THAT WAS THEN, THIS IS NOW: GLOBALISATION IN THE KLONDIKE GOLD RUSH
OF 1898 AND THE RECENT 2009-2012 YUKON MINERAL EXPLORATION RUSH
By
SUZANNE ROY
Integrated Studies Project
Submitted to Dr. Carolyn Redl
In partial fulfillment of the requirements for the degree of
Master of Arts – Integrated Studies
Athabasca, Alberta
March, 2013
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Abstract
A comparative analysis of the economic and social situations of Yukon Territory between the Klondike
Gold Rush of 1898 and the recent mineral exploration rush of 2009-2012 uncovers how Yukon has changed over
the past 110 years as globalisation evolved. Economic factors, such as the value of the dollar, price of gold and
mining’s contribution to Yukon’s economy, show that globalisation has affected basic economics in the Territory.
An industrial economy of large scale based on speculation and foreign investment has developed. A side effect of
this is a change in the nature of Yukon gold rushes. These rushes have morphed from placer mining rushes to hard
rock exploration rushes. Government activity in promoting and regulating Yukon’s mining economy and regulation
of it shows that, in order to remain competitive in a global environment, legislators now have to provide incentives
for companies to set-up operations. Socially, globalization has drawn foreigners to Yukon. It has also produced a
stratified society and has helped create an expensive environment in which to live. The evolution of crime in the
Territory shows how the nature of crime has changed between the rushes. Globalisation’s impacts on First Nations
and women demonstrate that although progress has been made for both groups, there are still challenges to
overcome. Lastly, the effect of globalised social movements shows how environmental responsibility in the
minerals industry has grown in significance.
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Table of Contents
Page
1. Introduction
3
2. Methodology
3
3. Globalisation Defined
4
4. Capitalism’s Influence on Globalisation
5
5. Simulation
5
6. Globalisation’s Roots
6
7. Technological Impact on Globalisation
6
8. Benefits and Detriments of Globalisation
7
9. Circumpolar North and Globalisation
8
10. Driving Forces of the Klondike Gold Rush and Recent Mineral Exploration Rush
9
11. Mining Techniques, Innovations and Finance
11
12. Economic Effects of Globalisation on Yukon Between the Rushes
12.1 Price of Gold and Contribution of Gold Mining to Yukon Economy
12.2 Rise of Industrial Economy
12.3 Mining and Investment
12.4 Changes in Legislation, Regulation and Funding
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13
14
15
16
13. Social Effects of Globalisation on Yukon Between the Rushes
13.1 Demographics and Dawson Life
13.2 Crime and Prostitution
13.3 First Nations
13.4 Women
13.5 Environment
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18
22
24
26
29
14. Conclusions
31
Works Cited
34
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1. Introduction
Yukon Territory is a mountainous area in the northwest corner of Canada that is nearly the size of Spain.
The territory has a rich mining history, beginning with small-scale First Nations operations. (Laberge and Nordling
1). This history continues through various “boom-bust” cycles that have shaped it both economically and socially
(Deloitte 3). Allen (11) states that the discovery of gold at Rabbit Creek, (later re-named Bonanza), August 17,
1896, sparked the Klondike Gold Rush of 1898-1900 and the beginning of industrial mining in the territory. This
was the last true great gold rush, an event that occurred in an era of worldwide economic desperation caused in
part by the market crash of 1893 (Huskey 62). Nearly 100,000 gold seekers from all walks of life and backgrounds
set out for the Klondike; roughly 40,000 made it, of those 4,000 actually mined, and 300-400 people became what
once could consider “rich.” Southcott has stated that, “[t]he Yukon and Alaska gold rushes at the end of the
nineteenth century showed the world for the first time the region’s potential mineral wealth” (44). It was an event
that changed the north irreversibly.
Currently, the mining sector is the main driver of northern Canada’s economic activity (SCNR 8). The
international demand for minerals, energy, metals, petrochemicals and diamonds is providing promising
opportunities for northern Canada’s natural resource sector (1). Seventy miles from the Klondike gold fields of
1898, a mineral exploration rush was sparked in the White Gold district just over 110 years later, in 2009. Again
the rush occurred in a time of economic crisis, this time in response to the stock market meltdown of 2008. As
st
Little has stated that “at the beginning of the 21 century global resource industries are the main agents of change
in the North,” (1) this affords a rare opportunity for comparison between two similar situations in close proximity,
separated by just over a century, to study the effects of globalization.
2. Methodology
The bulk of my study was developed largely by examining historical records, texts and statistics and
comparing them to contemporary ones. Text and web-based research were the primary methods; however,
archival research was also a component. As many sources pertaining to the Klondike Gold Rush do not lend
themselves well to quantitative analysis due to incompleteness and a larger legacy of anecdotal evidence, (such as
diaries and memoirs), qualitative analysis was used relying partly on critical discourse analysis. Critical Discourse
Analysis (CDA), a method for deciphering relationships between language and the social institutions it operates in,
is concerned with the study of discourse and has the ability to shed insights into the cultures and social structures
it relates to. Language does not merely name or identify, but embedded within it are distinct social and cultural
meanings. Tuen van Dijk’s theories on CDA are useful when examining race, ethnicity and gender discrimination in
post-colonial studies, such as those that are found during the Klondike era and in modern times. Although his
work focuses mostly on interviewing, his techniques can be applied to written accounts of the Gold Rush Era to
uncover certain social practices, attitudes and structures of the era. His theories can also be applied to modern
accounts to determine changes. Van Dijk advocates that CDA should be diverse and multidisciplinary, drawing
from as many sources as possible (95). CDA not only focuses on the linguistic relationships within societies but "[i]t
focuses on problems, especially on the role of discourse in the production and reproduction of power abuse or
domination" (96) from the side of those being abused. As such, CDA is often attacked for its attacking, which are
all part of the attempts to marginalize and problematize dissent. Van Dijk’s theories are especially beneficial for
this study as they can help uncover the hidden meanings behind first hand accounts of the Klondike Gold Rush in
order to decipher the true attitudes towards First Nations, women, and the environment and can help uncover
modern attitudes to determine globalisation’s multi-faceted effect.
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Theories of globalisation provide grounding for this study. Steger notes that “[m]arket globalization is
without question the dominant ideology of our time” (101) and has been responsible for a number of economic
and social changes. This paper, through a comparative analysis of the Klondike Gold Rush and the recent Yukon
mineral exploration rush, will demonstrate how globalisation has affected the economic and social climate in
Yukon Territory. This will be done by defining globalisation, identifying its evolution, and outlining its positive and
negative benefits. The circumpolar north as a region and globalisation’s effects on it will then be presented in
order to contextualize the location of Yukon. Drivers of both rushes will be compared, specifically the
psychological ones of fear and hope in response to international economic turmoil and the appeal of gold as a
solution. Economic factors, such as the value of the dollar, price of gold and mining’s contribution to Yukon’s
economy, will show that globalisation has affected basic economics as an industrial economy of large scale based
on speculation and foreign investment has moved into the Territory. A side effect of this is a change in the nature
of Yukon gold rushes. The placer mining rush has morphed into a hard rock exploration rush. Government activity
in promoting and regulating Yukon’s mining economy will be compared to show that, in order to remain
competitive in a global environment, legislators now have to provide incentives for companies to operate in their
territories. Socially, in Yukon, globalization has drawn foreigners to her land. It has also produced a stratified
society and has helped create an expensive environment in which to live. The evolution of crime in the Territory
will also be presented to show how the nature of crime has changed between the rushes. Globalisation’s impacts,
both positive and negative, on First Nations and women will also be put forth to demonstrate that although
progress has been made for both groups, there are still challenges to overcome. Lastly, the effect of globalised
social movements demonstrate how environmental responsibility has grown in importance between the two
rushes.
3. Globalisation Defined
In order to understand these changes, globalisation itself must first be examined. Hoogvelt states that
“[g]lobalization is the intensification of human interaction at all levels – financial, social, and cultural” (Collier).
Kiely (2) mentions that globalisation is a buzzword that has emerged in the social sciences and in political and
public discourses of global affairs starting in the 1990s and that there is lack of clarity over its meaning. Scholte
continues with “some people have associated globalisation with progress, prosperity and peace. For others,
however, the word has conjured up deprivation, disaster and doom. No one is indifferent. Most are confused”
(14). Robinson (126) agrees that there is no hard and fast definition. Adding to the confusion is the fact that the
majority of research on the subject has come from the global north. It is in English, conducted by urban-based,
white, professional, Judaeo-Christian, middle-aged men (Scholte 15). Many theorists, at its most basic level,
consider globalisation to be “society without borders or special boundaries” (Waters 1). Kiely considers
globalisation to be an increased interconnectedness of the world, an increase in the velocity and intensity of these
interconnections, and an increase in the “flows (people, capital, goods), networks (information, production),
institutions (UN, WTO, etc.), and challenges (environmental, terrorism, poverty) that…transcend territory,
particularly the nation-state” (78). Scholte (74) believes it has manifested itself in our communications, travel,
production, markets, money, finance, organizations, military, ecology, health, law, and consciousness. Heininen
and Southcott define the term as a “phenomena and systems that are truly worldwide in scale” (5). Along with
Steger (36), they propose five dimensions: economic, political, cultural, ecological, and ideological. MacGillivray (4)
categorises the various definitions of globalisation in two camps: tight economic and broad social which are the
two categories that this study is concerned with.
Within globalisation, Waters (23) suggests that there is an international division of labour that can be
further broken down into two parts, social and technical. These create core and peripheral societies which split
the world into developed and non-developed societies, or modern vs. traditional, industrial vs. industrializing, First
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vs. Third World, and rich vs. poor. This split is witnessed in Yukon when comparing quality of life in the
Communities with that of the capital, Whitehorse. Both types of societies, along with semi-peripheral areas are
actors in the world economy (19). This international economy is based on industrialisation and market dominance
(29). One does not have to look very far for proof of its existence. The international consequences of the 1997
Asian (15) and 2008 United States meltdowns prove that the economy is intricately linked and globalised.
4. Capitalism’s Influence on Globalisation
Many, including Scholte (23), consider globalisation to be a form of “late capitalism”. Capitalism is the
expansion of production for the market (Kiely 27) and consists of two major processes, the logic of production and
the logic of consumption (Waters 7). Kiely remarks that these processes represent a “form of quantitative
progress, in which there is a gradual development away from production for use, and towards production for
exchange. At a certain point this develops to such a degree that market competition comes to dominate economic
behaviour” (27). Once a given market is dominated, capitalism reaches to other markets in a quest to continually
expand.
Political theorists such as Deleuse and Guattari provide a modern look at capitalism and its impact on
globalisation. They state that “[c]apitalism forms when the flow of unqualified wealth encounters the flow of
unqualified labour and conjugates with it” (453). As global capital has spread, there has been a decrease in
national sovereignties and in their place is a “war machine [that] has taken charge of the aim, worldwide order,
and the States are now no more than objects or means adapted to the machine” (421). Deleuse & Guattari (454)
refer to global capitalism as a new threshold of deterritorialization consisting of turning materialized labour into a
commodity. The subjugation of the world market to capitalism is even felt in the so-called socialist states (455).
Capitalist economic systems supersede national interests by creating a multinational economy that is untouched
by individual government decisions (453). This economy jettisons the basic tenet of democracy; that of the ability
of governments to make sovereign decisions based on the best-interests of their citizens (Ellwood 68). Economic
liberalization and neo-liberal reforms have changed geographies of investment and given capitalism the space
required to create globalisation (Bridge 406). Scholte states that these “alliances have allowed companies to pool
resources; achieve economies of scale; share risk; and shape markets to their joint advantage” (179). Many of
these alliances come in the form of multi-national enterprises whose critics deem them to be vehicles of
exploitation and inhumane practices whereas their friends consider them to be virtuous sources of investment,
technological transfer and upgrading of labour (Waters 24). These enterprises use geography to their advantage,
setting up where resources are available, labour is cheap, environmental laws are lax and tax rates are the lowest
(Scholte 179). This creates a trans-national class which, through networks of big companies and international
organisations, are managing an international division of labour that is allowing the Bourgeoisie to maintain their
rank in the core societies by exporting poverty to the peripheries (Waters 28). Poverty does not even have to be
exported to the peripheries as it is evident where multinationals conduct business, in Yukon by taking out
resources and, compared to profits, paying a miniscule royalty. The territory’s finite resources are depleted
without adequate compensation for her citizens.
5. Simulation
Waters proposes that there are three types of exchange contained in globalisation; material, political and
symbolic. He states that “[m]aterial exchanges localize; political exchanges internationalize; and symbolic
exchanges globalize” (11). These exchanges, in particular the symbolic exchanges, are serving to create a false
reality based on simulation. Jean Baudrillard presents numerous works in reference to simulation. He states that
“[s]imulation is no longer that of a territory, a referential being, or a substance. It is the generation by models of a
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real world without origin or reality: a hyperreal” (1) and that “present-day simulators attempt to make the real, all
of the real, coincide with their models of simulation” (2). Capital has been instrumental in establishing this
simulation as it has been the first to feed “on the destructuation of every referential, of every human
objective…[and]…shattered every ideal distinction between true and false, good and evil, in order to establish a
radical law of equivalence and exchange…”(22). This hyper real has created a hyper market leading to a consumer
culture which is fed by advertising that has absorbed all modes of expression (87). The end result of all the
simulation is a fictitious economy no longer based on tangible assets but mere speculation that can be
manipulated in varying degrees to achieve desired results.
The modern Yukon mining industry is a good example of a new fictitious economy. Based on resource
speculations, industry players look for outside investment in order to further develop mining plays. The
investments often come in the form of traded stocks on an open market which have little to no tangible financial
backing in and of themselves. These stocks are traded at light-speed- rarely does the owner ever hold a certificate
or see any evidence of it other than a number being bought and sold in portfolio reports on computer screens.
The experience of modern mining is, in some respects, akin to a simulated financial video game.
