ABSTRACT

International commodity prices and reliance on a single mining staple are the main reasons why the economy of a mining town does not diversify adequately. Very little literature has been dedicated specifically to the business sector in these towns. The authors compiled a profile of the town’s businesses and of their current views on the business environment. In accordance with staples theory, the Dutch disease and the resource curse, the business sector has reaped short-term gains from the construction of the mine. It, however, faces the long-term consequences of a volatile economy that has even less sectoral diversity than before.