De Beers

related topics
{company, market, business}
{@card@, make, design}
{law, state, case}
{theory, work, human}
{island, water, area}
{work, book, publish}
{woman, child, man}
{build, building, house}
{black, white, people}
{group, member, jewish}
{country, population, people}
{album, band, music}

De Beers and the various companies within the De Beers Family of Companies are in the diamond, diamond mining, diamond trading and industrial diamond manufacturing sectors. It is by far the largest company in all these categories.

De Beers is active in every category of industrial diamond mining: open-pit, underground, large-scale alluvial, coastal and deep sea.[1] Mining takes place in Botswana, Namibia, South Africa and Canada.

Contents

Company history

Cecil Rhodes, the founder of De Beers, got his start by renting water pumps to miners during the diamond rush that started in 1871, when an 83.5 carat diamond was found on Colesburg Kopje (present day Kimberley), South Africa. He invested the profits of this operation into buying up claims of small mining operators, with his operations soon expanding into a separate mining company.[2] He soon secured funding from the Rothschild family, who would finance his business expansion.[3][4] De Beers Consolidated Mines was formed in 1888 by the merger of the companies of Barney Barnato and Cecil Rhodes, by which time the company was the sole owner of all diamond mining operations in the country.[2][5][6] In 1889, Rhodes negotiated a strategic agreement with the London-based Diamond Syndicate, which agreed to purchase a fixed quantity of diamonds at an agreed price, thereby regulating output and maintaining prices.[4][7] The agreement soon proved to be very successful—for example during the trade slump of 1891–1892, supply was simply curtailed to maintain the price.[8] Rhodes was concerned about the break up of the new monopoly, stating to shareholders in 1896 that:[4]

Full article ▸

related documents
Economy of Jordan
Economy of Grenada
Economy of Saudi Arabia
Privatization
Economy of Colombia
Economy of Zimbabwe
Economy of Turkmenistan
Individual Savings Account
Barter
Economy of Argentina
Economy of São Tomé and Príncipe
Economy of the Philippines
Economy of Djibouti
Economy of Norway
Long-Term Capital Management
Economy of Taiwan
Economy of Slovakia
Philips
Economy of Poland
Federal Housing Administration
Economy of Rwanda
Economy of South Korea
Nortel
Financial market
Takeover
Euro
Economy of Ukraine
General Electric
International Financial Reporting Standards
Economy of Jamaica