Series consists of records relating to the administration of the Emergency Gold Mining Assistance Act.
This includes subject files dealing with matters such as the regulations and amendments to the original Act, reports and analyses of problems faced by the gold mining industry, general summary reports, field inspection reports and gold production statistics. Additionally, volume 34 consists of a record of payments made to gold mine operators.
Under the Emergency Gold Mining Assistance Act, which came into force in 1948 (RSC 1970, c.E-5), financial assistance was provided to marginal gold mines to reduce the effects of increasing costs of production coupled with a fixed price of gold. By enabling gold mines to extend their productive life, the subventions assisted communities dependent on gold mining to adjust gradually to diminishing economic support.
With the removal of the fixed price of gold in 1971, higher prices made it more profitable for gold mine operators to sell their gold on the open market than to sell it to the Royal Canadian Mint, which was necessary to be eligible for assistance payments. No applications for assistance under the Act were received on gold produced after 31 December 1971. Consequently, the Assistance Act was not extended beyond 30 June 1976.
The administration of the Act was conducted in the Mineral Resources Division (later the Mineral Resources Branch) under the direction of the Director, Mines, Forests, and Scientific Services Branch (1949) the Director General of Scientific Services (1950-1956) the Deputy Minister (1957-1962, 1964) the Assistant Deputy Minister - Research (1963) the Assistant Deputy Minister - Mines (1965-1961) the Assistant Deputy Minister - Mineral Development (1967-1970). Gold mines receiving assistance were visited by inspection engineers who carried out field inspections required to insure observance of the regulations relating to allowable exploration and development expenditures. The Audit Services Branch, Office of the Comptroller of the Treasury conducted an annual audit of the books of account of each mine to verify the applications. The applications were then reviewed and approved by the Department of Energy, Mines and Resources (and its predecessors) and payment was made by the Chief Treasury Officer of the Department. The amount of assistance payable to an operator was determined by a formula and was based on the average cost of production per ounce and the number of ounces produced.