In the early 1890s, the population peaked at over 5,000, larger than Nanaimo at the time. By the late 1890s, the mines were nearly exhausted, and mining activity had shifted to
Extension.
Wellington Coalmine In partnership with Royal Navy Lieutenant Wadham Nestor Diggle, Dunsmuir received a mining lease in 1871 for an area south of Long Lake, defined by boundaries from its shores of westward, eastward, and southward. In 1872, the two principals, with junior partners, obtained a Crown grant of land largely covering the mining lease, but with the northern boundary extended to capture the north shore of Long Lake. The partners established Dunsmuir, Diggle & Company and developed the Wellington Collieries. Mining commenced west of Diver Lake. In 1877, labour disputes led to violent confrontations between strikers and strikebreakers. The BC government declared
martial law sending in troops to restore order. The next year, sabotage on a tramway caused the horrific death of a Chinese employee. In 1879, 11 miners died in an explosion of coal dust or by inhaling the resulting toxic gases. Around this time, Dunsmuir bought out two of his partners. The next year, 75 died in another explosion. In 1883, Dunsmuir bought out Diggle, the remaining partner.
Railways By 1873, the company replaced the wagon road with a horse-drawn wooden tramway, superseded the next year by a wide
narrow gauge railway to cover the to the company wharf at the northwest corner of
Departure Bay, from where company
steamboats transported the coal to
San Francisco. At the lower elevation, a long loop in the line was needed to create an acceptable gradient. Dunsmuir established the
E&N Railway (E&N) that opened
Victoria–Nanaimo in 1886. The next year, the E&N extended northwest to Diver Lake.
Townsites The initial town developed north of Diver Lake, along the crest of today's Jingle Pot Road. The current
Nanaimo-Ladysmith School District Island ConnectEd buildings occupy the property upon which the first
Wellington school opened in 1875. or 1881,
Railway A narrow gauge railway ran to the company wharf at the southeast corner of Departure Bay. The circuitous track largely covered level ground.
Townsite & farm By the early 1880s, about 50 houses existed, but the community infrastructure was at Wellington proper. The farm provided feed for the horses and mules used to haul ore cars at the mine site.
South toward east Dunsmuir operated No. 3 1880–1899. Connected by a tunnel, No.4 operated 1881–1897, and was used for ventilation and transporting coal. An 1885 explosion in No. 4 killed four miners.
East Wellington Coalmine Starting in 1864, members of the Westwood family homesteaded several parcels totaling between Nanaimo and Wellington. In 1882, Richard Devonshire Chandler acquired the properties (which included subsurface rights), and formed the East Wellington Coal Company. The mine was near today's Maxey Rd/East Wellington Rd intersection. The company built a narrow gauge railway to Departure Bay. Development work was carried out, and significant quantities of coal were produced, but results were comparatively mixed. In 1893 the mine flooded and closed, and the next year the assets were acquired by [James] Dunsmuir, but little further production ensued.
Present community The area is largely small rural holdings. The volunteer fire department occupies a modern building.
West Wellington Adjacent to Dunsmuir's western boundary, Dennis Jordan of San Francisco, revived some prior work in 1895. Lacking economical transportation, the West Wellington Coal Company operation folded after a few years. In 1907, the Gilfillan Colliery acquired the coal rights, but shuttered the next year. In 1928, the Little Ash Mine ran a small operation for a few years.
North Wellington In 1925, Island Collieries, owned by King & Foster Co., opened a small operation, which Canadian Collieries acquired in 1927. Renamed Wellington Extension No. 9, the mine operated intermittently until closing in 1932. ==Later community overview==