III.

Economic Activities

Although there was some farming around the turn of the century, when prospectors swelled the Yukon’s population, there are now only a handful of farms in the territory. Farming is hampered by the limited amount of arable land (about 200,000 hectares/494,000 acres), the light summer rainfall, the short frost-free season, and the small domestic market. Potatoes and crops for farm animals are grown for the local market, and a few chickens, cattle, horses, and pigs are raised.

Mining is the Yukon’s most important source of income. For a long time, gold was the leading mineral by value. Gold was first found in the Yukon about 1869, but the Klondike discovery of 1896 caused the now legendary gold rush of 1897 and 1898. Peak production was reached in 1903, when gold valued at C(Canadian)$63.5 million was recovered from the creeks around Dawson. Large-scale dredging for gold began in 1905 and continued until the last gold dredge closed in 1966.

By the early 1950s the value of gold production had been surpassed by that of silver and the base metals—zinc, lead, and copper—largely as a result of the success of the Mayo area as a source of high-grade ores of silver, lead, and zinc. When the price of gold rose sharply in the 1970s, new Klondike gold rushes occurred, and new claims were staked on ground that had previously been worked over.

From the end of World War II in 1945 to the early 1980s, zinc, lead, and copper were the Yukon’s most important mineral products. Zinc and lead were produced in the area around Faro and near Mayo; copper was mined at Watson Lake and south of Whitehorse. In the early 1980s depressed world markets and increased production and transportation costs led to sharp cutbacks in mining operations and the closure of many mines. The closure of the Faro lead-zinc mine in 1982 resulted in a serious economic crisis in the territory. Zinc and lead mining was resumed on a commercial scale in 1986 and rebounded to previous levels in the late 1980s. Copper mining, however, remained economically unviable.

In 1998 the total mineral output was valued at C$134.1 million. Gold accounted for about three-fifths of the total, zinc and lead for about one-quarter.

Tourism is the second most important private sector industry in the Yukon. Visitors come to fish, hunt, enjoy the rugged scenery, and see the historic buildings and creeks associated with the gold rush.

Some marten, lynx, muskrat, wolverine, and other fur-bearing animals are still trapped, but the Yukon plays a minor role in Canadian fur production.

The Yukon’s manufacturing industries consist almost exclusively of some mineral refining, printing, and sawmilling. Several hydroelectric plants generate adequate power for these operations, and the Yukon’s rivers have enormous additional power potential.

The most important transportation artery in the territory is the Alaska Highway, which runs for 1,014 km (630 mi) through the Yukon. The Klondike Highway connects Whitehorse and Dawson, with spurs to major mining centers such as Mayo, Keno, and Elsa. The Robert Campbell Highway forms an arc of 602 km (374 mi) from the Alaska Highway east of Whitehorse to the Klondike Highway north of the capital. The Dempster Highway extends for 663 km (412 mi) from the vicinity of Dawson to Inuvik, on the Mackenzie Delta in the Northwest Territories.

Air service is especially vital to those parts of the territory without access to roads, and about ten airports operate in the territory. There is jet air service connecting Whitehorse with Vancouver and Edmonton in Canada, and Anchorage, Fairbanks, and Juneau in Alaska. Internal air service links Whitehorse with Dawson, Mayo, Clinton Creek, and Old Crow.