STAWELL Gold Mine will stop underground mining by the end of next year.
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The mine's parent company Crocodile Gold announced the move in a statement about production results for the second quarter this year.
Crocodile Gold bought the mine, along with Fosterville Gold Mine, in May.
In its statement on Monday, the company said it had completed operational reviews on the Stawell mine. It said it decided to 'transition the operation' and complete underground mining by the end of next year.
But Northern Grampians Shire Council chief executive Justine Linley said the mine still had plenty of life ahead.
"They still have surface mining and processing,'' she said.
"Don't close the gate and padlock the joint just yet.''
Stawell Gold Mine is the second largest gold producer in Victoria, behind Fosterville.
Crocodile Gold, a Canadian company, also has mines in the Northern Territory.
Mrs Linley said there was change ahead for the Stawell mine.
She said a group formed in 2007 to prepare for the mine's eventual closure.
"Eventually it will close because the resources are finite,'' she said.
"But there's still significant life left in the mine.
"The main thing is we're not going under and we're not panicking.''
Mrs Linley said council supported the mining industry in the Wimmera.
She said the land was rich with valuable minerals.
"I see a huge future of mining in the region,'' she said.
The Stawell Gold Mine's modern operation spans 27 years. It produced its two-millionth ounce of gold in March, 2010, and employs about 300 people.
