The Social Dimension of Sustainable Development and the Mining Industry

Previous Table of Contents Next

Historical Background

The history of mining in Canada can be divided into four main phases. At first comes Aboriginal mining prior to European settlement. Then, from the mid-1800s to the mid-1900s, mineral resources were exploited in a harvest and move pattern which was, at the time, the mode of exploitation of all natural resources. This phase was slowly replaced by one in which the mineral resources were seen by governments as a tool for ensuring economic development; this phase can be seen as extending from the mid-1900s to the late 1960s. Then, in the late 1960s and early 1970s, environmental concerns began to change the mining scene. We may now be in a fifth phase where natural resources, including mining, are being considered in the context of their contribution to sustainable development and the Canadian social fabric.

In this context, the following discussion will attempt to highlight the main impacts of the mining industry on the social fabric of Canada during each of the first four phases. The present phase will be considered in later sections of this paper.

2.1 Mining Prior to European Settlement

The first mines in what was to become Canada were dug and exploited by Aboriginals. Copper was dug by Aboriginals in the Lake Superior area for over 5000 years until about 1000 A.D. (Udd, 2000). Maritime Archaic Indians are known to have mined chert beds in Labrador for the material used to make implements beginning about 4000 years ago. Aboriginal mining is also known from the Cobalt area of Ontario. Aboriginals extracted silver from this area from 200 B.C. to 200 A.D.

The actual extent of Aboriginal mining is not known and may never be accurately known. Yet, trade in copper and silver and the use of chert implements were extensive in North America for over 5000 years before European settlement. Mining and the use of some minerals and metals were a part of Aboriginal life.

Explorers, such as the Vikings and early settlers, are known to have developed and exploited mines. The early explorers of the landmass were looking for deposits, especially gold. Knowledge of deposits and of the possibility of exploiting them were important for the administrators of the colony that became Canada.

2.2 Harvest and Move

The next phase of mining in Canada, from the mid-1800s to the mid-1900s, was characterized by what can be described as a harvest and move approach. This phase, from a government perspective, was due to the need to demonstrate sovereignty over the landmass, to acquire more knowledge of the landmass and resources, and to build a nation. For the mining industry, this phase represents the best use of existing technology to exploit the resources and make a profit. Both governmental and industry goals were similar in the need to find and exploit resources to ensure a future for the country.

In September 1841, the Legislature of the Province of Canada passed a resolution to conduct a geological survey of the province. This resolution gave birth to the Geological and Natural History Survey of Canada in 1842. The decision to undertake a geological survey of the country was based on the realization that the development of an industrial economy in Canada would depend to a considerable extent on a viable mining industry. There was a need to do a geological assessment of the landmass and to determine the presence of viable resources.

According to the harvest and move approach, resources were developed as quickly as possible upon their initial discovery and harvested until they were exhausted. This applied to all natural resources, but the following discussion is limited to mining. Once the mineral resources of an area were exhausted, developers and workers moved on to new mineral deposits. Many of the settlements established to accommodate and serve the workers eventually closed down after the m ineral was exhausted and were abandoned.

The most extreme examples of this harvest and move phase were the Cariboo gold rush (1860s) and the Klondike gold rush (1896-98). The Cariboo gold rush brought thousands of people to the western coastal region of Canada while, in the case of the Klondike gold rush, thousands headed north to the Yukon. In both cases, numerous settlements were established to accommodate the gold seekers. Many of these settlements were abandoned shortly after their establishment as the supply of gold disappeared and prospectors extended their search into other areas.

Despite the large number of ghost towns that it created, the harvest and move phase of mining in Canada left important benefits to the economy and social fabric of the nation. M ajor developments occurred with respect to the exploration and settlement of remote areas: wealth was created, knowledge of the country was extended, transportation infrastructure was developed, the role of government was expanded, new technology was developed, and sovereignty was established. The mining industry, through the creation of settlements, helped forge the nation.

2.2.1 Exploration and Settlement

The search for mineral resources led to the exploration and mapping of remote areas of the country. The discovery of mineral resources in turn led to the development of communities and a flow of population to parts of Quebec, Labrador, Ontario, Manitoba, British Columbia, the Yukon and the Northwest Territories.

