33 mines shut down in 1991, net job loss reaches 2,000

Ore depletion, low metal prices and depressed market conditions resulted in the permanent closure or suspension of 33 Canadian mines in 1991, according to the Mineral Policy Sector of Energy, Mines and Resources Canada.

The closures, which occurred in Newfoundland, Quebec, Ontario, Saskatchewan and British Columbia, more than offset last year’s 18 mine openings. In 1990, there were 26 closures and 24 openings.

“While new and re-opened Canadian mines added over 13,000 tonnes of daily production capacity and 1,300 jobs in 1991, mine suspensions and closures reduced Canadian ore production capacity by 58,000 tonnes per day and eliminated some 3,300 jobs,” says EMR economist Lo-Sun Jen.

Preliminary estimates for 1991 indicate total employment in the mineral industry was about 330,000, down 12.7% from 378,000 in 1990. “Most closures in 1991 appear to have resulted from economic problems caused by depressed metal prices and market conditions. This was especially so in the case of gold mines.”

Of the 33 ill-fated operations, 14 were gold mines. The list also includes eight base metal, three copper-gold, one silver-lead-zinc, one uranium, two asbestos, three sodium sulphate and one natural graphite operation. New and re-opened mines include the Westray coal mine in Nova Scotia, the Lower Coleman nickel-copper mine in Ontario, the Snip and SB gold mines in British Columbia and the Sa Dena Hes zinc-lead-silver mine in the Yukon. According to Jen, the mining industry is facing another year of retrenchment in 1992. Preliminary estimates suggest that only three new mines will open this year while at least two dozen will close.