From the beginning of the Gold Rush until the mid-1900s, much of the country’s economy was sustained by mining. Of course one of the many important minerals mined is gold.
But not every day is rosy for the gold mining industry. There are many situations that challenge the profitability and even survival of mines. One of the events that led to the closure of most gold mines was World War II. Let’s look at the reasons for this and its adverse impact on the precious metals mining industry.
“Unnecessary” metals
With the outbreak of World War II as it reached its peak in 1942, several gold mines were completely closed. One of the reasons why gold mines were closed included the fact that these mines were considered ‘non-essential’ because they did not produce minerals used for war.
Therefore, the government focuses on the production of other metals such as copper, iron, etc. to promote the production of war equipment. These are “essential metals”, important for the production of ships, tanks, aircraft and ammunition.
Much labor was needed for the war effort
The government also closed gold mines to reduce the workforce in the mines, and later increased the workforce needed at mines involved in the production of metals deemed essential to the war effort.
Gold mines were also required to cease operations in order to increase human resources in the military, as many people were forced to join the army after losing their jobs in the mines.
Other reasons for closing the mines over a number of years included the government wanting the gold mines to diversify production to maximize the amount of minerals needed in the production of weapons for the war effort. As a result, gold and silver end up becoming byproducts of the essential minerals needed.
Reusing mining equipment
Closing the mines was also necessary for the government to increase equipment capacity to produce equipment deemed suitable for war-related projects. The government therefore controlled the purchase and acquisition of mining equipment, by restricting it to mines that produced what they were looking to support the war effort.
Gold mines were shut down as the government increased incentives for miners to work in pro-war mines to discourage people from working in gold mines. As a result, there are very few workers left in the gold mines.
Negative impact on the industry
Because most gold mines closed, there were negative impacts in many places across the United States. One of the impacts is job loss throughout the community. Especially in the Western United States, there were many towns that existed solely to serve the men who worked in the mines. Without mines, many of them have withered.
The closure of some mines has also led to low productivity in the mines as resources to boost production such as mining machinery are limited.
The closed mines quickly fell into disrepair
After the mines ceased operations, most of them collapsed and were flooded leading to a general situation. Most mines – especially larger and deeper gold mines – require constant maintenance. Pumping is required to prevent water from entering the tunnel. If not maintained, they will quickly flood.
Furthermore, the maintenance of gold mines that remain operational becomes costly because of the minimal profits obtained from the minerals. Therefore, most of the mines’ infrastructure could no longer be used.
Reopening the mine is a challenge. Because some business owners lost all capital after the Executive Order took effect. Restoring mines that have been abandoned for many years is a big challenge.
On top of that, many people who were forced to join the army did not make it to the end of the war because thousands of people were killed. As if that were not enough, some people who died in the war left their families in despair, especially those who were considered breadwinners in the family.
Most mines have been permanently abandoned
Many other impacts included the permanent closure of some mines, as many could not reopen even after the war. Although the war only lasted a few short years, those years caused heavy damage to the mines.
Flooding and collapsing tunnels are the main problem, but much of the equipment at the mine has also been salvaged, reused or scrapped for steel. Rebuilding an abandoned mine is a huge undertaking, and it’s simply not a profitable business for many mines.
In short, gold and silver mining suffered major losses among all the mines that existed as World War II loomed. Besides the closure of mines, many lives of workers working in war support areas were lost as a large number of them joined the army.
Experts will still debate the decision to close non-essential mines. This decision certainly helped increase production of copper, iron and other important metals. However, the consequences of this decision have had a major impact on the mining industry. In many ways, it has never recovered. The gold and silver mining industry changed forever after the war.