6. Globalisation’s Roots
The globalisation affecting the resource industry in Yukon has its roots in early-modern Europe. Ellwood
(13) states that Columbus laid the groundwork for today’s global economy via 450 years of colonialism and
imperialism. During the years 1870-1914, the era of the Klondike Gold Rush, another set of groundwork was laid
for the development of the current era of globalisation. During that period, the planet was physically being linked
together via transportation and communication networks, there was a rapid growth in trade between nationstates, and there was a huge flow of capital by direct investment in non-industrialized areas (Waters 14). Today’s
era of globalisation is generally thought to have started in the early 1970s (Kiely 3), and fed by the capitalist
restructuring of the 1980s and 90s which included the liberalization of finance, the increasing importance of
shareholder value, the creation of equity markets as a new source of capital, and corporate re-organisations,
downsizing, and outsourcing.
7. Technological Impact on Globalisation
Globalisation has always been based on technology. Marsden notes that “[m]ap and globe makers were
the information technologists of their day.” The use of technology serves to compress time and space. This
compression is a prerequisite for globalisation as it allows for stable organisation of human activity across vast
temporal and spatial distances (Waters 2). Kiely (84) states that the invention of the telegraph and the growth of
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the railways in the 19 century had shrinking effects that were prominent around the world. By the 1960s,
computers were starting to make strides in commercial applications. Moore’s Law of 1965 predicted that
computing power would double around every 18 months (Gleick 77). This has turned out to be the case which has
exponentially increased compression. At the beginning of the 1990s, the collapse of communism and the creation
of information technology accelerated the capacity of capital to globalise (Webster et al. 191) as spatial and
political barriers were further reduced. Steger notes that “[t]he Internet, in particular, has assumed a pivotal
function in facilitating globalisation through the creation of the World Wide Web that connects billions of
individuals, civil society associations, and governments” (17). Scholte continues this line of thought as “[h]undreds
of millions of people now experience direct and often instantaneous written, auditory and/or visual contact with
previously distant others several times per day” (118). Bauman (13) mentions that space and spatial markers no
longer matter with the compression of time, opening up new markets for business owners and opportunities for
investors from overseas. “Space [has] stopped being an obstacle – one needs just a split second to conquer it”
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(77). Compression due to the advent of new technologies has also impacted financial markets and opened the
door to flexible accumulation (Agnew 139) which has accelerated globalisation. Exploration technologies in Yukon
are also affected by increases in technology accelerating speed and compressing space. Although globalisation is
not new, it has certainly taken on a new dimension.
8. Benefits and Detriments of Globalisation
Is globalisation beneficial or detrimental? The short answer is dependent on subjectivity. Waters (2)
states that much of globalisation is intended, but much has grown beyond intent. Starting with the benefits, Kiely
(13) notes that everyone can win with globalisation provided the proper policies are adopted by the governing
authorities. These policies can increase integration in the world economy and help regions specialize to take
advantage of the goods and services it can provide most efficiently, (their comparative advantage), resulting in
being able to exchange surpluses with other countries. Globalisation can also help regions create their own
identity. Such an example is provided by Heininen and Southcott (14) with the emergence of a pan-arctic identity.
The arctic is also a region that has “benefitted from a shift toward democracy and human rights, an increased
emphasis on the rule of law , and a growing number of multilateral environmental initiatives” (11) that have come
with globalisation. As joint ventures are a common occurrence within globalisation, capacity building through the
transfer of capital, skills, managerial efficiency and technology benefit both parties involved (Bridge 50). Warhust
and Bridge (2) mention that these joint ventures also increase efficiency and environmental performance on a
regular basis. When looking at the mining industry, globalisation has brought about the benefits of technological
change, productions efficiency and increased environmental performance through innovations in pollution
prevention, process control, hydrometallurgy, and remediation and re-uses (3-10).
Although there may be benefits to globalisation, there is also a shadow side. As globalisation entails
multi-national enterprises and world financial markets, the importance of the nation-state is diminished (Kiely 5).
International trade agreements and treaties trump the sovereign decision making abilities of individual states. This
results in a loss of autonomy at a time when some states have just gained independence and sovereign statehood
from under colonial and communist rule (4). This loss of sovereignty is also eroding the sense of community
around the world. Little (36) explains that the global industrial economy focuses on individual success and selfreliance as opposed to communal interdependence and the family economic unit. Further affecting the sense of
community is the entrance of large multi-national corporations who have no local interests other than making a
profit. Bauman likens their presence to that of an absentee landlord who acts out of self-interest and has no
commitment to the quality of life of the community they are operating in. “The company is free to move, but the
consequences of the move are bound to stay. Whoever is free to run away from the locality, is free to run away
from the consequences” (9). Such consequences include socio-economic effects. Kiely (21) demonstrates that the
mobility of capital facilitates the super-exploitation of workers leading to a race to the bottom. According to Little,
“[g]lobal industries are extremely resourceful and wily in their tactics to secure access to resources, particularly in
the absence of any social, cultural, or environmental responsibility” (62) which often results in a swath of socioeconomic destruction left in their wake prompting Kiely (17) to consider globalisation to be a zero-sum game.
Steger (11) notes that the whole process of globalisation is uneven. The playing field favours those established
powers and nations that are in close proximity to market leaders (Kiely 19). Free trade increases these imbalances
and intensifies the uneven development and undermines prospects for sustained capital accumulation and
development in poorer areas (19). This results in marginalization, which can be seen by looking at the increase in
the gap between rich and poor as globalisation intensifies. In 1800, the gap was 2:1. In 1945, it was 20:1, and in
1975, 40:1. By 1990, the gap widened to 64:1 (Waters 23). This disparity is causing great insecurity leading to a
sense of helplessness, fear, depression, and anger in affected populations manifesting in self destructive
behaviours such as suicide, substance abuse, domestic violence, mental illness and general poor health (Webster2;
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Heininen and Southcott 12). Ellwood effectively notes that “[g]aps between rich and poor are widening, decision
making is concentrated in fewer and fewer hands, local cultures are wiped out, biological diversity is destroyed,
regional tensions are increasing and the environment is nearing the point of collapse” (10-11).
Another consequence of globalisation has come with the creation of a consumer society. Bauman
explains that the mass production and consumption base of globalisation has manufactured a society in which
citizens are raised with a sense of “duty to play the role of consumer” (80). The result wipes out all former fixed
signposts of reference and is a beast that must be continually fed in order for the globalised economy to remain
healthy (84). Webster et al. (37) state that trade liberalisation inherent in globalisation has created mega-factories
in numerous locales in order to keep up with the demand for goods. One such locale is China. Glyn (94) notes the
importance of China by stating that the evolution of the world trade structure will be heavily influenced by her.
Since 1990, the growth of China’s exports is greater than the next nine exporters combined (90). China needs to
import the majority of the raw materials required to create their exports. This has resulted in China importing 12%
of the world’s iron and steel supply, and 5% of the remaining mining products in 2006 in order to meet the rest of
the world’s demands for finished products (96). To secure these raw materials, the Chinese are entering into joint
agreements and partnerships with foreign mining companies. Two notable examples are in Yukon. The Wolverine
Zinc-Silver mine owned by Yukon Zinc has partnered with Jinduicheng Molybdenum Group Ltd and Selwyn
Resources (currently in exploration/development mode) has partnered with Selwyn Chihong Mining Ltd., closing a
$100M joint venture agreement in 2010 (Lewis and Burke 19). This agreement evolved into a full-scale sale of
holdings by Selwyn Resources to Chihong Mining Canada March 5, 2013 (Tobin). Globalisation is the root cause of
foreign investment in the resource sector and in light of the potential Canada-China Foreign Investment Promotion
and Protection Agreement being pushed by the Harper Government, (Tremonti) this investment is only bound to
increase.
9. Circumpolar North and Globalisation
To fully appreciate what is occurring in Yukon, and the changes that have occurred between the Klondike
Gold Rush and the recent mineral exploration rush, the distinctiveness of the circumpolar north must be
presented. McBeath (94) explains that this region has long been dependent on transfer payments from federal
governments in order to sustain itself. These transfers have been part of the local economy, one which is mixed
traditional and local market based (Huskey 66). There is also an international economy that has a presence in the
region which controls how much and what is produced for export (57). Heininen (295) states that the circumpolar
north is taking on new military significance and is a resource rich area in which capital is taking an increasing
interest. The natural resources of the region and the ability to get these resources to market have become its
competitive advantage and the basis of its entry into the international economy (Southcott 43). It should be
clarified that the international economy and globalisation are not new concepts in the circumpolar north, either.
Southcott notes that “[t]he North has long been involved in the world outside the circumpolar region, and contact
with these other regions has always existed. What had changed is the nature of this contact” (51). It has gone
from traditional hunter-gatherer to preindustrial colonial fur harvesting, to industrial resource exploitation to fullout globalisation (25-26). The world outside the region has long had aspirations to control its destiny and “[t]he
narrow economic base of most arctic communities has made them vulnerable to actions on the part of outsiders
who may not understand the impacts of their actions on northern communities” (Heininen and Southcott 7).
Many view the circumpolar north as an area “to be exploited for the benefit of the nation” (2). As this exploitation
is driven by resource markets, the boom-bust cycle of those markets intensely affects the circumpolar regions (7),
creating instability and economic hardships.
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It must not be forgotten that globalisation in the circumpolar north is not a one way street. Conscious
decisions have been made to import goods and services from the outside, as well. Cronen (37) states that the
most basic human choices about living in particular places are the decisions to live off the land or import from
outside. Leonard (101) and Haskell (479-489) both refer to the ramifications of the mass influx of people during
the Klondike Gold Rush resulting in mass starvation over the winter of 1897 and nearly again in 1898 due to a scare
food supply. The connections to outside help establish integration between urban-industrial economies in regions
that were formerly on the periphery with major urban-industrial centres (Cronen 39). One of the most obvious
connections is the development of railways built throughout the region to connect to the south (Southcott 44).
For the Klondike Gold Rush, the White Pass &Yukon Route was instrumental in opening up the region by 1901. It is
important to note that it is not only consumer goods that are being imported into the circumpolar regions. As the
world has globalised, it has industrialised. Pierre Berton, Farley Mowat and Mr. Justice Thomas Berger have all
brought to the attention of southerners the effects of industrialisation in the North. Of particular significance was
Justice Berger’s Northern Frontier, Northern Homeland: The Report of the Mackenzie Valley Pipeline Inquiry in 1977
detailing the impact of the pipeline on the environment, the economy, and the people who lived in its path (Berger
viii). This inquiry truly opened eyes towards the destructive potential of industrialisation and, in turn, globalisation
to Canada’s north. Although Berton and Mowat had been mentioning effects since the 1950s, they were
considered more pop-culture icons than credible officials. Justice Berger, on the other hand, was commissioned by
the Federal Government resulting in more exposure and credibility causing a greater number of people to take
note.
As industrialisation has occurred not only in the north but on a global scale, it has increased overall
carbon emissions. The arctic acts as a sink that collects airborne particulates. As such, the effects of carbon
emissions on climate change are magnified in the circumpolar north. Grant states that:
Effects of climate change have been experienced in varying degrees throughout the world but nowhere so
dramatically as in the Arctic. Here, the permanently frozen ice cover is rapidly shrinking, pack ice is fast
disappearing, large blocks of the ice shelf are breaking off and huge glaciers are melting faster than
scientists had predicted only a few years ago. Of increasing concern is the amount of methane, twentyfive times more potent than carbon dioxide, which is being released into the atmosphere as a result of
melting permafrost (406-407).
It would be remiss not to mention that these changes are affecting the livelihood of numerous species
and what remains of the traditional ways of life of arctic peoples. Grant notes, for example, that these effects
have forced the Yu’piq Eskimos on Alaska’s west coast to relocate (409). Changes create continuing instability,
confusion, and hardship in an already fragile area.
10. Driving Forces of the Klondike Gold Rush and Recent Mineral Exploration Rush
Changing conditions between the Klondike Gold Rush and the recent mineral exploration rush surface in
comparing their driving forces. Most basic of these is the psychological drives of hope and fear in response to
worldwide economic downturns. 1898 was driven by several factors, none the least significant a worldwide
th
depression after the market crash of 1893. Huskey states that “Klondike gold discovery in the late 19 century and
the expansion of Alaska mining that followed came in a period of general depression, which reduced both costs
and increased the real value of gold” (62). Many stampeders were un or under-employed and viewed the Klondike
as an opportunity to escape this predicament. Morse notes that “the world’s shared dreams of success, wealth
and liberation through gold” (7) motivated the 100,000 people who set out for the Klondike. In his work The Gold
Fields of the Klondike, Leonard states that gold was a means to guard old age from poverty. He presents that
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“[n]one of these [means] is so attractive as that which leads to virgin gold- gold which can be had by the mere act
of delving for it and washing from it the earth or dirt by which it has been hid” (1).
In the latest mineral exploration rush, minerals are still seen as a way out for some economies. Keeping
with Kiely’s, Bauman’s and Little’s theories of sovereignty and globalisation, ninety states have changed their
regulatory regimes since 1985 to be more mining industry friendly (Bridge 407). The preference for minerals,
specifically gold, is especially prevalent during times of economic hardship such as the financial melt-down of
2008. Towers emphasises that bad times call for a return to the international gold-dollar standard, abolished in
1971, to restore faith in shaky currencies. Gold rushes have traditionally offered hope and a chance at escape.
This has not changed from 1898 to today. LeBarge and Nordling state that from 2007-2011, “Yukon has
experienced a major boom in economic activity… [in response to]…ever increasing record world gold prices” (ii)
fuelled by economic uncertainty. Gold is ageless. Investors are becoming more and more nervous about paper
money in the globalised world, which can be produced with a click of a mouse (Buttonwood). This confirms the
fictitious nature of the modern economy that Baudrillard presents. As such, “[w]hile rich-country central banks are
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busy creating money, developing-world central banks are buying gold – a record 158 tonnes in the 2 quarter [of
2012]…”(Buttonwood). This is increasing demand for the metal. For any gold rush to occur Cronen states that
there needs to be perfect conditions (49). An increase in the demand for base metals, a politically favourable
environment, a flight to gold as a strong currency, and the price of gold have all contributed to renewed interest in
Yukon’s mineral sector (Deloitte 6). Further to this is the discovery of Carlin-style Gold deposits in the Osiris area
similar to the lucrative deposits found in Nevada (Lewis and Burke 19). Dirlik mentions that globalization has also
created new geopolitical networks that are competing over global resources (11). In the north, Piper (283) notes
that the resources sought are suited to an industrialized marketplace whose need for them is fuelling the urgency
for exploration. Steger adds that “uncontrolled population growth and lavish consumption patterns” (85) are
impacting the need for exploration and mining. Metals, fuel minerals, industrial minerals and construction
minerals are all being actively sought to keep up with demand (Bridge 206).
