Malagash Salt Miners' Museum
Malagash, Nova Scotia

Gallery Thumbnail Gallery Stories Contact Us Search
 

The First Rock Salt Mine in Canada

 

 

THE HISTORY OF THE SALT MINE IN MALAGASH

In 1924 when the partnership of Chambers and MacKay was dissolved as such, they formed Malagash Salt Products Ltd. In 1927 the firm was re-organized as the Malagash Salt Company Ltd., with an authorized capital of 10,000 no par value common shares. It was at this time that the Imperial Chemical Corporation of Great Britain invested $50,000 into the venture in an endeavour to find a workable deposit of potash, which was unfulfilled.

Malagash Salt affords a case history of success attained through perseverance. Deficit followed deficit, and 22 years were to pass before the directors had the gratification of issuing a statement to sharehollders that showed a reasonable profit. At one stage of the company's operation, a majority of the directors wanted to cease operating and wind up the company. MacKay and Chambers held out to continue, and personally borrowed $50,000 from the Bank of Nova Scotia to purchase an equivalent sum to face value of Malagash Salt Bonds.

In the early thirty's the company was often without funds to meet its payroll of over 80 men plus office staff.

The company was reorganized in 1948. Control of the company left New Glasgow in 1951, when the Canadian Salt Company bought, on the open market, all of the common stock. The new owners continued to operate Malagash Salt Company Ltd., as a subsidiary and paid its preferred stock interest regularly.

The deposit at Malagash being nearly exhausted, a new mine was laid out at Pugwash, and shaft sinking began in 1954. The old mine, after 41 years and a production of approximately 2 million tons, was abdoned in March 1959. The new mine at Pugwash went into production in the fall of 1959.

(Taken from the book 'Malagash Salt', first published in 1975)

 

Print Page

Important Notices  
© 2024 All Rights Reserved