Cape Breton Development Corporation

The Cape Breton Development Corporation, or DEVCO, was a Canadian federal government Crown corporation. It ceased operation on December 31, 2009, after being amalgamated with Enterprise Cape Breton Corporation (ECBC).

DEVCO was organized primarily into two divisions: a community economic development organization, and the coal division.

From March 30, 1968, until November 23, 2001, DEVCO's coal division operated Canada's largest underground coal mines, located in eastern Cape Breton County, Nova Scotia. Following decommissioning of its mines, DEVCO sold all non-mining surface assets to the private sector on December 18, 2001, including the Devco Railway and is now remediating its mine sites.

In 1965, the Dominion Steel and Coal Corporation, or DOSCO (then a subsidiary of the Hawker-Siddley Group) announced that its mines had only 15 years of production left and concluded that the expense of opening new underground mines in the Sydney Coal Field would be too expensive. The company made its intentions clear that it would be exiting the coal mining business within months.

In response to a vast public outcry in industrial Cape Breton County, the minority government of Prime Minister Lester Pearson announced J.R. Donald would head a Royal Commission of Inquiry into the Cape Breton coal industry, with hearings held in 1965 and 1966. The Donald Commission recommended that a federal Crown corporation be established to acquire and manage DOSCO's coal operations, with the aim being to slowly wean the Sydney area economy off the coal industry.

On July 7, 1967, the Cape Breton Development Corporation, or DEVCO, was established to operate the mines in the interim, while phasing them out throughout the 1970s and, at the same time, develop new economic opportunities for the surrounding communities. On March 30, 1968, DEVCO expropriated DOSCO's coal mines and the Sydney and Louisburg Railway, settling for a payment of $12 million. At the same time, the Government of Nova Scotia took over the operation of DOSCO's integrated steel mill in Sydney, renaming the operation Sydney Steel Corporation, or SYSCO.

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