Waikato District Mayor Allan Sanson has confidence in the future of mining in Huntly, despite Solid Energy wanting to cut 105 more jobs.
The company axed 450 jobs last year.
Fifty two of the latest cuts will be in its Christchurch office, and 53 at regional sites like Huntly, Westport and Greymouth.
The company is now a third of the size it was a year ago.
After a poor year, Mr Sanson said he expects coal and underground mining to bounce back.
He said the layoffs are part of a necessary restructuring to make the company profitable again.
Mr Sanson said Waikato has enormous mining potential, and the industry there will improve along with Solid Energy's performance.
Grey District Mayor Tony Kokshoorn also said he is looking for the silver lining in the announcement.