The history of the South African Diamond Industry


More than 3 000 years ago diamonds were discovered in India and for the centuries to follow they would serve as symbols of wealth and power for their owners. Following Brazilian discoveries in 1725, increasing numbers of these valuable gems found their way into European markets.

In the 1860's diamond experts were extremely skeptical when word started spreading about diamonds being found on the dry and remote southern tip of Africa. Up to that point diamonds had always been found in or very close to rivers and South Africa was known for its arid conditions.

One Geologist commissioned by the London Gemolical Society concluded after a visit to the country that "South Africa was the least likely of all the countries I have visited to have diamonds". It was generally accepted that any diamonds found had probably been placed there by land speculators or migrating ostriches!

Several months after the report was published, a new era began when young Erasmus Jacobs stumbled upon a 21-carat diamond, aptly named the "Eureka". Shortly thereafter the 83-carat "Star of South Africa" was found in the same vicinity. News of these discoveries spread like wildfire and people from all parts of the world flocked to South Africa.

During these early days nobody knew that the actual source or primary diamond deposits were located in volcanic pipes, and that diamonds found on riverbanks were only secondary deposits that had found their way there by way of erosion. So naturally thousands of diggers flocked to the banks of the Orange and Vaal rivers, where, using primitive equipment, they recovered the alluvial diamonds.

When yields tapered off the diggers moved inland where diamonds had been mysteriously found on "dry" diggings in the Kimberley area. Unbeknown to them, this area centered on volcanic kimberlite pipes - the diggers had unwittingly stumbled on the primary source of diamonds!

Six extremely rich diamond bearing volcanic pipes were located in a very small area, a geological anomaly which would change South Africa and the future of diamond mining forever. The South African discoveries were so enormous that for the first time the man in the street was able to afford a diamond.

The early mining days were marked by huge inefficiencies , massive duplication of effort and great hardships.

The mines were originally divided into small claims measuring about 10 square meters. At first, access roads crisscrossed the mines but these often collapsed as each digger exploited his claim to the limit, causing their "big holes" to deepen rapidly. Ropeways, connecting each claim to the edges of the mines, were then rigged to haul the diamond-bearing ground to the surface. In time, some claim owners pooled finances to buy equipment and machinery, which was rapidly becoming essential for further exploitation of the diamondiferous "blue" ground. Eventually the surface mining was exhausted and the only place to go was down. The first shafts were sunk.

It wasn't until several large companies consolidated, bringing efficiency and order to this wild industry, that large scale efficient mining became possible.

One man was destined to organize and lay down the structure for the industry. Cecil John Rhodes arrived in Kimberley in 1871 and, only 9 years later, formed the De Beers Mining Company. Named after the De Beer brothers who owned the farm Vooruitzigt and originally based at the De Beers Mine, the Company would go on to absorb many smaller companies and individual claims to gain overall control of all the mines in the Kimberley area.

Following an intense financial struggle between Rhodes and Barney Barnato, De Beers Consolidated Mines Limited as formed on 12 March 1888. It was the largest financial transaction of the day, amounting to £5 338 650 being paid for the Kimberley Mine. With consolidation of the Kimberley and De Beer's mines now effected, comprehensive mining systems became possible.

Today, De Beers is the leader in the prospecting and mining of diamonds throughout the world. It has mines of its own in South Africa, Namibia, and Botswana. Approximately 85% of worlds diamond supply are marketed through the DeBeers controlled Central Selling Organization (CSO) based in London.