Lithgow mayor Maree Statham has told EnergyAustralia the city was "open for business" during a high profile meeting.
Cr Statham met with the board and senior leadership of EnergyAustralia, as well as community organisations and local indigenous residents, at a dinner on June 20.
"I was very pleased to welcome the board of EnergyAustralia to this city. It provided me with the opportunity to thank the company for the contributions that it makes to this city in terms of employing local people," said Cr Statham.
"There are many direct and indirect jobs created for locals through EnergyAustralia's Mt Piper operation and its related activities. In fact the electricity sector's value added contribution to the Lithgow economy is about 13 per cent of the total - making it the second largest sector. EnergyAustralia are also embedded into the community in other ways with a range of local funding and partnership initiatives."
Cr Statham said in many ways "the city of Lithgow and EnergyAustralia are on a shared journey".
"We both know that a range of factors, all beyond our influence, will have the effect of reducing the value of thermal power generation. We both will need to find other ways to not just survive but to thrive into the future."
Lithgow City Council is in the process of creating a Lithgow Emerging Economy Plan which aims to reshape, diversify and grow the city's economy.
"Shifting a long-established local economy is difficult and in most cases in the past it has failed because the interventions come too late or are misguided," said Cr Statham.
"Lithgow Council however has developed the Lithgow Emerging Economy Plan to guide it on this city's economic diversification journey. One of the necessities for success will be the way in which we work, positively, with the private sector to attract investment and new jobs. I assured EnergyAustralia, as I do other investors and developers, that Lithgow is open for business."