Today in Kimberley's History
March 12th
"Every day has a story about Kimberley's past."
On this day...
On 12 March 1888, one of the most significant business deals in South African history was concluded. Barney Barnato agreed to sell Kimberley Central Diamond Mining Company to Cecil Rhodes, leading to the formation of De Beers Consolidated Mines. The agreement transformed Kimberley into the headquarters of the world's diamond industry and laid the foundation for one of the most influential mining companies ever created.
1888 – De Beers Consolidated Mines is Formed
On 12 March 1888, Barney Barnato sold control of the Kimberley Central Diamond Mining Company to Cecil John Rhodes, bringing an end to years of intense competition between Kimberley's two diamond mining giants. The agreement resulted in the creation of De Beers Consolidated Mines Limited, with Cecil Rhodes elected as its founding Chairman.
To complete the takeover, Rhodes wrote a cheque for the astonishing sum of £5,338,650—the largest cheque ever written anywhere in the world at that time. Around £4 million of the purchase price went to the Barnato brothers, making the transaction one of the most remarkable financial deals of the nineteenth century. Rather than excluding his great rival, Rhodes ensured that Barnato remained closely involved in the new company. Barnato became one of De Beers' four Life Governors, was supported as Kimberley's representative in the Cape Parliament, and was elected to membership of the prestigious Kimberley Club.
The agreement was concluded in the De Beers Board Room at the company's headquarters in Kimberley. It was within these walls that Rhodes and Barnato ended years of fierce rivalry and created a company that would dominate the world's diamond trade for more than a century. For many years, visitors could still see the original Board Room on Warren Street, complete with commemorative plaques honouring Cecil Rhodes and identifying the historic meeting place. Sadly, these plaques have since disappeared, but the building itself survives as an important reminder of one of the most significant business transactions ever concluded in South Africa.
The merger brought almost all of Kimberley's major diamond mines under a single company. This ended years of fierce rivalry among competing mining companies and allowed De Beers to regulate diamond production, stabilise prices, and expand its influence across southern Africa and, eventually, the world.
From its headquarters in Kimberley, soon relocated to Stockdale Street, De Beers became synonymous with the global diamond trade. The company shaped not only the city's economy but also its architecture, education, healthcare, infrastructure and social development. Many of Kimberley's most recognisable buildings, institutions and public spaces owe their origins to De Beers and the wealth generated by the Diamond Fields.
Today, the legacy of that historic agreement can still be seen across Kimberley—from the Big Hole Mine Museum to the city's magnificent public buildings, parks and historic suburbs. Few business transactions have had such a lasting influence on the development of a single city.
Did You Know?
The agreement creating De Beers Consolidated Mines was signed in Kimberley, in a Board Room that still survives today. Although the commemorative plaques have since disappeared, the building remains one of the city's most significant business heritage sites.
The cheque for £5,338,650 written by Cecil Rhodes to acquire the Kimberley Central Diamond Mining Company in March 1888. At the time, it was the largest cheque ever written.
The historic De Beers Board Room on Warren Street in Kimberley, where the agreement creating De Beers Consolidated Mines was concluded in March 1888. (Photo: Richard Jones, 2003).
The commemorative plaques that once marked the entrance to the historic Board Room. The upper plaque honoured Cecil John Rhodes, while the lower plaque identified the room where De Beers Mining Company Limited conducted its board meetings. These plaques have since disappeared. (Photo: Richard Jones, 2003).
Can't find a Kimberley connection for a particular date? Our Today in Kimberley's History collection is continually expanding as we research Kimberley's rich history. If you know of a notable local event that occurred on a specific date, we'd love to hear from you using the Contact Us page.
Kimberley's Story Continues
Kimberley's history is a story of discovery, determination and leadership. From the sale of the farms that gave birth to the Diamond Fields to the lives of people such as Robert Sobukwe, whose courage inspired a nation, the city's past continues to shape its future. Join us tomorrow as we uncover another remarkable chapter in Kimberley's history.
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