Prior to the foundation of the settlement a preliminary expedition headed by a geologist called Dietmar was undertaken assessing the prospects of developing mining in the immediate area. He predicted that there were significant quantities of cassiterite-tin ore in the area, a prediction that was confirmed by later, more focussed, expeditions by larger teams of geologists. Valkumey was founded in 1941 when mining began in this area, and the first few tons of tin were extracted from the Valkumey mine in the form of cassiterite. The mining was done almost entirely by prisoners of and exiles created by the DalstroyGULAGsystem. Shortly after the opening of this mine, further tin mines opened near Pevek and Iultin, and mining became the major element of the Chukotkan economy. Valkumey became one of the major centres of tin mining in the Soviet Union, supplying a significant percentage of the tin required by the Soviet military. By 1968, the population of the settlement had risen to 3,700. However, with the closure of the mine, the settlement was abandoned in 1998, with the remaining population moving to the town of Pevek, up the coast to the north. As of 2009, Valkumey is included in the list of settlements currently in the process of being liquidated.
Population
The mines were declared unprofitable and that there was no possibility of developing any other form of economy in 1999 and the settlement was closed along with a number of others in Chukotka. The Russian government guaranteed funds to transport non-working pensioners and the unemployed in liquidated settlements including Valkumey from Chukotka to other parts of Russia. The Ministry of railways was obliged to lease containers for the transportation of the migrants' goods to the Chukotkan administration and ensure that they were delivered to the various settlements. The population table below shows the impact on the settlement as a result of the closure of the mines.
Transport
Valkumey is connected via a road network to Pevek, Komsomolsky and Krasnoarmeysky along with a number of other local settlements, but it is not connected by permanent road to any other part of the district or Chukotka. There is however, a small road network within the settlement including:
Улица Горняцкая
Улица Комсомольская
Улица Космонавтов
Улица Красноармейская
Улица Минерал
Улица Рохлина
Улица Северная
Climate
Valkumey has a Tundra climate because the warmest month has an average temperature between and.