Globalisation may have been a factor in the Klondike Gold Rush, but the main driving force was the appeal
of placer mining. 1898 found the world in a state of industrial malaise. With reference to mining, Morse states
that “[a]ll of these forms of bodily engagement with a real…world offered a remedy for the unsatisfying existence
of industrial life” (121). Productive manual labour outside of industrialization and offices was a big draw at first as
it was viewed as a way to re-connect with nature (116). Furthermore, low capital investment was required to mine
placer gold (Porsild 72). Morse writes that “[a]lthough most Western mining by the end of the 1890s was heavily
industrialized, dependent on capital investments in machinery and processing plants, mining in the broad basin
carved by the Yukon River remained surface, streamside, placer mining. A miner needed very little initial wealth to
seek and mine placer gold. With a few hand tools and a willingness to labor in the earth, gold could be his” (4).
This was not entirely accurate, though. It was not as simple as pulling huge nuggets out of a creek with every
shovelful. Tappan Adney states “while Klondike mines are ‘poor men’s’ mines, in the sense of being placerdeposits, still, when not only the expense of reaching the country, but the cost of living while there, and the cost of
working the mines is considered, the Klondike is not a poor man’s country” (252). The little equipment required to
placer mine included a shovel, gold pan, rockers and long tom, sluice box and riffles (Gould 55-64). Miners would
sink a shaft and erect a windlass to excavate overburden in the hopes of getting down to bedrock and a pay streak.
Once at bedrock, underground drifting would be used to determine the direction of the pay streak and where
efforts should be concentrated (65-75). Miners also performed open-cut mining where water would be diverted,
soil stripped and thawed and washed through a sluice box without the need for underground shafts and drifting
(75-80). As the Klondike Gold Rush progressed, mining techniques such as steam points (Milvain 6) for steam
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thaws and cold water thawing (Gould 53) improved efficiency and allowed for mining to occur in both winter and
summer (Allen 11).
The current mineral exploration rush is based on quartz or hard-rock deposit mining. The main difference
between placer mining and hard rock mining is that mineral veins are housed within bedrock in quartz mining and
their extraction is capital intensive. Hard rock mining searches for the mother lode and it is increasingly harder
and more complex than placer mining (Hovis and Mouat 430). It is difficult for independent or junior prospectors
to be able to afford the work required to establish a hard rock mine in face of giant, globalised competitors.
Opportunities are limited for small players as opposed to the Klondike Gold Rush which was an every man
occasion.
Yukon’s quartz potential was recognised during the Klondike Gold Rush. The angular and coarse gold
found in the placer deposits of Bonanza and Eldorado creeks showed no evidence of having travelled any great
distance, leading many of the era to believe that the mother lode was not very far away (Haskell 538). Adney
(370) states that in 1897, there was a quartz vein found by some prospectors poling up the White River.
Coincidentally, this is the same area that the White Gold discovery touched off a rush 110 years later. Although
this quartz potential was known during the Klondike Gold Rush, Leonard (174) mentions that the amount of money
required to access these deposits was prohibitive at the time. Prospectors needed to sell off to capitalists to
engage in anything other than placer mining. Leonard, however, did predict that the future of mining in Yukon
would lay in her quartz mineral reserves (73). Similarly, Allen states “[t]here seems to be no doubt that some
wonderfully rich surface indications and prospects have been found, and several old quartz miners report that it is
opinion that some of the richest gold quartz in the world is here in the Yukon” (12). Yukon being re-discovered for
its quartz potential was only a matter of time and gives credence to Marx’s (39) theory of how capitalism will chase
opportunity around the globe.
11. Mining Techniques, Innovations and Finance
There have been many obvious and more subtle innovations in mining since the Klondike Gold Rush. In
their article “Miners, Engineers, and the Transformation of Work in the Western Mining Industry, 1880-1930”,
Logan Hovis and Jeremy Mouat provide an enlightening overview, touching on many of these changes. Prior to
1850, most metal mining was done using few, simple tools by small groups and individuals and mostly on the
surface (436). Mining changed between 1880 and 1930 with the rise of technical training and engineering. At the
same time, “remote mining regions were being integrated into national and international industrial economies”
(442) via new rail networks. Both contributed to a rise in mass-mining practices as they increased “the adoption of
high volume, nonselective methods”(435) including open pit mining which was cheaper, required less labour and
produced greater amounts of ore . Cyanide and floatation treatments of concentrates also came to the forefront
during this evolutionary period (448). The nature of work in mines also changed. Hovis and Mouat state that
“[b]y 1930, the mining engineer and metallurgist – and no longer the skilled miner- had assumed ultimate
responsibility for the success or failure of a mine” (433). Previously, the miner was a trained artisan whose skill
was based on an apprenticeship and practice. Miners became assembly-line grunts who saw a loss of status and
decrease in skill (456). Increases in mine productivity from mass production techniques also decreased the
number of mining jobs available. The jobs that did remain became more contractually based with bonus
incentives replacing day-wages (452). This evolution, which has affected Yukon, was made possible by large
amounts of global capital as these changes did not come cheap. While it is true that there are still two types of
mining- surface (open-pit, placer, and quarry) and underground (Stevens 200) - that is about all that is similar with
regards to mining and exploration techniques between the two rushes.
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The current exploration rush is a different game completely from the Klondike Gold Rush. For starters,
the targets that companies are going after are a far cry from surficial placer deposits. Companies now want the
quartz mother lodes. Bridge (416) states increases in technology have now made prior unprofitable targets
profitable. As a result, deposits that were overlooked for decades are now seeing renewed interest. The manner
in which these targets are acquired is completely different, as well. Due to companies having larger amounts of
capital, there is now a stake-first-explore-later model of exploration. “Staking claims before ground truthing
potential mineralization is a new exploration operating procedure for companies in Yukon as a result of intense
competition for ground in high-interest areas” (Lewis et al. 19). Companies can now afford to claim large swaths of
land before assessing it fully. When exploring claims, technological changes since the Klondike Gold Rush are also
visible. Modern exploration techniques fall under one of four categories: geological, geochemical, geophysical,
and drilling (Stevens 130). Soil sampling is used to test for trace arsenic which is found in conjunction with gold
(Towers). Stream sediment analysis is used to determine the composition of streambeds indicating mineralization.
pXRF (portable X-ray fluorescence) and field based sample analysis are increasingly being used (Lewis et al. 20) as
handheld units gather information that can be uploaded unto maps and into databases making field information
quickly and easily accessible anywhere in the world (FTT1 2). Aeromagnetic and airborne gravity surveys are also
done to explore the mineral potential of claims. It can be said that current exploration techniques are also out of
this world as images provided by the Canadian Space Agency are used to infer mineralization based on topography
(SCNR 7). In addition, old placer occurrences are being used to map inferred hard rock sources (Bond 75). All
these modern techniques are expensive and out of reach of most individuals, but not global corporations, giving
them a competitive advantage. The results are used to create preliminary economic assessments on the claims.
Stevens (186) explains that if these look promising, pre-feasibility and feasibility studies are done in order to
further attract investment dollars.
Investment dollars are crucial as mining is not a cheap undertaking. Royalties of up to ten percent and
fuel bills of $25,000.00 are commonplace. Not to mention equipment breakdowns that can routinely cost
$30,000-$40,000 (Towers). Stevens (237) mentions with the cyanide and heap-leaching techniques used in the
modern mining game, the costs and need for investment increases exponentially as more equipment and more
man power are required to run multi-billion dollar operations. As such, the majority of these operations are
international. Stevens notes that “[m]ining and exploration are a business. As such, they rely on the capital
markets to operate. Without the stock market there would be no exploration industry, and without the larger
financial institutions that support mine development there would be no mining industry” (10). Participating in a
game of speculation based on potential are prospectors, junior mining companies, and international majors (9).
This potential is paramount to investment. Stevens accentuates it by stating that “[o]dds may be low but stock
interest is high based on potential” (5). Potential has been known to drive junior mining companies to liberally
interpret geophysics to create false positives in order to attract more investment. For juniors, “[t]he mission…isn’t
to mine the ground themselves but to grab as much land as possible and flip it once more to an even larger
international mining company” (Towers). Berdahl explains that “[m]ost modern stampeders participate from the
comfort of their offices and homes by simply buying stock in public companies that are exploring the North…CEOs
and financiers navigate the tumultuous junior mining markets, attempting to promote their projects and secure
funding for further exploration”(55). This funding comes from two main sources: equity financing on stock
markets and revenue from operating mines (Stevens 12). Joint ventures and exploration alliances are becoming
increasingly popular as the costs of exploration increase. Option agreements are also another avenue in which
exploration property can be acquired (125). These agreements “set forth the legal terms and conditions under
which one party (the optionee) may acquire the mineral rights to an exploration property from a second party (the
optioner). In this case, the mineral rights have already been staked or acquired by the optioner” (125).
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As previously stated, the effects of globalisation can be split into two categories: tight economic and
broad social. The logical starting point in comparing economic effects between the two rushes is by looking at the
value of the dollar, the price of gold, and how much mining contributes to Yukon’s economy. One dollar in 1898 is
equal to $26.32 now (Inflation Calculator). This inflation is partly attributed to globalisation. In 1971, the gold
standard was abandoned in favour of a floating currency by the United States in order to remain competitive in the
global economy. This move made the dollar much more susceptible to volatile inflationary forces resulting in the
current value.
12. Economic Effects of Globalisation on Yukon Between the Rushes
12.1 Price of Gold and Contribution of Gold Mining to Yukon Economy
The price of gold is another area to compare. In 1897, gold was $20.67 per ounce (Gould 40). Klondike
gold, in 1901, was worth $16.50 per ounce as it was not 100% pure (Allen 17). As of March, 2013 gold sits at
roughly $1600.00 per ounce (goldprice.org). Factoring inflation, gold is now actually worth approximately three
times what gold was worth during the Klondike Gold Rush which has made mining it a more profitable venture
now than it was in the late 1800s. The question here is why? In theory, globalisation liberated currency from gold,
thus demand should not be as high. However this is incorrect. As paper currencies are unpredictable, gold is being
re-visited as a solid currency increasing its demand. Also, as globalisation has created a global consumer society,
the corresponding demand for gold and other raw materials to manufacture goods has sky-rocketed further
increasing demand and price. In terms of contribution to the economy, the gold output of the Klondike in the final
year of the rush (1900-01) was approximately $25.5M in 1898 dollars (Allen 17). This came from an area about 800
square miles in size (11). In 2007, just prior to the latest rush, there were 170 exploration projects spending
$130M on exploration in the territory with gold exploration at 29% (Burke et al.3). 12,123 claims were staked (4).
On the placer side, there were 107 mines employing 350 people pulling out 63,929 crude ounces ($38.13M CDN)
of gold mostly out of the Dawson area (88%) (LeBarge 43). There were also 24 exploratory placer operations (45).
The peak of the latest rush, 2011, saw four major gold exploration districts – the Selwyn Basin, which is a
Carlin style similar to Nevada; The Dawson Ranges where the White Gold District is located; the Southwest Yukon
which is similar to the Juneau Gold Belt; and South-Central Yukon (Lewis and Burke 23). It was a record setting
year for exploration activity with over 100 companies actively exploring and spending over $300M looking for gold
(69%), lead-zinc (16%), silver and copper (7%). There were 114,587 claims staked, mostly between Feb and May in
order to preserve interests (19). Mines (Capstone’s Minto Cu-Au-Ag; Alexco’s Bellekeno Ag-Pb-Zn; Yukon Zinc’s
Wolverine Zn-Au-Cu-Pb-Au), accounted for an additional $160M in development expenses (21-23). Mineral
production contributed ~$485M, whereas it was $46M in 2006 (YMAB 2). Globalised Chinese investment also
came to the fore with the Selwyn-Chihong partnership in the Selwyn Basin and the Yukon Zinc- Jinduicheng
Molybdenum Group Ltd. Partnership at Wolverine Mine. The 2011 output topped the highest figure of the
Klondike Gold Rush by nearly a third.
As a consequence of global economic uncertainty, 2012 saw an exponential decrease in activity in Yukon.
Yukon Government states that “global investment markets have soured [and there is] trepidation in light of
problems associated with Europe and the Euro [resulting in a] current [exploration expenditure estimate [of]
~$168M…Staking of new claims in 2012 has been greatly reduced…” (FTT3 1). As of December 31, 2012, there
were only 11,733 new claims staked, a tenth of the previous year. The downturn is further evidenced in the
numbers from January 2013 where there were zero new claims staked in the territory demonstrating how
globalisation has strongly affected the basic economics and activity of Yukon’s mineral industry.
