De Beers Timeline: 158 Years of Diamond Industry History

Eureka diamond discovered, starting South Africa’s diamond rush.

The Koffiefontein Mine opens.

The diamond pipes later known as Kimberley and De Beers mines are discovered, giving birth to industrial diamond mining.

De Beers Consolidated Mines, Limited was incorporated on March 12, 1888. The company was formed through the merger of Cecil Rhodes’ De Beers Mining Company and Barney Barnato’s Kimberley Central Mining Company. Among those that financed the purchase were the Rothschilds of London and Paris, making Lord Nathan Rothschild a major shareholder.

DBCM paid £5,338,650 (equivalent to approximately $1.2 billion today in relative economic value) to the liquidators of Kimberley Central in a single check, the largest check ever written at the time. Barnato received £4 million and was appointed a Life Governor of DBCM. Accounts from the era confirm that Rhodes also arranged for Barnato’s election as Kimberley’s Member of Parliament in the Cape Assembly and secured his membership in the exclusive Kimberley Club. As an uneducated former East End performer, Barnato had previously been blackballed by the club’s elite. Gaining social acceptance through Rhodes’s sponsorship proved to be a pivotal incentive in clinching the merger deal.

Under Cecil Rhodes’ management, DBCM became the dominant diamond mining company in Kimberley.

Rhodes establishes the London Diamond Syndicate, a group of rough diamond buyers formed to market De Beers’ production, creating the first organized system for marketing its rough diamonds and laying the foundation for the company’s century-long control of diamond distribution. The group was led by Alfred Beit; however, it was not an actual company.

Following its formation, De Beers establishes a UK branch register and London-based committees (including the Finance and Diamond Committees) to manage European investor share transfers and coordinate rough diamond sales with the London Diamond Syndicate.

De Beers reorganizes and expands the London Diamond Syndicate to ten buying firms under a formal marketing agreement.

The names of the five original buyers are documented in a well-known photograph of the leading merchants associated with the original London Diamond Syndicate, representing five of the ten principal London buying houses. They are: Dreyfus (of Dreyfus Bernheim & Co.), Gustav Henry Bonas (Joseph Brothers), Colonel David Harris (L.A. Abrams & Co., associated with Barnato ), Leon Sutro (A. Dunkelsbuhler & Co.), and H. Hirsche (Porgès, Wernher, Beit & Co.).

De Beers is listed on the Johannesburg stock exchange (JSE).

Premier Mine discovered. It would be the source of many exceptionally large diamonds.

Discovery of the 3,106-carat Cullinan Diamond.

The Kimberley mine, the diamond mine that gave birth to De Beers, closes.

Also known as the Big Hole, it was converted into a tourist attraction after its closure.

Anglo American Corporation (AAC) of South Africa was founded to exploit the gold deposits east of Johannesburg. The £1 million authorized capital was raised largely from British and American sources.

Anglo American Corporation becomes the largest shareholder in De Beers.

Namaqualand Mines opened along the west coast of the Northern Cape province, South Africa.

Ernest Oppenheimer secured control of DBCM and became chairman. This is generally considered the point at which the Oppenheimer era at De Beers began.

Mines shut during Great Depression as De Beers prefers to halt production instead of lowering prices.

Central Selling Organisation (CSO) established by Ernest Oppenheimer as a diamond selling company based in Kimberley and London. Sight system begins.

First U.S. generic advertising campaign, the beginning of modern diamond consumer marketing.

De Beers closes its mines again due to WWII.

De Beers establishes its Industrial Diamond Division to produce synthetic industrial diamonds.

The slogan “A Diamond Is Forever” is created by Frances Gerety.

Harry Oppenheimer succeeds his father, Sir Ernest Oppenheimer, as Chairman of De Beers Consolidated Mines and Anglo American Corporation in December 1957.

De Beers and the Government of Tanganyika (later Tanzania) acquired the Williamson Mine (Mwadui) in a 50/50 deal for ~£4 million. The mine was sold by the heirs of Dr. John Williamson, a Canadian geologist who discovered the resource.

The mine will be famous for its pink diamonds, some referred to as ‘Bubblegum Pink’.

The Finsch mine opens in South Africa’s Northern Cape.

The USSR and De Beers reached their first diamond sales arrangement. Most Soviet rough diamonds were marketed internationally through De Beers.

De Beers Auction Sales, better known as Diamdel, is formed to sell rough diamonds to non-Sightholders.

The Orapa diamond pipe discovered in Botswana.

Botswana and De Beers establish the De Beers Botswana Mining Company. The state holds an initial 15% stake in this local mining entity.

Orapa diamond mine opens.

One of the world’s largest open-pit diamond mines by surface area.

Tanzania nationalizes Williamson the mine in 1971.

The Jwaneng pipe was discovered in Botswana.

Botswana renegotiates its local position up to a 50/50 joint venture in De Beers Botswana Mining Company. This entity is renamed Debswana in 1992.

Opening of the Letlhakane diamond mine in Botswana.

Stagflation and double-digit inflation across Western economies triggered heavy speculative demand for hard assets, driving a major investment boom in polished diamonds.

