The closure of the mines in 1982 and Law 67 in 1986 plunged Schefferville into a major crisis, but the communities resisted and refused to abandon.
November 1982, the IOC announced the final closure of mining operations at Schefferville, and transferred all its assets to Labrador. The news provoked a panic, massive exodus followed and the population drastically went down to approximately 1,170 people, including the Naskapis, the Innus, and 250 Caucasians mostly native of the place, all believing in the future of the North.
In spring 1986 came the Law 67; decreeing the closure of the town, thus destroying all efforts to maintain services. The tourism industry suffered several cancellations. The situation went from bad to worse with: the closing of the Health center; the depreciation to a third of all business, and other buildings; taxes were doubled and tripled, etc. Following is a chart showing the kind of incoherent numbers that were used for calculating the expropriation compensations.
A great lack of respect was shown towards the First Nations; as where Chief Alexandre McKenzie had to ask “Should we have to walk from Schefferville to Ottawa…”, concerning the demands for Matimekush expansion; and where Chief Joe Guanish emphasized the importance of maintaining services while his community had moved to Kawawa. The 1980s and 1990s were full of human tragedies, suicides, bankruptcies, including the great demolition where Schefferville lost ¾ of all its infrastructures.
Thanks to the perseverance of the First Nations and of 2 businessmen, Gilles Porlier and late Albert Fortier, this small town stayed on the map with new infrastructures for future generations; what those people accomplished is worth mentioning! Since 2012, the sustainability of mining operations is ensured by Tata Steel Minerals Canada Company in partnership with the First Nations communities, Innu and Naskapi.