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12.2 Rise of Industrial Economy
Yukon’s unique economy presents a second area of economic comparison. At the start of the Klondike
Gold Rush, there was a mixed economy based predominantly on traditional hunting and gathering and very light
industrial development. The Klondike Gold Rush propelled Yukon towards a full-on industrial economy. The
minerals sector is the most significant private sector economic force in the territory (YG 2003: 3). The territory
receives up to six million per year from resource royalties (Cruickshank) helping to pay for the infrastructure
upkeep and upgrades required for the current and future mines to operate. Mineral sector jobs pay 1.7 times
those in other sectors and the minerals sector finances infrastructure and local businesses (YG 2003: 3). This
evolution has occurred as globalisation has moved in and is consistent with Heininen and Southcott’s theory of
circumpolar economic progression. The industrial market found in modern Yukon is highly tied to capital markets
(Deloitte 19). There are approximately 86 active mining projects on the go in Yukon (12), with 11 having more than
$100M market caps (13). In Yukon, $4.4B worth of gold (at today’s prices) has been recovered between 1885 and
2011 (3). Gold, silver, copper, lead and zinc are the primary mineral drivers with three hard rock mines currently
operating; Capstone’s Minto copper mine; Yukon-Zinc’s Wolverine lead-zinc mine; and Alexco’s Belle Keno silver
mine. Getting these mines to production is no easy or cheap task. The average start-up costs of a mine in Yukon
are roughly $200M (SCNR 21). Contrast this to the costs of placer mining in which Big Alex McDonald, one of the
Klondike Kings, estimated that including start up, materials, labour and equipment, it cost roughly $5.00 per cubic
yard to mine during the Klondike Gold Rush (Adney 249-252). Following Haskell’s (550-552) list, the cost of setting
up a placer mine and working it ran at least $7,000.00, not including any hired labour to help. Leonard (90) warns
that it was a hard life at best and that miners should go prepared as it could take anywhere from two to five years
to make a profit, if they were fortunate. Although these costs are expensive, even factoring inflation the costs of
modern mining are exponentially higher than hand mining in 1898. As these “capital expenditures required to
build a mine often exceed the market capitalization of a junior mining company…large capital investment must be
sourced from industrial partners such as large-cap mining companies or industrial conglomerates or state-owned
entities (SOE) overseas” (Deloitte 16). This is where globalisation’s affects are especially evident in Yukon. It has
long been known that capital will follow opportunity. This was even apparent in the Klondike Gold Rush of 1898.
Allen captures the mood at the time with the following quote: “The prospector leads the way, the capitalist
follows” (12). Morse expands by stating that miners carried industrial capitalism over the passes with them into
the Klondike (13). If one follows links outward from the Chilkoot Trail, connections to worldwide industrial
economy are found (9). Capitalism brought with it foreign investment. Little effort was expounded by the
Canadian government to keep foreign investment out of the Klondike (Southcott 46). This was evidenced in the
construction of the White Pass & Yukon Route Railway (WP&YR), financed by British interests but controlled by
Americans, and in the creation of the Yukon Gold Corporation, financed largely by the Guggenheim family (46).
Companies in 1898 had large financial backing, mostly in the transportation sector (Porsild 169). These companies,
such as the steam-driven railways and the paddle wheelers “revolutionized transportation speed in ways that
transformed older ideas of space, time, and distance” (Morse 11). The WP&YR, for instance, turned a three to four
month journey over the Chilkoot or White Passes into a 12 hour train ride (61). Milvain (7) states that it was just
after the gold rush, in 1904, that multi-national companies really took hold of the Klondike with the introduction of
dredging. Marx’s theory of industrial labour was also evidenced in the Klondike. As the Klondike Gold Rush
progressed, workers lost control of their own labour and fell under a wage-labour system as the region
industrialized (Morse 118). With this industrialization came stability. Businesses and merchants were not fly-by
night operations. In 1901, 62% had been there since 1898 (Porsild 170). The California Gold Rush of 1849 set the
precedent for labour in the Klondike. As technology improved in California and hydraulic mining was introduced,
15
labour and individual prospectors were orphaned as wage labour owned by investors took over (Isenberg 127).
These labourers also tried to control water to make mining more predictable and attract more investment dollars
(127). The same situation occurred in Dawson by the end of the Klondike Gold Rush as dredges were being
introduced. Former placer miners now employed as dredge hands (wage labour) constructed an elaborate
pipeline to bring water to the Klondike from the Tombstone Mountains, 70 miles away, in order to provide a stable
water supply that would attract investment dollars. Once these dollars were attracted, larger-scale mining
operations were established. Neufeld and Habiluk (8) state that by the turn of the century, it was apparent that
the future of the Klondike lay in corporate mining. Gould elaborates, stating that “[t]he hand mining-phase of the
Klondike era lasted only about three years…by which time the rich ground had been exhausted. What was left
could not sustain the expenses of hand mining, which necessitated the importation of machinery to move larger
amounts of gravel. However, in order to use the larger machines…it was necessary to consolidate claims into larger
blocks” (13). This resulted in mining concessions where the federal government granted large swaths of claims to
private interests which further turned Klondike mining into wage labour (Porsild 88). By 1904, the day of the lone
placer miner toiling away in the creeks was over once Joe Boyle and the Yukon Consolidated Gold Corporation
received the Boyle concession lands from Ottawa and launched large floating dredges. All this mining activity did
not come without a cost as Morse explains; “[c]apitalism turned all of the earth’s resources into commodities,
given value by markets, separate from any broader considerations of human subsistence or of the earth’s own
limits of production… [it has] treated nature…as an instrument to be harvested and exploited to the point of
destruction for maximum profit” (12). Piper agrees with Morse noting that “[e]nvironmental historians see
capitalist greed and the abstraction of the natural world into commodities as the motive and mechanism driving
mining men and allowing their transformation of living nature into dead and mechanical industry” (141).
12.3 Mining and Investment
The economic impact of globalisation between the two rushes is especially evident when looking at the
modern mining investment and finance game. Bridge states that “[t]he geographical restructuring of mining
investment over the past decade is frequently interpreted as a process of globalisation” (417). This globalisation
has created a mining industry that is global and gigantic. Stevens (ix) explains that it mixes science and engineering
with business and finance and is propelled by a desire for discovery to become a primary wealth creation industry.
Marry global mining companies searching for profit and the new paradigm of speed created by time-space
compression and one sees there is little downtime in the new game. Staking crews are even working Christmas
Day in order to outpace their rivals and claim their desired prospects. Old school prospectors who receive funding
for project proposals are often returning to their intended prospects to find the ground already staked in the
blanket approach that the new mineral exploration rush has created. Capitalism and industry merge to create
such competitive environments. This was seen in the Klondike Gold Rush in the battle for wood by the
transportation companies. Paddle wheelers, fuelled by wood, were the main mode of transportation of goods and
people on the Yukon River. It would take on average 120 cords of wood to travel from Whitehorse to Dawson –
downstream. Morse explains that “[w]ood agents tried to tie up all the available wood to prevent others from
getting it and to bring the competition to a literal standstill. When the large companies bought all of the cut wood
along the river for the season, they forced other boats to cut their own wood” (87). This led to inevitable delays on
the river for those not fortunate enough to have pre-cut wood which naturally translated into lost business to the
competitor who bought all the wood at the outset. Fast forward to 2011 and a similar situation occurred in Yukon,
this time not with wood but claim tags. In order to stake a claim, a metal tag with the owner’s name, the date
staked and the claim number attached must be affixed to a four by four square post driven into the ground. In
January, 2011 there was a limited supply of these tags to be purchased at the Yukon Mining Recorder Offices.
Golden Predator, a larger exploration company working in the territory, proceeded to buy all 70,000 of them,
16
effectively stalling the competition until temporary regulations could be put in place and the stock replenished
(Lam). At a cost of $140,000, this could not be done by any company without large pockets. This caused quite a
stir and was even considered by some to be more ruthless than claim-jumping back in the Klondike Gold Rush.
Mines that are developed as a result of exploration in the modern globalised mining industry are
monstrous in comparison to those of the Klondike Gold Rush. Most are also hard rock as opposed to placer. The
three newest mines of scale in Yukon are all large undertakings employing roughly 200 people each financed by
large corporations. New miners are not simply digging in the ground with a pick and shovel. According to Stevens
(3-4), the sequence and timeline of a modern mine is as follows: exploration - 3-12 years; consultations,
permitting, and financial analysis – 2-7 years; construction - 1-4 years; mining, mineral processing, smelting, and
refining - 5-100 years; and closure and reclamation – 2-5 years. These are complex ventures completely opposite
to the mines of the Klondike Gold Rush where one could be digging in the afternoon what was staked and
registered that very morning.
12.4 Changes in Legislation, Regulation and Funding
Changes between the rushes have also occurred in the government’s role in regulating and contributing
to the economic situation of Yukon’s mining industry. Historically, Yukon Territory mining legislation was based on
the legislation coming out of the California Gold Rush. This was in part due to the speed of onset of the Klondike
Gold Rush. Stampeders were flooding into an overlooked area of Canada in which there were no real mining laws
that was sparsely populated by First Nations, missionaries, a few merchants and the odd white prospector.
Dominion Surveyors had travelled through the territory; however, there was not a significant permanent military
or legislative presence. This all changed rather quickly once word got out of the abundant gold in the creeks
around Dawson. “The influx of prospectors during the Klondike Gold Rush created a requirement for better
administration that led to the formation of the Yukon Territory” (YG 2003: 3). New legislation was evidenced with
the North West Mounted Police (NWMP) controlling traffic over the White and Chilkoot passes. Grant (181)
emphasises that border control and sovereignty were two of the first major areas of enforcement that had to be
addressed. The lack of provisions that most stampeders were bringing to the Klondike was another area of
concern. Fortunately, this could be dealt with at the border as the NWMP enforced new regulations requiring
each stampeder to have a tonne of goods with them as they crossed. Haskell (497) explains that many miners of
the era would have been content and actually would have preferred to have Yukon fully adopt American and
California mining laws. Isenberg (128; 134) states that under California legislation, miners received preferential
treatment as the importance of mining to the economy took precedence over any environmental or social issues.
This legislation also defined what constituted claims in good standing. Isenberg states “[i]f unworked, a
th
prospector’s claim lapsed entirely. The regulations thus both drew upon and supported the mid-19 century
notion of free labour; each prospector was entitled to a single claim of limited extent so long as he laboured it”
(127). Legislation also “funnelled natural resources from public lands into the control of entrepreneurs” (124).
Yukon regulations in 1898 were also based on the Free Entry System. Lapointe (2) defines this system as
recognising “the right of any person to freely access lands and resources for mining purposes” so long as the
minerals are in public ownership. To claim ownership of the minerals, a prospector was required to stake a mining
claim. In order to stake this claim, all that was required was that one possessed a Free Miner’s License (Allen 13).
The fees associated in 1901 were: miner’s license $10.00, entry fee $15.00, recording a claim $15.00, registering a
claim $2.50, and transferring a claim $2.00 (14). The British government tweaked the American legislation and
added a five percent royalty to the Crown causing many miners to feel that legislation in Yukon was excessive (14).
This sentiment was a double-edged sword. Leonard states “[t]here are many and just complaints regarding the
hard rules enforced by Canada in respect to mining claims on the Yukon, but on the other hand, the protection
afforded by their agencies of law and order cannot be too highly commended” (130).
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The Gold Commissioner was one of the key law enforcers during the Klondike Gold Rush and he was
promptly besieged and could not keep up with all the activity (Haskell 424). Disorder with claim enforcement, such
as many claims measurement errors, had to be corrected by official survey parties (276). The modern rush is no
different. During its peak, Yukon Mining Recorders were besieged and could not keep up with the imputing of
claims and the plotting of them on digital maps. Consequently, staking crews would be dropped off in the field
only to find the targeted ground already staked.
Globalisation has influenced the manner in which territorial governments legislate mining. Warhurst and
Bridge state that “[s]ince 1989, 75 countries have liberated their investment regimes for mining” (1) in response to
the growing competitive global economy. As capital becomes increasingly mobile, corporations set up shop in the
jurisdictions that have the friendliest environments for their bottom-line.
Unique to mining is the Yukon Mine Plan released in 2003 in response to upcoming Devolution. This plan
was established to encourage the minerals sector to come to and invest in Yukon and included the key
components of sustainability, information, incentives, infrastructure, networks/communications, and education
(YG 2003: 3). Said Devolution handed control over resource management to the territory from the Canadian
Government through the Yukon Northern Affairs Program Devolution Transfer Agreement (SCNR 42). As such,
Yukon has a degree of autonomy not seen in many other jurisdictions. The Yukon Environmental and Socioeconomic Assessment Act (YESAA) regulates the transferred responsibilities and consists of a detailed process in
which mining projects get approval (42). In short, this process consists of a proponent submitting a project
proposal to the regional YESAB office that is reviewed by an assessor with input from any stakeholders that may be
affected. An assessment report is then submitted to the Yukon Government Decision Body for project acceptance
or rejection. If the project is accepted, the proponent then registers in compliance with the Mining Recorder
Office and final approval based on acceptance conditions is granted. (GOC 2003; EMR 25). If it is rejected, it’s back
to the drawing board.
Adding to the uniqueness of the Yukon is the fact that since 1992, 11 of 14 Yukon First Nations have
signed self-government agreements settling land claims. Burke (2012) states that within these agreements there is
also active participation by First Nations in resource management decisions which helps to create a stable business
environment and to give Yukon a competitive advantage. Scholte (141) states that globalisation has been aided by
the state - infrastructure, liberalization of tax structures, property rights, and sponsorship of global governance have all contributed to its rise. Yukon is no exception. The Territorial Government is taking an active role in
promoting its mineral potential in response to the demands of the globalised economy. Coal, gold, copper, zinc,
and iron brochures are issued by the territory’s Economic Development branch touting their potential not only in
English, but also in Chinese with an eye to the future for potential investors (EcDev). Furthermore, the Yukon Gold
Mining Alliance holds annual tours through Europe, Asia and the major financial centres in North America as part
of the government funded initiative to increase Yukon’s profile.
There are also financial incentives for mining and exploration provided by Yukon Government that did not
exist during the Klondike Gold Rush. In response to the competitive globalised market, a re-vamped royalty regime
and favourable tax structures have been implemented (Deloitte 22-23). Funding for Non-Government
Organisations concerned with workforce education, for example the Yukon Mine Training Association, is also part
of Yukon’s strategy (SCNR 8). One of Yukon Government’s initiatives having the most impact is the Yukon Mining
Incentive Program (YMIP). Torgerson defines YMIP as “a funding program designed to support individual
prospectors, partnerships and companies by providing a portion of the risk capital required to locate, explore and
develop mineral occurrences in Yukon” (79). It has been highly successful in generating exploration activities and
dollars within the territory. The Energy for Yukon initiative is also being marketed by Yukon Government to attract
18
global investors (Adilman 86). This program is aimed at solving the energy crisis in the territory by turning to
liquefied natural gas as a fuel source. Federally, Ottawa has also kicked in financially with the Geo-mapping for
Energy and Minerals (GEM) and Strategic Investments in Northern Economic Development (SINED) funding for
geoscience and economic development programs (SCNR 4;6).