While a series of communities prospered and then dwindled or disappeared completely due to mineral exploitation or the gold rushes, several permanent communities (such as Nelson, Flin-Flon, Sudbury, Thetford Mines) also developed. All of these communities, those that persisted and those that disappeared, played a significant role in the gradual extension of the frontier and in the settlement of the country, as well as in the economic and social development of Canada.

The Cariboo gold rush was instrumental in the settlement of mainland British Columbia and the westward expansion of settlement, while the Klondike gold rush served to expand the northern frontier. B oth gold rushes resulted in the establishment of communities, many of which were abandoned, but others achieved permanence.

The Cariboo gold rush, and other mining exploration and development, resulted in the opening up of regions that were subsequently discovered to be of agricultural, forestry or ranching value. This in turn stimulated the permanent settlement of areas and a diversification of local economies.

Another important result of both gold rushes and mineral exploration has been the increased geographic knowledge of the country’s land base. Significant parts of the country were mapped as a result of the gold rushes or of mineral exploration. This provided the foundation for subsequent settlement, the development of transportation corridors, and greater access to other natural resources including agricultural lands, forests and fossil fuels. It also led to the establishment of government control over lands and resources.

2.2.2 Transportation Infrastructure

Mineral exploration and the construction of transportation infrastructure are closely related. Some mineral deposits were discovered during the construction of the transcontinental railroads while, in other cases, mineral discoveries led to the construction of further railroad routes. In both cases, mineral discoveries and the construction of railroads led to the establishment of sovereignty and of governmental control over large areas.

The period between 1880 and 1920 was the golden age of railroad construction in Canada. The development of the three transcontinental rail lines – the Pacific Railway (1885), the G rand Trunk Pacific Railway Company (1914) and the Canadian Northern Railway (1915) – is closely tied to the expansion of the mining industry. The Canadian Pacific and Grand Trunk Pacific railways were motivated in large part by the mining activity in Ontario and British Columbia, while the Canadian Northern Railway was an important prerequisite to mineral development in the northern prairies and the Northwest Territories. The building of the railway was a national policy and a condition for the entry of British Columbia into Confederation. Once in place, these rail lines had a profound impact on the movement of goods and people, settlement, and industrial expansion.

The development of canals for the transportation of goods was also stimulated by the mining industry. For example, the first lock of The Great Lakes-St. Lawrence Seaway System was built in Sault Ste. Marie in 1855 in response to the discovery of iron and copper ores around Lake Superior. The Welland Canal, connecting Lake Erie and Lake Ontario, underwent several improvements between 1845 and 1932 that were due in part to the mining industry and were of subsequent importance to the development of the Canadian steel industry.

The gold rushes and mineral exploration also led to the construction of roads. In 1862, the Government of British Columbia commissioned the construction of the Cariboo Road, which was completed three years later and led to the construction of shorter roads to communities. The construction of these roads contributed to the development of a comprehensive transportation system in the province. The use of these roads for the delivery of goods, services and security assisted permanent settlement.

2.2.3 Related Development

The establishment of mines, the existence of transportation networks, and government policy resulted in the development of processing facilities within Canada. In some cases, government policy played an important role. The nickel industry, for example, was legislated into building a refinery in Ontario. In the case of aluminum, it was the granting of water licences by the provinces to give companies like Alcoa and later Alcan access to competitively priced hydro-electric power that lured the industry to Canada.

The development of processing facilities increased the impact of mining, leading to higher employment and greater value for exports. Additionally, once materials were available, industry was able to grow and branch into other areas and activities. Technological advances have also been made in mining, exploration and other related industries, helping secure Canada’s position as a leading global minerals producer.

A good example of industrial evolution is the case of Consolidated Mining and Smelting Company of Canada, which became Cominco Ltd. in 1966. The company was formed in 1906 by an amalgamation of several companies to ensure a secure supply of ore and power to operate the ailing copper smelter in the town of Trail, British Columbia. The smelter expanded dramatically in the 1920s and 1930s and became the largest producer of lead and zinc in the world. A large chemical fertilizer plant was added in the 1930s to eliminate sulphuric acid from the smelter and to improve the environmental conditions in the area. Cominco in Trail and many other companies in Canada have had important impacts on communities by increasing local populations, creating jobs, and diversifying the local economy.

