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South Africa's Economy

Minerals and the Making of South Africa

How diamond and gold discoveries in the late 1800s transformed South Africa into a mining economy, drew migrant labour and shaped its cities and institutions.

South Africa’s modern economy was built on minerals.

Diamonds

Diamonds were discovered near Kimberley in 1867. Cecil Rhodes consolidated mines into De Beers, which came to dominate the world diamond trade.

Gold

In 1886, huge gold deposits were found on the Witwatersrand. Johannesburg grew rapidly around the mines.

Scale

For much of the 20th century, South Africa produced a large share of the world’s gold.

Migrant labour

  • Mines depended on African migrant workers from rural areas and neighbouring countries.
  • Workers lived in compounds, separated from families.
  • Wages were kept low, with racial job restrictions.

Legacy

  • Johannesburg became Africa’s financial capital.
  • Mining houses like Anglo American grew into global firms.
  • The migrant labour system shaped racial and spatial inequality.

Deep mines

South Africa’s gold mines are among the deepest in the world, making them costly to operate as ore grades fell.

The mine compound

In 1920, a young man from the Eastern Cape signs a contract to work in a Johannesburg gold mine, living in a crowded compound far from his family for a year.

Thinking South Africa's wealth came from farming

Diamonds and gold transformed it into a mining economy.

Key takeaways
  • Diamonds were found near Kimberley in 1867.
  • Gold on the Witwatersrand in 1886 built Johannesburg.
  • Mines relied on low-paid migrant African labour.
  • Mining shaped racial and spatial inequality.
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