The boom in exploration has brought with it a shortage of labour required to fill the positions created in
the minerals sector and the spin-off ones created as a consequence of the positive economic activity in the
territory. In Whitehorse and Dawson, employers are experiencing difficulty filling vacancies, particularly in the
service sector as there are higher paying mining, exploration and staking jobs to be had. Yukon Government is also
having a hard time holding on to trained professionals as industry is poaching them. In the past two years alone,
Yukon Geological Survey has lost four Geologists to the private sector. In response to the shortages, the Temporary
Foreign Worker Policy at the federal level is helping alleviate some of the pressure. Foreigners are being brought in
to fill vacant positions on temporary work visas. There is a huge drawback to this, though, as the next generation
of tradespeople are not being properly trained (SCNR 18). This is a short-term, stop-gap solution at best. At the
territorial level, there exists the Yukon Nominee Program which “allows qualified foreign nationals the opportunity
to work and settle in Yukon with the long-term goal of establishing themselves as permanent residents (PR) of
Canada” (YG -NOM). Both programs are helping alleviate some of the current pressure, but neither is providing
long-term solutions.
One of the greatest impacts of globalisation on mining regulations in Yukon comes in the form of
environmental controls. Globalised environmental groups and First Nations are placing pressure on governments
and corporations to perform mining in a more conscientious and sustainable manner. Socio-economic factors are
now taken into consideration before mining takes place. Modern Yukon mining regulations have environmental
and construction monitoring built into them. Reports are filed weekly or monthly to ensure that conditions are
being met. Once a mine is built, engineering inspections must occur annually to ensure it is operating in a safe
manner. Furthermore, annual reports for each permit and license, for instance water licenses, etc., must also be
submitted to ensure compliance (FTT3 2). These licensing requirements are a new development since the Klondike
Gold Rush and are examples of the effect of globalisation and social movements that will be examined later in this
paper.
One aspect that has been continuous through both rushes is that of a sentiment of mistrust towards
legislators. Adney (437) states that in 1898, the Gold Commissioner was thought to be corrupt and the system
excessive with the royalty fees. Nowadays, Little (142) presents that governments and legislators in the north are
thought to have little honour, reward the biggest liars, and evoke a sense of fear in their citizens. They are also
accused of supporting industry and markets over their communities and social programs (35). Recent examples of
this are Bills C-38 and C-45 passed by the Harper Government in June, 2012 and December, 2012 respectively.
These both limit environmental assessments of industrial projects (SCNR 61) and were added to budget bills to
ensure passage without much consultation evoking a sense of betrayal among many Canadians. This mistrust has
many sources, none the least from witnessing the changes to one’s life brought on by globalisation. These tie into
the second area of focus for this study – that of globalisation’s social effects on Yukon.
13. Social Effects of Globalisation on Yukon Between the Rushes
13.1 Demographics and Dawson Life
Globalisation has always been part of Yukon’s social fabric. There was an influx of foreigners during the
Klondike Gold Rush looking to strike it rich. Leonard (138) states that there were men of all sorts. Haskell agrees
as “[i]t seemed as if nearly every nation on earth was represented” (336). These newcomers reported
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employment in 94 different occupations, of which miners and manual labourers were the greatest. There was also
a large professional element of lawyers, teachers, and medical professionals (Porsild 18). In 1898, 92 percent of
the population in Yukon was male and the majority of Yukoners were single (57%) (208). By the 1901 census, there
were 40 different nationalities making up 20% of Yukon’s population. Forty percent of the population was
American and 40% was British (Canadian included). Women counted for 15%. Dawson had a higher rate of
women at 19% (208). The 2011 Census found 1319 residents in Dawson (Statistics Canada, 2012) of which nearly
70% are white, 29% aboriginal, and 1% other, with many working for government, First Nations, the arts, tourism
and of course the minerals sector. There is also a nearly even split between men and women, 51% to 49%, a stark
difference to the low percentage of female population during the Gold Rush era (YBS 2012).
Reaching the Klondike in the late 1800s entailed a roughly ninety-day trek (Adney 175). A two hour flight
from Vancouver to Whitehorse, offered daily, followed by either a six hour drive on a paved highway or a
subsequent hour and a half flight is all that is required today. This is a great example of the time-space
compression and revolutions in technology presented by both Morse and Gleick. Each 1898 era stampeder, in
response to the famine of 1897, also had to pack an outfit that would allow for survival for a year (Haskell 54).
Provisions are now no harder to come by in Dawson than they are in larger southern centres. The most common
strategy for families during the Klondike Gold Rush was to migrate together to join a father or brother or son, and
sometimes a mother, sister or daughter, who originally embarked on the stampede once that family member had
established themselves (Porsild 92). This chain migration enabled the creation of a strong sense of community that
was highly stratified with the lowest strata being the whores, Metis, and First Nations (196-197). Porsild notes that
“[m]any Klondikers remembered Dawson as a highly stratified society” (14) consisting of four social levels, with the
elite being the white-Anglo-Saxon Protestants (164). Mary Hitchcock and Edith Van Buren gave witness to this
social stratification in Hitchcock’s Women of the Klondike. Her work details the two women’s vacation to the
Klondike in 1898 as white, upper class women with a disdain for what they considered to be filthy conditions in
Dawson intermixed with little respect for the First Nation inhabitants who lived there previously. This disdain also
extended to citizens of classes they considered beneath them. By the time the actual rush was over, Klondike
society had emerged as cosmopolitan, stratified, family-unit oriented, racist, and working class with networks
based on culture, class and place of origin (Porsild 194-195).
Upon arriving in 1898, the newcomers found a “lively camp” replete with drinking and carousing (Leonard
134). Haskell (375) agrees by stating that the environment was ripe with gambling and dance halls. This camp was
2000 yards wide, a mile and a half long, situated in a swamp and contained roughly 300 cabins and buildings, a
NWMP Barracks with 30 constables and the sense of commerce, industry, retail, and services taking hold (Adney
178-179). Leonard adds that “Dawson is laid out in rectangular shape into lots and 66 foot streets…It lies on low
ground on the east bank of the Yukon, a short distance below the mouth of the Klondike River” (130). The town
was mostly tents, “although a good many houses have gone up, many of them being finer than anything
heretofore known on the Yukon” (130). He (148) describes how new businesses were opening nearly every day,
with saloons being the most numerous. There were also an abundance of blacksmith shops, barber shops,
bakeries, laundries, and restaurants (150). Allen (23) goes on to state that Dawson was also the centre of the local
lumber industry supporting numerous sawmills, none the least the ones owned by Joe Ladue and Martha Munger.
According to Porsild, “[b]y the summer of 1898, the clutter of canvas tents and log huts on the mud had been
transformed by enterprising residents into a bustling town complete with banks, law offices, wood frame hotels,
theatres, dance halls, churches, and even a hospital” (8). By 1901, Allen describes Dawson as a “flourishing
city…one of the most modern, and at the same time, perhaps the newest and most isolated city in the world” (22).
Leonard (151) believes that Dawson was fairly healthy. Scurvy was the most common complaint and there were
some cases of rheumatism. Porsild contests this belief. “The stampede summer of 1898 was the height of the
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Klondike Gold Rush. Dawson City, built as it was on a mud flat with no sanitation or drainage, was soon a city of
twenty thousand souls exposed to disease” (146). Haskell corroborates Porsild as he states that “[t]here would
seem to be no question as to the locality being unhealthy and subject to malarial ailments” (355) owning to the
underlying permafrost inhibiting proper drainage of the town. In the creeks, scurvy, typhoid, smallpox and
measles were common (Porsild 152). Thankfully, modern Dawson has antibiotics, medical technology, a year
round supply of fresh fruits and vegetables on its side and a new sewage treatment plant set to open, a stark
contrast to the unhealthy conditions of the town during the Klondike Gold Rush era. Ironically, today’s resource
workers are less likely than those of the 1890s to stay in the community for an extended period.
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At the turn of the 20 century, prices in Dawson were exorbitantly high. Gold dust was the currency of
choice and miners would stand to lose $4.00-$6.00 out of every $50.00 due to measuring errors (Adney 347). In
1897, a restaurant meal costs $3.50 (Adney 346) and a fine dinner could be $50.00 and up (Haskell 360). Hotels,
with a dorm bed at best, were $2.00 per night (Adney 349). A visit to the doctor would cost $5.00 minimum and a
day in the hospital was $10.00 (350). A household in Dawson circa 1898 cost roughly $400.00 per month to run.
To compare, a household in Toronto cost an average of $38.00 per month (Porsild 96). Price of goods also
increased and could double when supplies were low (Leonard 133) In the winter of 1897, flour cost $75.00$120.00 per sack, post cost $1.00 per letter, travel out to Dyea was $600.00-$1500.00, dogs cost $300.00 a piece,
sleds cost $40.00-$75.00, and fur robes were $200.00-$400.00. Three steamers failed to reach Dawson resulting in
grave shortages that winter (Adney 182-183). In general, the cheapest good or service was “4 bits” ($0.50) but all
were based on supply and demand. Whisky, however, was always four bits and the quality, often watered down,
varied with supply (Leonard 131). Lumber ran $150.00 per 1000 feet and $250.00 per 1000 feet planed. Logs cost
$30.00 per 1000 feet (134). Phone service was $15.00 per month; the telegraph came with a cost of 10 words for
$0.50 to Whitehorse, the same for $3.00 to Bennett and Atlin and $4.50 to the States and South (Allen 23). Most
importantly, the cost of mining was on average $2000.00 per year (Haskell 531). Wages somewhat corresponded
with the high cost of living. Unskilled labour earned $10.00 per day, carpenters $15.00 per day, and mine work
paid $15.00 per day (Leonard 134). Even so, poverty was widespread and fortunes were rare due to the high cost
of living. Allen states that “[t]he cost of living is generally counted high here, but whether it is higher than in other
places, all things considered, is a question not yet decided to any degree of satisfaction…It is the general opinion,
however, that the cost of living in Dawson will compare very favourably with that of other communities when the
increase of income, which keeps apace with that of expense, is considered” (23). Trouble was, not everyone had
high paying jobs or opportunities to keep afloat. Neufeld and Habiluk point out that “[w]hile a few garnered
fabulous riches, for most, the Stampede to the Yukon was an expensive, and generally uncomfortable, camping
trip…The first news of the strike sparked a rush of local miners. Before snow fell pretty much the entire Klondike
was staked and being worked by experienced sourdoughs” (1; 3). Sadly, many stampeders simply turned around
and left upon arriving in Dawson (Porsild 70).
Today, Yukon is still expensive, although prices are not nearly as exorbitant as during the Klondike Gold
Rush. Cost is still a prohibitive factor to investment, business, and living though. Huskey states that
“[i]naccessibility and high costs limit the extent to which the region’s known resource reserves are exploited” (61).
In Dawson proper, unemployment is low, rents are similar to Brooklyn and Aquafina cost $32.99 per case + deposit
(Towers). Airfare from Vancouver to Dawson is $478.00, four litres of milk in Dawson costs $5.50 and a litre of gas
is $1.45. Prices are still high, but not Klondike Gold Rush ridiculous. Globalisation can be partly thanked for this.
Revolutions in global supply-chains and transportation have provided the north with competition and year-round
steady supplies bringing costs down.
During the Klondike Gold Rush, the first challenge many prospectors faced when arriving in Dawson was
to secure housing (Porsild 60). Open lots were scarce and one could expect to pay between $500.00 and $1000.00
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for a cabin (Adney 193). Wood to burn in a Yukon Stove would cost $30.00-$45.00 per cord, and said stove would
cost $65.00 (193). Jump ahead to the current situation and difficulty finding housing in Yukon is still a major
concern for those requiring it. As mentioned above, globalised mining companies have solved part of the housing
problem by creating a culture of commuter mining based in temporary camps. For the firm, commuter-mining is
cost effective. For local governments, there are reduced infrastructure and welfare costs as well as decreased
environmental disruption (Bridge 49). However, these camps can create friction with surrounding communities as
quite often they are much larger than the surrounding towns (Little 25). Alexco’s Elsa camp, serving the Bellekeno
mine, houses nearly 150 people. The closest settlement is Keno City, ten kilometers away, which has around 15
year-round residents- a tenth the size of the camp. The increase in traffic and activity offends some residents.
Little explains that these camps also bring with them an “influx of mainly male labour, often rough, careless,
reckless individuals with no interest or commitment beyond making ‘big money’” (88). When one adds migrant
labour from foreign cultures to the mix that may not be aware of or sensitive to local customs or traditions, one
gets a recipe for local tension. With globalisation comes the boom-bust cycle and for those not lucky enough to
have housing provided for them by their employers or be stationed in the camps, the boom cycle is challenging as
demands soar. In Yukon, there have been instances where abused women have not been able to escape the cycle
of abuse due to the housing shortage (Stastysyn). Soaring housing costs are also an issue. Run-down bachelor
apartments are renting for $985.00 per month (Stastysn) straining single-income families or those who do not have
high paying jobs. A lack of available housing turns investors off, as well, which is not beneficial in a globalised
world. In response, the Whitehorse Chamber of Commerce and the Standing Committee on Natural Resources
have called for more reliable, adequate, affordable and healthy housing to meet demand (Kerr; SCNR 27). In
conjunction with the housing crisis, there is also a lack of power and major infrastructure gaps in the Territory.
SCNR (21) identifies aging and inefficient power plants, limited broadband, inadequate airstrips, undeveloped
services and a lack of roads as barriers to investment. In terms of energy, Yukon currently has a 130 megawatt
capacity and there are frequent outages and brownouts in homes across the Territory. The grid is already
stretched and there is a need for another 190 megawatts for mines on the horizon (23). A lack of power and
infrastructure compounds the lack of safe, affordable housing.
