muja workers about the plan, which will see the first unit retired from October 2022 and the other closed two years later, affecting up to 80 workers.
The Shire of Collie and the Collie Chamber of Commerce and Industry welcomed the announcement, while the state opposition and local unions raised concerns.
Shire president Sarah Stanley said the announcement was good for the community.
"[The announcement] provides Collie with the short-term certainty it needs to allow work to progress in finding new opportunities for workers impacted by changes in the energy landscape," she said.
"The two Muja D units, Collie Power Station and Bluewaters will continue to operate for decades to come, offering stability to the majority of workers and the town of Collie."
Chamber chief executive officer Rebecca Woods said the decision was logical.
"This announcement eliminates the fear that's been brewing," she said.
"It means people will be able to plan ahead and decide what they want to do, whether that be retirement, changing fields or finding new work."
"The minister reassured us they are supporting the mining industry here and making sure the shutdown of units doesn't immediately affect workers."
While Mr McGowan said further announcements would soon be made that would support the local economy, Liberal South West MLC Steve Thomas said a future Collie plan should have been released simultaneously.
"I first raised the impending closure of Muja units in Parliament in September 2017, asking the Labor Government how they would manage the issue," he said. "Until today, their response has been the sound of silence."
Australian Manufacturing Workers' Union secretary Steve McCartney said the closure announcement should have been paired with a plan for the future of Collie.