Tough times hit mining towns hard

Few need to be reminded of how tough things were during the recession of the early 1980s. Lessons learned then are still fresh in the minds of those who work in the mining industry. What is perhaps less understood is how Canadian communities that rely on mining fared during the early 1980s. A recent study conducted by Barbara Armstrong and Glenn Kendall of the federal department of Energy, Mines & Resources indicates that although those communities took a beating, they managed to weather the economic downturn remarkably well.

The study shows that 115 communities across Canada are at least partially dependent on mining for their economic well-being. Almost one million people lived in those communities in 1981, down about 2.6% by 1986 to 952,631. Mining industry employees in those communities, however, declined to 54,150 in 1986 from 76,322 in 1981, a significantly larger decline than that experienced by the mining industry in general.

It is obvious that those years were not kind to mining communities. Of the 115 mining communities, the total population declined in almost two-thirds during the 6-year period. Almost three-quarters suffered a drop in their mining labor force.

While employment in all aspects of the mining industry fell by 25% between 1981 and 1986, the mining labor force living in mining communities fell by 29%. But despite those setbacks, which undoubtedly had a huge impact on the smaller communities, they managed to adapt and survive.

In fact, the study shows that during the 6-year period (the latest for which figures are available concerning smaller communities), mining communities adjusted to that decline and even prospered by diversifying beyond mining.

At the end of the period, the size of the mining industry’s labor force in relation to the total community workforce had declined, an indication of their broader economic base. Altogether, about 80 of the communities (70%) were less dependent on mining than they were in 1981.

That process has been the hallmark of mine development over the years. Mineral discoveries in the hinterland give rise to communities which then reduce their dependence on the very industry that led to their creation. As those communities mature, they provide the infrastructure and economic foundation for further development of the north.

Mines create wealth for the country by extracting our mineral resources. The contribution that is less easy to measure is their part in pushing back the frontier and fostering the growth of more tax-paying ventures that spring up to meet the mines’ demands for goods and services.

The EM&R study concluded: “The recession in the early eighties meant adjustment for the industry through rationalization. It is heartening to note that mining communities, in varying degrees, also adjusted to continue and in many cases prosper.”

That conclusion may be of small comfort to the men and women who suffered through that period, or the miners in Elliot Lake, Ont., or Kimberley, B.C., who face an uncertain future today as the mines that built those communities come to an end. But the ability to survive one of the bleakest periods in recent times is a tribute to the resilience of those who live in mining communities.