The discovery of diamonds in Du Toitspan i 1870 led to the second diomond-rush. In July 1871 the Kimberley Mine was discovered. Many of the diamond diggers started their own businesses that provided goods for the diggers. Other diggers became diamondbuyers. The claims were 30x30 feet(10x10 meters). The limitation of claims per person was abolished in 1876. This led to the establishment of joint-stock companies and wild speculation in diamonshares.
Cecil John Rhodes helped his brother, Herbert to work in the Kimberley Mine in October 1871. He was eighteen years old. He started to make big money through buying and selling claims in thew Kimberley Mine and the De Beers Mine. Rhodes realised that the only way to get central control over the diamondindustry is through amalgamation. He combined his interests with those of a friend, Charles Dunell in 1873. Through amalgamation, partnerships and purchases they owned all the best claims in the De Beers Mine within a few years. On the first of April 1880 they combined their interests with two groups in the De Beers Mining Company Ltd. with Rhodes as chairman. In 1887 the entire De Beers Mine was owned by the company. Rhodes then found a fancy in the Kimberley Mine. In this mine the most important claims belonged to the Kimberley Central Diamond Company and Barnett Isaacs.(Barney) Barnato became Rhodes' biggest opponent.
Barney Barnato arrived at the diamondfields with very few belongings in 1873. He made a lot of money as a diamond-merchant in the company Barnato Brothers - belonging to him and his brother. In 1876 he bought his first claims in the Kimberley Mine. He started his own company by uniting smaller partnerships in 1881. He named it The Barnato Diamond Mining Company and he was the most important shareholder.
On th 13th of March 1888 Rhodes and Barnato united their interests in the De Beers Consolidated Mines Ltd. except for 25, all shares were now in the hands of four people: Barnato and F.S. Philpson(of the Kimberley Central Diamond Company) and Rhodes and Alfred Beit of the De Beers Mining Company. By 1890 De Beers delivered about 90% of the diamondproduction in the Kimberley region. The De Beers Company had almost exclusive control over the diamond production(monopoly) and very, very successful.
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