Dawson formed a strong sense of community during the Klondike Gold Rush of which “[r]esidents … were
both aware of and valued” (Porsild 12). There was a sense of normalcy established as schools, arenas, town halls,
and Churches were built. Although Leonard (148) mentions that the religious element was not prominent in
Dawson, Allen (24) states that by 1901, there were five churches – Anglican, Roman Catholic, Presbyterian,
Methodist and Episcopal and also a Salvation Army. Schools were aligned with standards elsewhere; however,
they suffered from a shortage of textbooks (25). Sports such as hockey and curling drew large crowds and the
arrival of women increased the social scene as there were three dance clubs with weekly dances (24). There was
also a free public library which offered free concerts. Factor in private socialization and “[t]he social possibilities of
the city assume rather imposing proportions” (24). Also found were two hospitals to serve the sick – the Good
Samaritan and St. Mary’s (24). Plus one cannot forget about the dogs. Leonard describes “[t]here are dogs. You
find them of every kind and degree, but they are highly valued” (147). Adney (209) corroborates this view.
Dawson City had grown up by 1901. Allen notes that “Dawson [was] no longer a mining camp…it had
assumed its proper place… [as] a great commercial and social centre” (22). It grew out of the Gold Rush into a
stable community aided by the Federal Government and their hiring of renowned architect Thomas Fuller to
design buildings that would give the town a sense of permanence and an air of self-sufficiency (Porsild 173). This
was necessary to attract dredge investment dollars from outside. Some were wistful about the change. Allen
states “with the passing of the mining camp goes also the pioneer” (22). This transition was essential though, in
order for corporate mining to take hold and ensure Dawson’s very survival. Many benefits for the community and
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for families existed in mining towns such as Dawson City. First of all, workers would be on a regular shift near
home, thus they would be with their families at the end of the day. Family life was possible. Second of all, there
was stability. Compare this with the modern mining industry and one can see how globalization with the transient
roots Bauman mentions has taken over. During the Klondike Gold Rush and in the immediate years after it, the
mining companies that held interests in the region were also based there. One such example was the Canadian
Mining Corporation which was headquartered in Bear Creek, just east of Dawson City. Bear Creek was a
permanent settlement of more than 65 buildings that was in operation from 1905 to 1966 (Parks Canada).
Workers lived and raised families there. This is contrasted in the recent exploration rush. The major players are
based in Vancouver, as well as in Toronto and China. This results in the creation of temporary camps that are
managed remotely. These are non-permanent settlements, made to be mobile and create as little environmental
impact as possible. These camps are also inhabited mainly by male workers. The absence of families and wives
creates an artificial environment. Furthermore the camps are run on rotational schedules; for instance four weeks
in, two weeks out. This translates to the men and fathers of families missing out on family life for multiple weeks
at a time. During this time, their spouse becomes a single parent and sole person responsible for the household.
Men are out of touch and exhausted when they return home. This is similar to when the first wave of prospectors
came to the Klondike and left their families behind. Only this time, in the age of commuter mining, families are not
asked to join. It is not hard to see how these camps are not conducive to normal family life and sense of
community. First of all, family members and citizens are gone most of the time. Second, when they come back
from camp, it takes time to re-adjust from the artificial world they have lived in for multiple weeks. Camp-life is an
altered reality. One is secluded in the bush for anywhere from two to six weeks on a rotational basis, working
every day for an average of 10 hours. It has been said that going to work in the camps is similar to going to jail.
There is isolation from one's family and friends compounded by seclusion, there is the exact same routine for each
day of one's rotation and good behaviour is rewarded. Consequently, there are similar interpersonal dynamics to
those of a prison that emerge. Cliques form and systems of exchanging favours and bartering are developed.
Switching back and forth between the artificial institutional world and the normal family routine is not easy. The
re-adjustments cut into family and community time. Near the end of the time off, workers have to prepare
themselves to go back to camp, creating yet another distraction.
13.2 Crime and Prostitution
During the Klondike Gold Rush, Dawson City was mostly an honest town. Tappan Adney remarks that
“[t]he Yukon has been too law-abiding for many stories of violence” (269). At the outset, there was more of an
element of lawlessness. Haskell (373) refers to the shooting of “Shorty” when he failed to pay his bar tab, for
example, but that soon settled as the North West Mounted Police (NWMP) arrived in greater numbers. ClaimJumping was one of the more popular and common crimes as were cache raidings (335). Adney (195) details the
raiding of his mutton stash in the fall of 1897. Theft on the trail was a grave matter, though, and the consequences
dire (Haskell 131). Leonard (146-147) states that there was a rigid honesty and trustworthiness present. Milvain
(3) notes that crime was little to none. Zachary Taylor Wood, a North West Mounted Police Commissioner,
confirms the law abiding reputation of Dawson. A critical analysis of his 1903 report reveals that during the years
1896-1900, theft was the most common charge and there were not an abundance of those. For crimes of a serious
nature, there were only 16 murders committed during the Klondike Gold Rush in Yukon (13-17). This is rather
remarkable considering the influx of outsiders and the magnitude of the rush. One reason may be that there were
no firearms permitted in Dawson or the major centres in the territory (Leonard 147-148). Also of note was the
fact that there was one way in and one way out of the Yukon; the steamships. Credit for these low crimes must be
given to the NWMP who had 286 men stationed in the Yukon by November 1898 (Wood 23). Adney (433) states
23
that these officers were highly regarded, in part because officer misconduct was not treated lightly. Rogue officers
were fined $15.00, suspended, and given two months hard labour (Porsild 181).
Although prostitution was not legal during the Klondike Gold Rush, it was recognized as a necessary evil in
an intense camp full of hard-working men and played a significant role in the town up to the early 1960s (Dawson
City Museum). In 1897, there were roughly 300 people employed in Red Light endeavours in Dawson. By 1898,
Porsild (100) presents the number had grown to around 1000 including dancehall girls and gambling hall
employees. No arrests for hooking were made until spring of 1898 (100). In the early days, prostitution was
supervised and regulated with a system of fines and medical inspections. The NWMP were more concerned with
controlling petty criminals and preventing crimes of violence than with policing morals. Initially, prostitutes were
allowed to solicit on the street, in the bars, in rented rooms or on their own lots in small cabins around Second
Avenue and Paradise Alley. Newspapers used endearing terms like the ‘demi-monde’ and ‘soiled doves’ to
describe them (Dawson City Museum). Unfortunately pressures from outside, mainly southern dissent, ruined this
happy medium (Porsild 105). As a result, raids were conducted on red light districts in which “far more women
prostitutes were arrested and convicted than were their pimps” (133; 116). Also, “Johning” was often charged as
“vagrancy”, another double-standard (133). Prostitutes were frequently arrested for thieving as well as
prostitution which was accompanied by an additional $50.00 fine and all associated court costs (123; 127).
Dawson City working girls made great money, charging four ounces of gold per fifteen minute trick (Morgan 82).
At $17.00 per ounce, this equated to $272.00 per hour in 1898 dollars. One eight hour day could conceivably
garner a staggering $2,176.00! Porsild (104) notes that the NWMP eventually moved the Red Light Districts to the
outskirts of town, (Klondike City, aka, Lousetown), and away from the main business centre (Paradise Alley).
Brothels did, however, re-emerge in the main business sector fronted as cigar stores and laundries serving
“[c]liental…from every strata of Dawson life” (133). Often, personal relationships in the demi-monde were
turbulent and abusive. Porsild notes that “[j]ust as they do today, pimps, drugs and alcohol swallowed up a good
portion of these women’s income” (119) resulting in a hard life.
Current research indicates that there is no open prostitution in Dawson City; however, other resourcebased communities note increases in sexual assaults and in juvenile women being pimped out. So far this has not
occurred in Dawson City; however the potential is there. In looking at violent crime statistics, under which sexual
assaults fall, there was an increase in Yukon of two percentage points between 2008 and 2009 at the start of the
rush (Statistics Canada 2010). There were 69 sexual assaults and the violent crime rate was 205.03 per 100,000
people in 2009 (2010). This is 3.3 times higher than the national average of 62.03 per 100,000 for the same year.
Near the end of the rush, in 2011, there were 64 sexual assaults. The violent crime rate was also 184.62 per
100,000 compared to the national average of 63.28 per 100,000 (Statistics Canada 2012). Although the numbers
have declined, the risk of sexual assault and violent crime in Yukon is still 2.9 times higher than the national
average. A difficulty in assessing globalisation’s impact on violent crime in Yukon is the face that many assaults go
unreported. As Yukon’s population continues to increase, from 33,100 to 36,100 between 2008 and 2012
according to Statistics Canada (2012), it will be telling to see if corresponding violent crime rates follow. If
prostitution does make a comeback, it is doubtful that the women will be as independent and well paid as they
were 110 years ago. Chances are they will be young women with addiction problems who are pimped out by
abusive men. If other resource based towns, such as Fort McMurray, are any indication, the situation does not
look promising for this role to be filled in a respectable, dignified manner.
There has been another style of crime that has emerged since the Klondike Gold Rush. In the modern
rush, there are no gold stashes or caches to raid. Instead, one can find an increase in white collar crime. Corporate
crime is more predominant than petty acts. For instance, as mentioned previously, the need to attract investors is
pushing some junior firms to interpret data liberally showing false positives in geophysical analysis. The open
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interpretation of data and statistics are allowing for what could be considered low-scale fraud. For those criminals
who still chose to partake in more traditional crimes, globalisation has brought roads to Whitehorse, Dawson and
Fairbanks. Airplanes have also made escape easier. The increases in white collar crime and a more accessible
territory are stretching the local authorities to the limit. The NWMP has evolved into the Royal Canadian Mounted
police (RCMP) and had 130 regular force members, 23 civilians, and 37 support staff working in M division, Yukon
in 2011 (Arnold et al. 3). This is not an abundance of resources to deal with maintaining order in a territory the
size of Spain that has a crime rate 3.46 times higher than the national average (Statistics Canada 2012).
13.3 First Nations
The impact of globalisation was felt by the Tr'ondëk Hwëch'in First Nation with the commencement of the
Klondike Gold Rush. Referring to Klondike City, just outside Dawson, Adney states that “[t]his ‘city’ was, until the
miners bringing rafts of logs down the Klondike destroyed their fish-weirs, the seat of the local Indians, or
Trochutin, as they call themselves” (177). Klondike City was transformed into “Lousetown”, the home of miner’s
squaws, half breed kids and dogs (177), eventually becoming the location of where the prostitutes settled. The
same situation occurred in Dawson and Moosehide. The influx of outsiders severely disrupted the daily life of the
local First Nations. Starvation, disease and loss of traditional territory rapidly occurred (Porsild 58). Not only was
their land taken over by new settlers, traditional hunting grounds suddenly became placer mines, and the
competition for their traditional resources, such as fish and moose, mushroomed overnight (58). Furthermore,
outside industrial culture was imposed on traditional hunter-gatherers. As well, First Nations communities had no
defense against new diseases and were “dying in alarming numbers” (Wilkie 30) from diphtheria, smallpox,
influenza and typhoid fever which hit them particularly hard (Porsild 46).
First Nations were also excluded from the new Klondike society and opportunities. They found no jobs,
encountered racism and, in the face of cultural differences, were labelled, for example, “[l]azy and dirty Indians”
(Porsild 57). Wage labour was a new system for them and their work often went underreported. First Nations
were also more concerned with seasonal subsistence and preferred life on the land (57). Porsild remarks that this
created a “pattern of segregation” (46) with their new neighbours that created less than favourable attitudes
towards them. Van Dijk’s techniques for CDA are beneficial when examining first hand accounts of the Klondike
Gold Rush. Studying the works of Adney, Hitchcock, Haskell, Leonard and Allen through a CDA lens reveals many
racist attitudes of the era. Writing in 1898, Haskell espouses some of these attitudes, judging First Nations to be
lazy, dirty, crooked and less than normal intelligence (221; 70-71). These attitudes were also reflected at the
Federal level as Government Officials were not to show any favourable treatment towards First Nations. They
were “not to be recognized in anyway which would lead them to believe that the government would do anything
for them as Indians” (Porsild 48). Often times, First Nation hierarchy and culture were not respected. In one of her
dealings with a First Nation Chief, Mary Hitchcock, also writing in 1898, failed to realize he was even Chief, and
even condemned him for his “haughty behaviour” (112).
Lack of respect is also reflected in historical accounts of the discovery that sparked the whole rush. There
are numerous accounts of what happened on that fateful August 16, 1896, when placer gold was discovered on
Rabbit Creek, (later to be re-named Bonanza). The most common accounts state that George Washington
Carmack discovered the gold. Other more enlightened versions mention Skookum Jim Mason and Dawson Charlie,
both Tagish Tlingit, as the discoverers. There is also the story of Kate Carmack, George’s Tlingit wife, discovering
the gold while doing dishes in a gold pan. No one knows for sure the sequence of events, but acknowledging that
it may have been a member of a First Nation who discovered gold is but a small start to reversing the trend of
ignoring First Nation stories from the Klondike Gold Rush.
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First Nations were not allowed to register claims during the Klondike Gold Rush, thus George Carmack had
to register the claims for himself, Skookum Jim and Dawson Charlie; however not for Kate because, as a First
Nation woman, she was denied any stake. The story of Kate Carmack is a tragic one and demonstrates some of the
th
injustices faced by First Nations in Yukon at the end of the 19 century. She was born Shaww Tlaa near Bennett
Lake in 1862 (McLaughlin). After being widowed and losing her first child to influenza, she became George
Carmack’s common law wife in 1887. Together, they spent the following six years prospecting creeks searching for
gold near the Klondike. In 1896, they were joined by Skookum Jim Mason, Patsy Henderson, and Dawson Charlie
who were actually sent as a search party for them. Once the gold was found, Kate had a hard adjustment dealing
with the new found richness and fame. George took the family outside to Seattle and Kate ended up getting
arrested for public mischief for doing a war dance in the hall of the hotel they were staying at while intoxicated
(McLaughlin). George sent her away and Kate eventually made her way back to Carcross, Yukon, by way of
California. It was here that she discovered George Carmack had married a Dawson City woman. As she and
George were only common law, her suit for alimony went nowhere. Had she been white, she would have received
a settlement of the sorts Kate Rockwell received from Alexander Pantages; anywhere from $5,000 to $60,000 for
breach of contract (Chalykoff 43). Contrarily, Kate received nothing from George and died a pauper in Carcross in
1920. Even when First Nations were capitalising on an opportunity during the Klondike Gold Rush, such as
woodcutting, they were soon pushed aside by unemployed white labourers who took over. This further relegated
First Nations to the margins of the economy (Morse 86). First Nation navigators and river-pilots that had intimate
knowledge of the Yukon River and were instrumental in guiding the first steamers were also driven out by whites
as the rush went on (82).
