Boom to Bust: Social and Cultural Impacts of the Mining Cycle [The Pembina Institute]

The mining industry has a long track record of booms and busts. When mineral prices rise, new mines are built in a hurry Host communities beenfit from a jump in jobs, infusions of cash, and investments in infrastructure - the "boom." However, when prices fall, production slows down and some mines close altogether. Communities suddenly find themselves facing unemployment, loss of income and a declining population - the "bust." This cycle can take a heavy toll on communities. When assessing mine proposals, communities need to think critically about how - or whether - they can mitigate negative impacts, and plan accordingly. This primer describes some of the key problems the boom-bust cycle can create - from economic uncertainty to loss of traditional cultures to environmental degradation - and offers recommendations for how communities can best beat the cycle.