Ross decides to reopen the family copper mine Wheal Leisure and persuades Francis to help him. Ross also escorts Francis's put-upon sister Verity to a dance, where he crosses swords with George Warleggan, annoyed that Ross borrowed capital for the mining project from a rival bank to that of his uncle. Verity meets the sea captain Andrew Blamey, who is keen to marry her but George forbids it, claiming that Blamey killed his first wife. The relationship ends when Francis challenges Blamey to a duel, in which Francis is injured, though Demelza proves her worth when she tends to him, impressing Ross.

Wedding bells ring as miner Mark Daniel marries visiting actress Keren Smith whilst Demelza and Ross have their own celebration as their daughter Julia is born, Ross not allowing Demelza's father's unwelcome visit to the christening party to ruin matters. Young Dr Dwight Enys comes to the area and is befriended by Ross. He is progressive and philanthropic, which annoys the curmudgeonly incumbent Dr Choake. With widespread poverty and mine closures all around Ross proposes that the pit owners form a collective with their own smelting company, to beat the Warleggans' monopoly, and presses ahead with the scheme. Francis opts out and is subsequently ruined as his mine is forced to close. To repay Verity for her kindness Demelza reunites her with Andrew Blamey in town, where they witness a food riot by starving locals.

Whilst Ross's cooperative has some success there are hard times throughout Cornwall and typhoid sweeps through Bodmin jail and kills Jim Carter just as Ross and Dwight break in to rescue him. Dwight is also called upon to visit the injured Keren, who throws herself shamelessly at the young doctor, as Demelza notices. Untouched by privation the Warleggans throw a ball where Francis, struggling to accept his reduced circumstances, neglects Elizabeth, allowing George to step in as her escort. Ross turns up drunk and confronts Halse, the magistrate who jailed Jim and then plays cards recklessly though he does expose his opponent as a card sharp, known to the Warleggans, who are now all the more determined to break him. Further scandal is caused by the arrival of Captain Blamey, who asks Verity to run away with him.

Francis wrongly blames Ross for helping Verity elope with Andrew Blamey. Meanwhile, Mark suspects Dwight and Keren of having an affair, starting chain of events which will have tragic consequences and threaten the safety of eveyone in Nampara.

An epidemic sweeps through the county and Dwight is grateful to Caroline for providing him with a cart-load of fresh oranges to combat it. Ross meanwhile is thwarted in his efforts to expand the mine, thanks to Warleggan and his proxy, Tankard. To provide finances he strikes a deal with a local smuggler to use his beach to land cargo on, much to Demelza's annoyance. Ross also goes into partnership with Francis, despite Warleggan's attempts to split them up, and they open up the mine gaining access to Wheal Grace. Demelza gives birth to a baby boy, Jeremy, which goes some way towards reconciling Francis with Verity.

Ross decides to reopen the family copper mine Wheal Leisure and persuades Francis to help him. Ross also escorts Francis's put-upon sister Verity to a dance, where he crosses swords with George Warleggan, annoyed that Ross borrowed capital for the mining project from a rival bank to that of his uncle. Verity meets the sea captain Andrew Blamey, who is keen to marry her but George forbids it, claiming that Blamey killed his first wife. The relationship ends when Francis challenges Blamey to a duel, in which Francis is injured, though Demelza proves her worth when she tends to him, impressing Ross.

Wedding bells ring as miner Mark Daniel marries visiting actress Keren Smith whilst Demelza and Ross have their own celebration as their daughter Julia is born, Ross not allowing Demelza's father's unwelcome visit to the christening party to ruin matters. Young Dr Dwight Enys comes to the area and is befriended by Ross. He is progressive and philanthropic, which annoys the curmudgeonly incumbent Dr Choake. With widespread poverty and mine closures all around Ross proposes that the pit owners form a collective with their own smelting company, to beat the Warleggans' monopoly, and presses ahead with the scheme. Francis opts out and is subsequently ruined as his mine is forced to close. To repay Verity for her kindness Demelza reunites her with Andrew Blamey in town, where they witness a food riot by starving locals.

Whilst Ross's cooperative has some success there are hard times throughout Cornwall and typhoid sweeps through Bodmin jail and kills Jim Carter just as Ross and Dwight break in to rescue him. Dwight is also called upon to visit the injured Keren, who throws herself shamelessly at the young doctor, as Demelza notices. Untouched by privation the Warleggans throw a ball where Francis, struggling to accept his reduced circumstances, neglects Elizabeth, allowing George to step in as her escort. Ross turns up drunk and confronts Halse, the magistrate who jailed Jim and then plays cards recklessly though he does expose his opponent as a card sharp, known to the Warleggans, who are now all the more determined to break him. Further scandal is caused by the arrival of Captain Blamey, who asks Verity to run away with him.

Francis wrongly blames Ross for helping Verity elope with Andrew Blamey. Meanwhile, Mark suspects Dwight and Keren of having an affair, starting chain of events which will have tragic consequences and threaten the safety of eveyone in Nampara.

An epidemic sweeps through the county and Dwight is grateful to Caroline for providing him with a cart-load of fresh oranges to combat it. Ross meanwhile is thwarted in his efforts to expand the mine, thanks to Warleggan and his proxy, Tankard. To provide finances he strikes a deal with a local smuggler to use his beach to land cargo on, much to Demelza's annoyance. Ross also goes into partnership with Francis, despite Warleggan's attempts to split them up, and they open up the mine gaining access to Wheal Grace. Demelza gives birth to a baby boy, Jeremy, which goes some way towards reconciling Francis with Verity.