De Beers Consolidated Mines founded in Kimberley

Background. Cecil Rhodes began his involvement in the diamond industry during the rush that started in 1869, when an 83.5 carat diamond called the 'Star of South Africa' was found at Hopetown near the Orange River. He initially rented water pumps to miners. Over time, the various smaller mining companies were amalgamated by Rhodes and Charles Rudd into De Beers. In a later development, the company became the sole owner of all diamond mining operations in South Africa.

Financial Structure. The founding of De Beers Consolidated Mines was financed by the South African diamond magnate Alfred Beit and the London-based bank N M Rothschild & Sons. In the years that followed, Rhodes and his brother spent seventeen years buying up smaller diamond mining operations in the Kimberley area, and in 1890 a monopoly over the world's diamond supply was sealed through a strategic partnership with the London-based Diamond Syndicate, with all parties agreeing to maintain high prices.