“Gold!” The cry once echoed around Minas de Maria Isabel. Mining in Portugal has a long history. It stretches back to pre-Roman times. Back then, this region was known as Lusitania.
The Romans were keen on gold. Portugal remains a significant European producer of copper and minerals. Tin, tungsten, and uranium are also found here. Sadly, Portugal lacks iron, aluminum, or coal.
The most famous mines in Portugal are Neves-Corvo, Panasqueira, and Mua. But let’s not forget Minas de Maria Isabel. The Portuguese Ministry of Economy regulates mining. INETI is the state-run research institute. It oversees geology and energy resources.
Portugal’s industrial history is unique. For a long time, it was isolated in Europe. Its location on the western edge of the continent played a role. Policies favored colonies over neighboring nations. The Portuguese built a global network of trading bases by the 15th century.
In the 17th century, competition grew too fierce. Portugal focused on Brazil. Brazil was rich in raw materials. This had long-term consequences. When gold and diamonds from South America declined, the domestic economy suffered.
The Marquis de Pombal tried to fix this in the 18th century. He created a commercial college. He limited the power of nobles and the church. The Royal Silk Manufactory was founded in 1758. Private glass and iron businesses followed. Wool factories also appeared.
Agriculture remained unmodernized. Conservative landowners dominated the south. Small farmers struggled in the north. Productivity stayed low. Without significant markets or investment, profits stagnated.
Sugar production in Brazil fueled the slave trade. This generated considerable income for Portugal. Even after Brazil’s independence in 1822, Portugal supplied slaves. They came mostly from Angola. Britain banned the slave trade in 1807. Yet Portugal shipped over two million Africans to South America. They shipped more than any other country. It wasn’t until 1869 that Portugal fully banned slavery.
The impact of these profits on Portugal’s industrialization is hard to measure. A lack of mineral resources hindered growth. Only a few industrial areas developed by the late 19th century. Textile production was successful. Woolens came from Covilha. Tungsten mines near Fundão were important. Tobacco, cork processing, paper, ceramics, and glass manufacturing expanded.
The railway network began in the mid-19th century. Lisbon and Porto connected in 1864. A link to Spain followed in 1866. New industries clustered in the capital and Porto. Rural areas saw little job growth. Population soared. Many people emigrated.
Agriculture was Portugal’s backbone well into the 20th century. Better farming methods and mechanization boosted production. Wine, fruit, and cork exports grew. Grain imports remained necessary. Qualified workers and capital were scarce. British dominance in foreign trade posed another challenge. Portugal exploited its colonies for raw materials. Great Britain exported advanced goods to Portugal. In return, they got agricultural products.
Salazar’s dictatorial regime stifled progress. From 1932 to 1968, he focused on colonial exploitation. However, he balanced national finances and stabilized the currency. Low labor costs attracted foreign investors. In the 1960s, industrialization finally began. The steel corporation Siderurgia Nacional expanded. Lisnave built shipyards in Lisbon. Setenave opened near Setúbal. Paper factories, petrochemical companies, and electrical equipment manufacturers emerged.
A small elite of families still controlled the economy. They intermarried with large landowners. Structural change was finally underway. The Carnation Revolution of 1974 overthrew the dictatorship. It unleashed a desire for social change. Large landowners were expropriated in the south. Cooperatives took over their roles. The government nationalized key industries and banks.
This socialist experiment didn’t last. Drops in agricultural production allowed the old elite to reverse land reforms. The government raised wages and expanded administration. A large deficit emerged. Austerity measures with wage cuts followed in 1976. Industrial operations were re-privatized. Portugal joined the European Community in 1986. This marked the end of an era of isolation. Minas de Maria Isabel stands as a reminder of this complex history.