The gold rushes, especially the Klondike gold rush, have been the source of a tourism industry, which has helped communities, such as Dawson City, survive. Furthermore, the gold rushes and other mining activities have often had impacts on communities located far from where the resource was found. For example, the growth of Edmonton, Alberta, as a major supply centre was stimulated by the Klondike gold rush just as, more recently, it was again stimulated by the search for and discovery of diamonds in the Northwest Territories.

2.2.4 Government

Both gold rushes stimulated the expansion of government activities. Motivated by concerns over sovereignty and protection of the fur trade, the Government of British Columbia took an active role in the regulation of activities during the Cariboo gold rush. It sold mining licences, enforced licensing and other laws, and maintained law and order.

The presence of the North West Mounted Police (the precursor to the Royal Canadian Mounted Police) had a considerable effect on the Klondike gold rush. The approach of the Northwest Mounted Police was conducive to settlement and the Mounties were of considerable assistance to those inexperienced in wilderness survival.

The management of the gold rushes led to a stable environment for settlement, while the selling of licences was an important source of government revenues. The revenues led to investments in transportation and infrastructure, which in turn led to more extensive settlement and increased law and order and governmental services.

2.2.5 Aboriginals in British Columbia

Prior to the gold rushes, the Aboriginal peoples of British Columbia and the Yukon had limited contacts with fur traders and explorers. The gold rushes brought thousands of people into these areas and the Aboriginal groups began to feel threatened by the invasion of the gold seekers.

The gold rushes were for many the first contact between Aboriginal peoples and European diseases, which led to countless deaths. Furthermore, many Aboriginal peoples were displaced as a result of mining activity and lost either land or access to resources. Because of this, Aboriginal peoples became more protective of the land and resisted development initiatives, such as the construction of the Cariboo Road. Government authorities, who viewed the Aboriginal population as strategically important to maintaining sovereignty and the fur trade, attempted to maintain peaceful relations. Unfortunately, there were many violent conflicts between Aboriginals and gold seekers.

2.3 Ensuring Regional Economic Development

Both World War 1 and World War II led to an increase in the demand for minerals. They also led federal and provincial governments to look at natural resources development, including mining developments, as a way of stimulating economic growth, regional development, and the creation of local employment.

Government initiatives to use mining development as a source of regional economic development included:

  • the establishment of the federal Department of Mines in 1907;
  • the first federal Mining Act in 1917, which stipulated that ores mined in Ontario be refined in that province instead of in the U nited States;
  • provincial mining legislation;
  • the Emergency Gold Mining Assistance Act of 1948, which extended the life of gold mines and allowed communities dependent on them to adjust to declines in production;
  • the Roads to Resources Program of 1958, which provided funding for the development of transportation corridors in regions where mineral development was constrained due to difficulties in accessibility; and
  • the reorganization of the Department of Mines and Technical Surveys in 1966 to the Department of Energy, Mines and Resources, with a mandate expanded to include economic research of resource markets and the development of policies and plans for resource management.

These initiatives were aimed at improving the socio-economic position of Canadians and communities in remote regions and, in many cases, resulted in the development of single-industry resource-dependent communities. During the 1950s, governments began regulating the development of single-industry communities and encouraging mining companies to settle workers into existing communities instead of creating new ones. In cases where there were no existing communities, governments played an advisory role and encouraged comprehensive community planning. Governments also attempted to encourage economic diversification, especially tourism, and to implement gradual phasing out of the communities that industry was planning to leave. Government intervention was aimed at providing a better quality of life, increasing the chances of long-term community stability, and easing the stress associated with community decline.

2.3.1 Fly-In Mining

Mining companies tended to build a town at the mine site. This type of town, company built, owned and operated, tended to be self-sufficient and then to be abandoned once the ore was extracted and the mine closed. This system, although useful to mining companies, was not useful for purposes of regional development. The fly-in system was devised to increase the economic development of a region by not concentrating all of the economic activity in one temporary town.

In the fly-in mining system, workers remain in communities remote from the mine site and are flown in to the site for shifts of one to eight weeks. Economic activity is distributed over a wider area than was the case when mining towns were established.

The first mine in Canada to use a fly-in system was Asbestos Hill, south of Deception Bay, Ungava, which opened in 1972. The number of fly-in operations increased rapidly in the 1980s, mostly for mines in northern Saskatchewan and the Northwest Territories.

