The development of the Ballarat goldfield and of the city of Ballarat are a significant part of the history of the Australian mining industry. Important developments in technology, legislation and labour relations made their first Australian appearance in Ballarat. The growth of the city and its survival after the closure of the mines provide an interesting case study in the benefits flowing from a vigorous mining operation. The failure of the mines can be attributed to rising costs of materials and labour and declining manpower productivity at a time when the price of gold was not free to respond to changing market conditions. The curtailment of exploration programs and increasing labour unrest resulted from this situation, and made the closure of mines inevitable.