The History of Mining in Cape Breton

Ownership - The Colonial Period (1784-1820)

     When the English had taken final control of the island of Cape Breton, a greater attention was focused on the working of the mines on a commercial basis. Cape Breton was given separate colonial status from that of Nova Scotia in 1784, and the first Lieutenant-Governor, J.F.W. DesBarres, was already well acquainted with the mineral resources of the island and felt that the mines would be "an inexhaustable source of revenue" for the new colony.

     An order forbidding the granting of land in Cape Breton, issued in 1763, was removed in 1784. The mineral rights to the island were given over to the Crown by an order-in-council. The British government had intended that the Crown take over the operation of the mines when Cape Breton was made a colony, but this was never done, probably because of the rehabilitation cost of the mines. The mines were in a neglected state, caused by careless operations dating back at least to the time of the final fall of Louisbourg.

     DesBarres ran the mines for his own profit, leasing the mines to Thomas Moxley. His successor, William Macarmick (1787), followed this trend. In 1791, however, Whitehall saw a need for more efficiency than the Moxley concern. This realization may have stemmed from the interest of John Wentworth, Lieutenant-Governor of Nova Scotia, who suggested that a competent engineer be sent to Sydney to inspect the mines. In May 1792, Macarmick transferred the mining lease to Messrs. Jonathan Tremain and Richard Stout, who were to operate the mines for seven years, with new coal sales actively pursued and the mines not closed for more than 30 consecutive days.

     In 1792, James Miller, a mineralogist, found that the mines had been improperly mined, and that Cape Breton coal was twice the cost of British coal. He recommended that the colony's coal be marketed in the United States. However, British policy prohibited trade with America, so coal sales were limited to nearby English colonies. In 1795, James Miller was sent to Sydney to supervise the entire mining operation. Miller concluded that the leasees, Messrs. Tremain and Stout, were "totally unintelligent in coal works" and consequently asked the government to take over the operation of the mines. Government control would hopefully lead to increased production, a stabilized workforce and a reduction in wages and prices. While Miller blamed Tremain and Stout for the poor condition of the mining operation, the two leasees blamed their difficulties on the thriving practice of smuggling. Miller's answer to this problem was that British ports should forbid the purchase of Cape Breton coal from anyone not in possession of a permit signed by the Lieutenant-Governor of Cape Breton. The home government agreed and the smuggling ceased.

     The Cape Breton coal trade was not only hampered by high transportation costs and smuggling, but also by the threat of development of coal deposits on the Nova Scotia peninsula. Miller travelled to Halifax in 1797 and was able to dissuade Lieutenant-Governor Wentworth from carrying out his project in the Pictou area.

     By 1796, Tremain and Stout had two pits in operation and Miller thought that both would be exhausted by the summer of 1797. So, with Macarmick's approval he began a new level in 1796. In 1799, General James Murray arrived to take over the government of the colony of Cape Breton and immediately turned his attention to the problems of the mines. He recognized a potentially profitable market for Cape Breton coal which existed in the United States: however, he was not able to have the trade restrictions lifted to permit shipments to the U.S. He allowed Miller to continue with the new level but, fearing that the leasees could not be trusted due to their dangerous methods and speedy extraction of the coal, he concluded that the government should take over the mines.

     Just as a new lease with Tremain and Stout was about to be signed, Miller died, leaving the colony without a qualified mine superintendent. In his place Murray appointed Solicitor-General William Campbell. With qualified people in charge, Murray decided the Crown could run the mines more profitably, and so the lease was not renewed.

     In 1800, Murray was recalled to England and replaced by General John Despard who was suspicious of Murray's involvement in the mines. An inquiry and investigation into the whole operation was ordered. Unfortunately, William Campbell, the mine manager, was appointed to conduct the study. He was interested in running the mines for his own gain and so set out to convince Despard of the evils of government operation of them. Campbell asserted that, "coal duties would be more certain and far more considerable than any profit that can be derived from working (the mines) for the Crown."

     As a result, an advertisement was soon seen in the Nova Scotia Royal Gazette, informing local businessmen of the opportunity of gaining a lease to run the Cape Breton mines for a seven (7) year term to start November 1801. No replies were forthcoming and in spite of increased production under government ownership, Despard soon leased the mines to an eager Campbell. The operations were a fiasco and production dropped. With the ensuing shortage at Halifax, Wentworth soon revived his interest in the Pictou field, claiming Cape Breton's coal supplies were clearly inadequate for Nova Scotia's growing demands. Despard learned his lesson and in February 1804 the Crown regained control of the mines and John Ritchie, a Halifax merchant, was chosen as mines superintendent. Productivity increased once again and this success kept Wentworth from opening the Nova Scotia coal field. The first decade of the 19th century saw a growth in the city of Halifax and Despard's successor, General Evan Nepean (1808), wondered how he could increase productivity in the mines without sufficient labour. Soon, thirty of the newly-stationed New Brunswick Fencibles were put to work in the mines, but the increase did not satisfy the demand. George Prevost, the Lieutenant-Governor of Nova Scotia, tried again, unsuccessfully, to have the Pictou mines opened.

     In 1811, the Fencibles were ordered to stop working the mines, so Nepean was forced to lease the operations to Jonathan and John Tremain of Halifax. This lease was soon surrendered and passed to Messrs. Ritchie and Leaver who held it until 1818. Now, after pressure from both the Legislative Council and the Assembly of Nova Scotia concerning the insufficient coal production in Cape Breton, Britain, in 1815, finally agreed to the opening of the Nova Scotia mines.

     In order to keep coal shipments from Cape Breton at a respectable level, Lieutenant-Governor Ainslie, in 1818, granted 135 individual coal permits for locations other than Sydney Harbour. This, however, increased the opportunity for coal smuggling. To prevent this illicit trade, Ainslie adopted the old policy of requiring signed shipping permits which had to be presented at Halifax before coal could be accepted for sale. This proved successful.

     In 1818, Ritchie and Leaver transferred their lease to Messrs. G.W. Brown and J. Leaver, who held it until the lease expired in December 1820. It was expected that the colony of Cape Breton would soon be re-annexed to the government of Nova Scotia. Leases were now granted for periods of one year. John Brown, a local merchant was able to hold the lease for two consecutive years.

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