Some of the more important economic reasons for the use of the fly-in system include:

  • lower costs than building a new community, since increased governmental regulations have made the development of new communities expensive;
  • a reduction in communication and transportation costs; and
  • lower costs in implementing mine closure.

There are also social benefits to the fly-in system, including:

  • avoiding some of the problems with resource-dependent communities, such as instability and socio-demographic imbalances;
  • the benefits of the development are spread out over a wider range of communities;
  • workers can maintain a good separation between home and the workplace; and
  • greater flexibility in work schedules, making it possible for Aboriginal workers, for example, to maintain a traditional lifestyle.

Some of the disadvantages of the fly-in approach include:

  • the fact that hardship, when a mine closes, is spread over a wide range of communities;
  • the development of the remote region does not benefit because supplies and workers are brought in from other areas;
  • negative effects on families and family life due to the fact that one partner is away from home for extended periods of time; and
  • negative social impacts can still occur in communities from which outsiders are flown to the mine site.

The fly-in system does contribute to regional development. Since a mining settlement does not exist, goods and services are delivered to a convenient existing settlement, which benefits from increased economic activities. Such settlements become transportation nodes that can offer an increased number and type of services.

2.3.2 Northern Development

Concerns about poor economic conditions, poverty within Aboriginal communities, and Canadian sovereignty were some of the motivating factors behind the strategy to use natural resources to stimulate regional development in the north, particularly in the Northwest Territories. The vast number of mineral deposits found in the N.W.T. and in the northern parts of provinces led to the development of many mines between 1950 and 1990, many of which used a fly-in system.

Mining activity stimulated the construction of roads, railways, hydro-electric facilities and communities. Both the federal government and the mining companies made an effort to involve Aboriginals in the planning and operation of the mines and to accommodate traditional lifestyles through the use of the flyin system and initiatives directed at the development of Aboriginal communities.

Despite efforts on the part of the federal government and the mining companies, Aboriginal peoples felt threatened by mineral development and, in some instances, resisted the opening of mines or the construction of roads. Nonetheless, the importance of mineral resources to the economic development of northern Canada is recognized by Aboriginal peoples. Inuit leaders now expect mineral development to play an important role in the economic and social future of Nunavut.

The drafters of the agreement that created Nunavut insisted upon mineral rights, and the Inuit have regulated that an Inuit Impact and Benefits Agreement must be negotiated before mining development can take place. Such agreements guarantee economic benefits, but can also deal with ways of accommodating traditional lifestyles and preserving family structure.

2.4 Environmental Concerns and Sustainable Development

During the 1960s and early 1970s, the environmental movement in North America targeted industrial and natural resource processes that could be detrimental to the environment. The galvanizing issue for mining industries was the problem of acid deposition, also known as acid rain. The effects of acid rain on the environment and human health led to direct action by provincial and federal governments and a heightened public consciousness of the potential impacts of mining activities on the environment. These environmental concerns also led to the development of federal, provincial and territorial environmental impact assessment processes.

With the recession of the 1990s, environmental concerns, for Canadians, were superseded by economic concerns. At the same time, the concepts of sustainable development and of multi-stakeholder approaches were garnering interest. The Whitehorse Mining Initiative (WMI) of 1994 was one such approach that brought together Aboriginal peoples, the environmental community, labour groups, 10 governments and the mining industry. WMI led to the adoption of a strategic vision for a strong mining industry that contributed to the maintenance of a healthy and diverse ecosystem in Canada.

As sustainable development continues to gain momentum and governments and industry search for methods to implement it, some mining companies have begun to look at the concept of the “triple bottom line,” which goes beyond simply measuring financial results to also include social and environmental impacts. Such concepts lead to difficult questions dealing with the social dimension of sustainable development, the impact of the mining industry on the social fabric of a country, and the methods to increase social sensitivity and to measure social responsibility.

These difficult questions are amplified by the fact that the mining industry exists and develops mines for profit and not as a social good. Yet, share prices are heavily dependent upon qualitative factors. Management culture, responsiveness to societal pressures, reputation, and the presence or absence of environmental accidents all have an impact on share prices. Although contributing to the social dimension of sustainable development results in costs for the industry, it can also be the basis for increased profits.