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In response to changing international market conditions and to militant workers, South Africa's goldmining companies are down-scaling, shifting to a smaller, more productive labour force. For communities that depend on the mining industry — from businesses which served mine employees to households in Lesotho which survive on migrants' wages — the social impact has been devastating. This study explores the effect of down-scaling in the town of Virginia, OFS, concluding that the burden has fallen hardest on those with the least resources: less-skilled miners and their families. The paper goes on to discuss the findings' policy implications, suggesting that the state will have to he involved in efforts to diversify the region and to create alternative employment possibilities. [ABSTRACT FROM AUTHOR] more...