Enfranchisement was a method for First Nations to gain credibility in the eyes of mainstream society and
curb some of the racism they were facing. This method started in 1876 when the first Federal Indian Act gave
members of First Nations full rights of citizenship including property ownership, the ability to vote, and the ability
to receive professional training and education beyond high school (Dillman 101). However, to become
enfranchised, First Nation people were forced to give up their status as Indians (101). One such example was
Captain Frank Slim. He was of Southern Tuchone, Tagish and Tlingit descent and was one of the best riverboat
pilots in Yukon. In order to get his Captain’s papers and designation, he had to relinquish his Indian Status, causing
him much pain with which he sometimes turned to the bottle for solace (107-109).
How has globalization affected First Nations between the two rushes? Is discrimination still present? A
look at First Nations in the modern mining industry reveals that they appear to be one of the groups that have
undergone the most change since the Klondike, having gone from being outcasts to holding positions in the
administration and daily operations of the industry. The need to engage local First Nations regarding development
is now recognized in Yukon (Deloitte 25). Mining, and spin-offs such as environment, food and supply contracts,
are the largest employer of Aboriginal people in Canada, especially in the North (SCNR 14). This is witnessed in
Yukon as the globalized mining industry has helped the First Nations economically.
More importantly, First Nations have some control of their land. Lapointe notes that some “have gained
control over both surface and underground mineral rights in portions of their lands following agreements with the
government” (7). This is certainly the case for Yukon First Nations who have signed Self-Government Final
Agreements with the Territory under the Umbrella Final Agreement. On Category A settlement land, full mineral
rights belong to the First Nation (GOC 1993). This has allowed affected First Nations to negotiate Impact and
Benefit Agreements with mining companies who want to set-up operations on their settlement lands (Lapointe 12). Although there are still questions surrounding unsettled land, and now recently with the free entry system on
Crown Lands that comprise First Nation traditional territories, (Stano) prior developments have helped stabilize the
question of land use and access in Yukon.
26
With the positive investment environment, jobs have been created that are well paid. In the Minto mine,
these jobs are close to home. There are also royalties being given back to the First Nations communities that are
helping improve lives on the traditional territories. The Selkirk First Nation’s relationship with the Minto mine is a
perfect example of this. In the fall of 2010, they received $5.9 million in royalty payments for allowing the copper
mine to operate on their land (Ragsdale). This money was pegged to go towards helping fund programs for youth,
elders, and women, vastly improving all the lives involved. The role of traditional knowledge is also gaining favour
for mining companies. The global companies, with no local connections, are seeing benefits in liaising with people
who have inhabited the land for centuries (IWGMI 26).
As mentioned at the start of the paper, not all about globalisation is favourable. Waters thoughts on
developed versus developing societies are witnessed with Yukon’s First Nations. Yukon First Nations are still facing
barriers to participation. IWGMI reports that “inadequate access to education, a lack of experience in related
employment, and the fact that very few or no job applications were received from Aboriginal people” (9) are all
impediments to full participation. Participation may also be limited as there is some opposition to the global
mining industry from First Nations. Fear of further loss of territory and resources is prevalent, especially among
the three First Nations in Yukon who have not signed Final Agreements with the Yukon Government. The Kaska in
the Southeast Yukon have not yet settled and are threatening to close their traditional lands to new exploration as
a means to force the Yukon Government back to the negotiating table (Whitehorse Star Nov 19/12). Even on
settled land, such as in the Peel Watershed, there is uncertainty and tension as the Yukon Government finalises its
land use plans (CBC Nov 21). Within Federal legislation, there is a duty to consult any First Nations affected by
potential industrial developments (SCNR 12). These consultations involve socio-economic assessments and
potential impact studies. Duty to consult in Yukon is further entrenched in the YESSA legislation that governs
resource development and is embedded in the Final Agreements signed by First Nations throughout the territory.
Many First Nations are stating that there is a failure to adequately consult regarding new developments (59). In
Yukon, this is one of the main motivators behind participation in the “Idle No More” movement beginning in
November, 2012.
13.4 Women
As well, all Yukon women have been especially affected by globalisation. Most glaringly, women now
make up 49.1% of the population instead of the ten percent of the Klondike Gold Rush (YBS 2012). Porsild (87)
states that in 1898, women who travelled north to the Klondike faced a hard life. Neufeld and Habiluk agree,
noting that “[s]ingle women were sojourners in the North. Working in low paid jobs, most non-native women had
trouble finding and affording decent housing” (24). Many women participated in full-time waged labour with the
largest group working in the service sector (Porsild 20). Women entrepreneurs did exist and most owned
restaurants and lodging establishments. None were on the board of trade or held political office during the
Klondike Gold Rush (176). In fact, it was not until 1935 that a woman represented Yukon in Parliament when
Martha Black took the seat of her ill husband, George. Porsild remarks that during the Klondike Gold Rush “[i]n
both the small business and professional realms, women of all nationalities remained a small minority” (19). Only
one percent of Yukon miners were women and only three percent of claims were owned by women (84).
However, there were a number of women who came to the Klondike, registered claims and managed the
operations themselves. One such example is Martha Munger. She came to the Klondike over the Chilkoot in 1898
and managed her family’s two saw mills along with various mining interests in the region on Excelsior Creek (Black
25). She personally oversaw these interests, and at one point, had to engage a lawyer by the name of George
Black, (whom she would eventually marry), to quell a rebellion at her sawmill (61). Even though some women held
great amounts of power in the Klondike, this did not equate to respect. Strong women who ran their interests
were considered “battle axes” and “bitches”, evidenced by Martha’s experience in bringing her sawmill back in
27
line. With globalisation, the businesswoman's role has morphed in its expression from Martha Black to that of
corporate professional. Geologists for major mining companies and government administrators enforcing current
legislation exemplify this. During the Klondike Gold Rush, government administration was performed by men - at
first the NWMP which was, except for Kate Ryan, an entirely male organization. Fast forward one hundred and ten
years and witness a well-established bureaucracy in Yukon. Dealing with the miners directly there are geological
surveys, mining recorders, librarians, policy-makers, environmental assessment boards, and mining inspectors. In
contrast to positions during the Klondike Gold Rush, the majority of these positions are now staffed by women.
These are administrative positions, however. They do not make major decisions but only enforce them. What
about higher positions of power and responsibility in the globalized world?
In order to answer that question, it is helpful to look at the composition of the upper management teams and
Board of Directors of the corporations involved in the recent mineral rush in Yukon and those of the companies
with operating mines. A quick survey of the websites for ten of the major players in Yukon reveals:
-Alexco Resources has no women on its Board of Directors or its Management team of a possible 13 positions
(Alexco);
-ATAC Resources has one woman, Vanessa Pickering, Manager of Corporate Communications, out of 11 positions
(ATAC);
-Capstone Mining has Jay Grewal as Senior Vice-President, Strategy and Stakeholder Affairs and Cindy Burnett,
Vice-President, Investor Relations and Communications on its Management Team and Chantal Gosselin as a
Director, three out of 16 positions (Capstone);
-Golden Predator (now Americas Bullion Royalty Corp) has two women, Janet Lee-Sheriff, Vice-President,
Communications and First Nations Relations and Nancy La Couvee, Corporate Secretary on their Management
Team and no women on their Board of Directors. Two of a possible 13 positions are filled by women (Golden
Predator Corp);
-Kaminak Gold Corporation has one woman, Pamela Strand, of six on the advisory board and none on their
management team of eleven (Kaminak Gold Corporation);
-Kinross has one female director on their board of nine. Catherine McLeod-Seltzer is the Chairwoman of Pacific
Rim Mining Corporation. Kinross also has one woman on their Senior Leadership team of six, Lisa Colnett who is
the Senior Vice-President of Human Resources and Corporate Services (Kinross Gold Corporation);
-Northern Tiger has two women Directors, Lori Walton and Pamela Strand, on their board of seven (Northern
Tiger Resources);
- Ryan Gold Corp has no women in nine possible positions (Ryan Gold Corp);
-Victoria Gold Corp has one woman on their management team of six, Kelly Arychuk, Vice-President, Mine Support
Services and no women on their Board of Directors of six (Victoria Gold Corp);
-Yukon Zinc has one woman, Ying Wang as Vice Chairman of seven directors, who are all incidentally Chinese. On
their management team, four of seven are women: Nancy Yuan, General Manager of Marketing and Sales; Fiona
Shou, Controller; Barbera Womersley, Human Resources Manager; and Crystal Zhang, General Manager of
Corporate Communications and Administration (Yukon Zinc).
28
That totals 17 women out of 127 possible positions, equating to 13 percent. Even that 13 percent is
deceiving. Out of the 17 positions filled, there are only five positions of consequence. The other 12 positions are
general directors, human resource, administration and corporate communications based. Not that those positions
are not important, but a CFO has much more influence on the direction of the company than an HR specialist.
When factoring the position of the women involved, the active engagement of women in the upper levels of the
companies surveyed becomes a minuscule four percent. A further analysis can be made by looking at how many of
the 10 companies above have a woman as their Qualified Person. A Qualified Person (QP) in the mining industry is
the person who signs off on all technical information released about the company in accordance with National
Instrument 43-101. This instrument is a safeguard against fraudulent claims such as those of the Bre-X
Corporation in the late 1990s. As such, they have the legal liability that the information is correct, an immense
amount of responsibility and decision making. In the above 10 companies, there are zero female QPs. This
absence of women can also be seen in many of the exploration crews who are on the ground doing the soil
sampling. When it comes to field crews, few women are hired. The most common reason for the exclusion is that
women cannot handle the physical rigors of fieldwork and camp life. This sounds remarkably similar to the notion
held of women in the Victorian era that they are delicate flowers.
The above survey included corporations in the private sector. Are the same results found in the public
sector? The public sector has undergone more than twenty years of affirmative action. Has this balanced out the
composition of the departments dealing with mining? Also, do women hold any positions of responsibility or are
they similar to the token appointments seen in the private sector? As mentioned above, the majority of
administrative public sector positions are held by women now, contrasting with the Klondike Gold Rush.
Professionally, the Yukon Geological Survey (YGS) employs 19 Geologists. Of these, eight are women, or 42
percent. This looks promising. However, when looking at the upper management of YGS, two of five positions are
headed by women; those of technical services and finance/operations. Both of these are on the less scientific side
and have little to do with the actual decision making of the Survey. On the bright side, the director of the
organization is a woman. However, above her are the Assistant Deputy Minister, Deputy Minister, Minister of
Energy, Mines and Resources, and Territorial Premier - all male. There is only one woman in nine Ministerial
positions in the Yukon Territorial Legislative Assembly, the Honourable Elaine Taylor, responsible for Community
Services, the Public Service Commission, the Women’s Directorate and the French Language Services Directorate,
all of which are culturally and socially focused as opposed to finance and hard policy. Overall, one can see that the
public sector is more woman friendly, but women are still limited in the responsibility they are given. They are
mostly in administrative roles, contrasting with the decision-making power of women in the mining industry during
the Klondike Gold Rush. In 1898, women owned mining operations and made the management decisions. In that
era, there were ten men to every woman. Now, the ratio is close to one to one. As such, the mining industry
should be reflecting a thirty percent participation rate for women in decisive positions for women to have
remained as respected and engaged as they were in the Klondike Gold Rush. This is not the case. Although
women’s image in society is better, there is more respect from Women’s Liberation and work opportunities are
somewhat better, women are still limited, especially in the resource industry. Little states that the “[w]orkplace of
global resource industry is a masculine world that concentrates wealth in male hands” (33). Many opportunities
are not available to women as they require long distance commuting, (not possible as a mother), and breaking
through male domination, an exhausting feat as “[m]any large scale industrial development that follows global
mining industry trends will compound decades of power inequalities and the race and gender issues that underlie
the uneven circulation of power” (85).
Motherhood has also been affected by globalization in the mining industry. There are many mothers now
who are in the workforce. During the Klondike Gold Rush, women were generally homemakers and mothers and
29
not employed outside the home. Today, both parents are employed outside the home as the cost of living has
increased and the social stigma of being a working mother has decreased. This results in many latch-key children
who come home to empty houses at the end of the day.
Another interesting aspect to examine is how many women are the bread-winners of their families.
During the Klondike Gold Rush, the married women and mothers who were working were often doing it as a hobby
or side project. The husbands, with a few exceptions, were the ones bringing home the higher incomes. Today, if
a woman can get a higher level position in Yukon’s mining industry, they are the ones earning higher incomes than
their partners. Directors and executives commonly earn in excess of $100,000 per year. If these women consult
on the side, this number increases accordingly. Being the bread-winner in the mining industry as a married woman
and/or mother is a relatively new development that has also allowed for traditional roles in families to be redefined. This development is not unique to the mining industry, however. In many sectors, stay-at-home dads are
found and traditional roles have flipped creating new dynamics and power relations that did not exist during the
Klondike Gold Rush. This has been brought about by the global economy of scale and its greater opportunities for
women.
