Grey District Mayor Tony Kookshoorn said the receivers had indicated there would be job losses some three months ago.
"It was always an indication by the receivers that this was what they were doing and this is happening according to what their plan is.''
Mr Palmer said it was very hard to leave.
"I feel like the job hasn't been completed.''
However, he said it would be a bit of a break and he was already speaking to people about work in Australia.
Mr Kookshoorn said Mr Palmer had done everything he could to help the recovery process.
"He's done a spectacular job and I would say Martin will find it hard to be away from the mine now because he's so close to his son. It's unfortunate but that's the way the receivers decided to go. But certainly he's a dedicated dad and he's prepared to do anything, and I'd say he will still do anything to help the recovery.''
Before the disaster in November 2010 the newly developed mine employed 157 staff.