The creation of an artificial existence based on spouses working in camps far from home on a rotational
schedule is another consequence for Yukon women. Furthermore, “[n]orthern women live with the ever-present
threat of violence and abuse…” (Little 57). Domestic abuse in communities close to camps and in families where
tension is created by the mining industry is common. Wives and mothers do not have the luxury of having
"normal" family lives. Half of the parental unit is missing a good portion of the time. While it is true that the same
occurred for the initial parts of the Klondike Gold Rush, the wives and mothers affected by gold fever then had the
hope of eventually joining their men where they worked. The reliance on temporary camps has eliminated that
hope for modern mining wives and mothers.
Culturally, as in many other locations affected by globalisation, Yukon women are worse-off now than in
the Klondike Gold Rush, especially First Nation women. Their culture has been eroded with the imposition of an
industrialised economy. This economy has also brought with it foreign male workers with different cultural values
and attitudes towards women who may not be aware of local customs and protocols further complicating matters.
Indigenous and local voices are now uniting. Nuttall notes that “[o]ne response to the consequence of
globalisation for indigenous cultures is to reassert and express the distinctiveness of local identities” (152). At the
moment, the aforementioned First Nation Idle No More movement is active in Yukon reasserting Final Agreement
Rights in hopes of retaining their land and culture in the face of industrialisation.
13.5 Environment
Adney mentions of the Klondike Gold Rush that “[n]othing but flood and fire is so ruthless as the miner”
(404). Miners of the Klondike era did not give environmental consideration a second thought. Morse states that
“[t]o get at gold in all of these places, miners took the whole ecosystem apart. The work of gold mining was the
work of disassembly, and it left the creeks truly in pieces” (91). She continues to explain that “[a]long many creeks,
the first step was to start a forest fire. Thawing required dry wood, so miners heedlessly set fires in nearby forests
to burn off branches, and dry and blacken trees for easy harvest and use” (95). To mine, there was also a heavy
reliance on water (Isenberg 125). The interconnectedness of the environment was often ignored in pursuit of gold.
Morse remarks that “[w]hen miners altered one element of the system, such as flowing water, that water often
reappeared in frustrating ways and disappeared just when it was needed” (92). Sediment flowing downstream
from the diggings also created problems for aquatic life and natural drainage patterns (Isenberg 129). This was
30
evidenced in the Klondike Gold Rush as salmon habitat and forests were destroyed as drainage systems were
altered with the diversion of water from the Tombstone Mountains.
In the modern era, the environment is being given more consideration. Sustainable development is
gaining favour including environmental protection, economic growth and social equity (Stevens 257). Currently,
the average Canadian metal mine rejects 42 percent of material as waste-rock immediately, a further 52 percent as
mill tailings, and an additional four percent as smelter slag. Ore of any value that is mined is only two percent of
the total (Bridge 211). Dust, acid rock drainage, contaminants, radioactive by products and the loss of ecological
function at the mine site have all emerged as modern environmental concerns (SCNR 28). This spectrum of
environmental concerns is very broad as it now includes sustainable development, cultural preservation and postmining land use (Bridge 206-207). Regulation and permitting are in place in most jurisdictions to preserve the preindustrial conditions and to ensure the health and safety aspect of sustainable development. Violations of these
regulations are being monitored more closely than ever. In Yukon, a recent example is Tagish Lake Gold Corp,
(taken over by Chinese interests in 2010), who had health and safety violations on its Wheaton Valley property
resulting in stop-work orders (CBC News July 31, 2012). Reclamation and closure must also be factored in to new
mine proposals. Mining companies must have clear plans before work is allowed to commence that must be
updated every two years and re-submitted to the Yukon government. Costs and financial security are adjusted
based on the updated plan and the entire amount has to be available at all times so that closure can be
implemented if need be (FTT3 2). The Wolverine Mine exemplifies this new thinking. The closure and reclamation
plan proposes that once mining is complete, all surface infrastructures, except for the tailings facility will be
decommissioned over a three year period to allow the site to return to a self-sustaining ecosystem (FTT3 3).
Why the change of heart towards the environment by Yukon’s mineral industry? Globalisation is a big
reason. Just as corporations have globalised, so have the non-governmental organisations (NGOs) who monitor
their activities. These NGOs are based initially on social movements. These movements are fluid and large,
evolving and transforming, and they lack permanent institutional structure thus they are very mobile, malleable
and responsive (O’Brien et al. 15). Social movements have been around for centuries. Older social movements
were class based whereas the new ones are based on gender, race, peace, and the environment (17). Dirlik (11)
states that some of the consequences of global neo-liberalism are decreases in social justice and welfare
motivating modern social movements. Webster et al. agree “[a]s individuals rediscover their essential worth, their
dignity and their inherent value, their sense of anger at the injustice of commodity status is magnified. Such anger
is the motor of collective action” (203). Social Movements generate empowerment, creativity and determination
to resist (9). “International NGOs like Amnesty International or Greenpeace represent millions” (Steger 69) and
their influence is profound. O’Brien et al. note that “[t]hey are anti-systemic…working to forward priorities at odds
with the existing organisation of the system” (12). In order to do so, Webster et al. (195) mention social
movements have turned to cyberspace enabling truly global connections and mass mobilization. Multilateral
Economic Institutions (MEIs) and corporations have recognised the influence of NGOs and have engaged in a
process of complex multi-lateralism to achieve mutually beneficial outcomes to activity. This relationship is
important for vulnerable sectors of global society as it gives them a voice; or at least the illusion of one (O’Brien et
al. 21). Complex multi-lateralism is increasing as more and more people are becoming aware of globalisation’s
effects. Reasons for this rise in interaction between MEIs and NGOs include the liberalization of economies, the
innovations in Information Technology, the creation of new centres of authority, the instability created in the
global finance system, and changes in ideology that have occurred (7). It must be noted that NGOs can be doublesided swords. Quite often, they can be co-opted by groups with plenty of financial resources and ulterior motives.
A recent example of this can be found in Vivian Krause’s work detailing the financing behind Tides Canada in their
fight to block the Northern Gateway Pipeline in northern British Columbia. Krause (2010) postulates that it is
31
American oil interests wanting to preserve Canadian oil for themselves who are funding the anti-pipeline campaign
as a way to block Canadian access to the Asian oil market. It will be interesting to see if Krause tries to uncover
who is behind the funding for CPAWS and their fight against resource development in Yukon’s Peel Watershed and
what she may find.
14. Conclusions
From this study, a number of facets and theories of globalisation can be witnessed. Waters’ theory on
globalisation’s division of labour that creates core and peripheral societies is witnessed in Yukon. First Nations
settlements and the communities in Yukon are less well off than the capital of Whitehorse and destinations further
south. Furthermore, the majority of mining companies operating in Yukon are headquartered outside the
territory. This means that any profits and resource revenues go with them with marginal benefits to the
surrounding communities. This is where Bauman’s allusion to an absentee landlord is witnessed, as well. Not only
are profits taken out, but consequences in the form of environmental disasters are left behind. One does not have
to look any further than the list of Type II abandoned mine sites in the territory waiting to be remediated by the
federal government to see how companies in the past have neglected their stewardship duties once their mines
were no longer profitable.
Kiely’s reference to market dominance is well at work in Yukon when looking at the type of economy
present. With the industrial economy taking hold as mining and exploration have increased, traditional
subsistence economies have been replaced. This new economy is based on late capitalism and comprised of what
Marx refers to as the Bourgeoisie; those who are fortunate enough to have capital mobility and the ability to chase
profits around the globe. This is visible in Yukon by the amount of foreign mining companies at work, most notably
Chinese. The emergence of Chinese investment dollars in Yukon confirms Glyn’s research on China’s need for raw
materials. The need for these materials fills the demand created by the consumer society that Bauman proposes.
Sovereignty issues brought on by globalisation are also evidenced in Yukon. Deleuse and Guattari
mention that capitalism has created deterritorialization where borders and sovereignty no longer exist having
been replaced by multi-national corporate laws and treaties benefitting entities searching for maximum worldwide
profit. Kiely echoes this theory which is witnessed as The Harper Government is currently in negotiations with
China to pass FIPA which will erode some of Canada’s regulatory power when it comes to Chinese investment
dollars. One can be sure this will affect Yukon’s mining industry with the amount of Chinese dollars already active.
Also, the inevitable opening of the Northwest Passage will continue to create sovereignty issues for the territory,
although a deep water port for export on the arctic coastline may also be beneficial. Time will tell. These
developments are on top of Bills C-38 and C-45 that have recently been passed opening the door to greater
resource development in Canada.
Baudrilard mentions simulation as being a defining factor in modern life as a response to globalisation.
The modern mining economy that is at play in Yukon is a prime example. Investments are made based on
speculations and best guesses. They are promoted much as boosters of the 1898 gold rush boosted the bounty of
the Klondike creeks. The new rush is also heavily based on the stock market with little tangible assets, but rather
numbers on a computer screen, changing hands at light speed. The entire system allows for what Agnew refers to
as flexible accumulation brought on by time-space compression. Gleick and Bauman explain that as technology in
all areas of life has increased time and space cease to matter for they have become an obstacle that can be
overcome in an instant, shrinking the globe. This is most certainly witnessed in Yukon in the modern mineral
exploration techniques, the modern mining investment game, and the velocity of exploration, not to mention the
revolutions in transportation that allow for commuter mining. This new culture of commuter mining has its own
32
effects on Yukon. The sense of community seen in the Klondike Gold Rush no longer exists as the workers in the
recent exploration rush and the mines that have come online in the last five years have no vested interest in the
towns near or where they work. They fly in, do their rotation and fly out taking their paycheques with them living
a simulated and altered artificial existence. Increased crimes rates, domestic abuse, and a negative effect on the
quality of life of mothers, women, First Nations and the environment have also arisen out of the simulated society
Baudrillard proposes.
Being part of the circumpolar north allows Yukon to confirm the theories of globalisation promoted by
Heininen and Southcott, specifically those pertaining to the exploitation of the north in favour of the larger nation
at whole. As mentioned, revenues in the form of resources are removed, but not replaced and recent legislation
has been passed allowing for further exploitation creating boom/bust economic cycles. This is witnessed yet again
in Yukon as the exploration industry has nose dived since a record year in 2011. The absence of new claims staked
in 2013 gives evidence to this. Heininen and Southcott mention that climate, economic, and military changes are
magnified in the arctic due to a fragile landscape and fragile cultures which are vulnerable. Grant corroborates the
environmental impacts and provides and example of an Alaskan Eskimo settlement that has had to re-locate due
to climate change.
Cronen illustrates that globalisation is not a one-way street in the north. Decisions have been made to
import goods and services since the beginning of industrialisation in the region. Southcott notes that railways
were one of the first imports connecting the area to the vast industrial economy of the south. The WP & YR
railway in Yukon, finished in 1901, provides evidence of this. Due to the connections that have come with
globalisation, prices in the region have come down and accessibility has increased creating a better quality of life
for modern Yukoners compared to those of the Klondike Gold Rush. Kiely also proposes benefits to globalisation in
the circumpolar north as the region has resources and the ability to get them to market as their comparative
advantage. Bridge and Warhurst also see the benefits of capacity building and sustainable practices as being
brought on by globalisation. This is witnessed in Yukon as the minerals industry has helped establish mine training
programs at Yukon College which focus on more sustainable mining practices.
th
Ellwood mentions that the globalisation affecting Yukon had its roots laid by Columbus in the late 15
century. It is certainly not a new concept to Yukon or the Klondike. Without exterior investment and globalisation,
Dawson would never have existed in the first place as a stable settlement. The current globalisation of Yukon is
just a progression of mining and globalisation in general. Around the mining world, placer districts have evolved
into hard rock districts. As placer reserves depleted, mining became more complex which increased the need for
capital and thus further integration into the world economy, as Stevens points out. This extension and
globalisation is only bound to further increase in Yukon. Mines on the horizon include Victoria Gold Corporation’s
Eagle deposit, Americas Bullion Royalty Corporation’s Brewery Creek deposits, Chihong Canada’s Selwyn deposits
and ATAC’s Rackla district. All four of these companies have foreign interests.
Globalised mining economies do come with perks. Bridges calls the natural resource sector an “engine of
growth” (44). Currently, hard rock mining employs ~930 people plus all the associated services in Yukon (YMAB 2).
Community wellbeing can also be enhanced (Riabova 142) as evidenced by Minto Mine royalties to the Selkirk First
Nation (Ragsdale). With these perks come consequences. Globalised mining economies are cyclical and at the
mercy of world financial markets seen by the exponential drop in exploration activity between 2011 and 2012 in
Yukon. There are also limited opportunities dependent on finite resources. Skewed income distributions are
common as well as poor financial planning, decreased revenue retention, and under-investment in institutional
and social capacities (Bridges 44). Modernization has decreased the number of mining jobs, and there is a lack of
local ownership and decision-making as outside influences determine the course of development. Fly-in camps
33
and the commuter mining lifestyle also create high turnover rates resulting in instability (SCNR 15-16).
Additionally, resource based economies are known for underperformance. Bridge (44) notes that revenues for
resources go into a state’s general fund, which is problematic as they are non-recurring and in many cases are not
managed accordingly. Dutch Disease, where there is an inverse relationship between extensive mineral
endowments and strong economic growth (Webster et al. 44) is a very real threat to Yukon. States become far too
reliant on finite revenues and do not diversify their economies to achieve maximum performance as a result. It
will be up to Yukon Government to ensure that future royalties are managed prudently in order to avoid having
Dutch Disease strike the territory.
Although there have been numerous changes brought about by globalisation in the Klondike and Yukon
between 1898 and today, the economic and social ones are not unique to the area. Globalisation has affected all
four corners of the globe, even closed off states such as Bhutan (Larmer 7). Mining has become a massive global
industry and is a major contributor to many of the world’s top producing economies. Its entrance into local
economies has created positive job opportunities and generated wealth while making strides in becoming more
environmentally friendly. These positive spin-offs have not come without costs. As globalised mining companies
enter territories, cultures are eroded and impacts on First Nations, women and the environment occur, as
witnessed in Yukon. It must be noted that not all the changes are negative, though, as attitudes towards and
opportunities for both First Nations and women have improved between both rushes. Regardless of the
differences brought on by globalisation between both rushes, one thing has remained the same: success still relies
heavily on luck and chance.
34
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