Between 1977 and early 1980, prices for top-tier polished diamonds D-color, Internally Flawless (D/IF) surged by 200% to 300%.

Diamond prices peak. Between 1977 to 1980, the typical price of a 1-carat D/IF diamond Increased about 733% from $7,200 per carat to $60,000.

The 1980s Diamond Crisis: Triggered by a speculative bubble in investment-grade stones, aggressive Federal Reserve interest rate hikes, and an unprecedented surge in supply, the slump forced De Beers to act as the buyer-of-last-resort on a massive scale.

De Beers rough diamond sales fell by more than 50% in 1981-2 (1980:$2.72 billion to 1982: ~$1.26 billion).

Prices of D/IF 1 carat round diamonds fell from ~$60,000 (1980) to $15,000-$25,000 or 60-75%.

Of the more than 250 Sightholders it had prior to the crisis, only 150 were left. About 40% of the closures were due to insolvencies.

May 1981 – Zaire (DRC) breaks away from De Beers’ Central Selling Organisation (CSO). President Mobutu Sese Seko ends MIBA’s exclusive supply agreement with De Beers subsidiary Britmond, opting to sell the country’s industrial diamond production to independent Antwerp merchants.

In July, the Jwaneng diamond mine started full production.

In an attempt to slow the free fall in prices and preserve jobs in Botswana, De Beers’ stockpile more than doubles to ~$1.95 billion, +115%.

Debmarine Namibia established, marking the start of industrial-scale offshore diamond mining.

Improved global economy and a rise in demand by Japanese retailers absorbs the inventory overhang.

Botswana swaps its large diamond stockpiles from the Diamond Crisis leading to its stockpile-for-equity transaction. The government acquires an initial 5.27% direct shareholding in De Beers.

De Beers restructures the group by establishing De Beers Centenary AG in Switzerland. The new holding company takes over the group’s international diamond interests, including the Central Selling Organisation, while South African mining assets remain under De Beers Consolidated Mines. The move is intended to protect the company’s international business as South Africa moves toward majority rule.

De Beers Centenary AG is listed on the Swiss exchange in Zurich. Its shares are linked to those of DBCM, which are traded on the JSE at a 1:1 ratio, forming the “De Beers Linked Units.”

The De Beers mine closes after more than a century of mining.

De Beers signs a five-year deal to market USSR’s diamond output.

Elizabeth Bay Mine, which has been operational intermittently since 1908, was reopened by Namdeb.

ALROSA formed as the successor to the Soviet diamond mining operations. It continues to sell its rough diamonds to De Beers, becoming De Beers’ largest external supplier.

Venetia opens in South Africa.

De Beers becomes major buyer of ALROSA rough diamonds.

De Beers launches first marketing program in China.

Namdeb formed, a 50/50 mining partnership with Namibia.

After production at Williamson fell under state management, the government of Tanzania invites De Beers back, leading the company to buy a 75% stake.

Launches the famous “Shadows” campaign in the United States.

The Snap Lake diamond deposit discovered by mining junior Winspear Diamonds.

Nicky Oppenheimer appointed Chairman of De Beers, succeeding Julian Ogilvie Thompson.

Daberas Mine, an open-pit mine alongside the Orange River in Namibia starts production.

In July 2000, De Beers unveiled its groundbreaking Supplier of Choice (SoC) strategy to counter market share erosion from competing producers like Rio Tinto and BHP Billiton. Managed by the newly rebranded Diamond Trading Company (DTC, formerly the CSO), SoC marked a shift from supply control to demand creation. Rather than allocating rough diamonds based on traditional relationships, DTC began vetting Sightholders against strict value-add metrics, prioritizing financial strength, downstream marketing capability, and branding investment.

De Beers Marine Namibia (Debmarine) formed.

De Beers acquired Winspear Diamonds for approximately C$478 million (~US$305 million). The Canadian junior exploration company had discovered the Snap Lake diamond deposit in 1997.

On May 30, 2001, De Beers is privatized after 108 years as a listed company in a $19 billion takeover deal that included cash, AA shares, and a $1 dividend per linked unit (the De Beers shares listed on JSE, LSE, and Swiss Exchange were traded jointly). New Ownership structure: Anglo American owns 45% of De Beers, the Oppenheimers 45%, and Botswana a 10% shareholding.

As part of De Beers’ privatization, DB Investments (later renamed De Beers Société Anonyme) acquires 100% of both De Beers Consolidated Mines and De Beers Centenary AG, bringing the two companies under a single holding company.

Also in May, Debswana became the first company in the world to provide free Anti-Retroviral treatment to its employees. It covers all employees living with HIV/AIDS and their one legally married spouse.

DB and ALROSA sign a five-year trade agreement. ALROSA would sell ~$800 million per year of rough diamonds to De Beers. This represented roughly half of ALROSA’s annual production value and essentially all ALROSA exports outside the CIS at the time.

De Beers Diamond Jewellers, a 50/50 partnership between De Beers and LVMH was formed.

De Beers rebranded its Industrial Diamonds business (Debid) as Element Six.

Forevermark, a branded diamond marketing project, was launched.

Kimberley Process launched January 1. De Beers was a founding participant.

Damtshaa diamond mine reaches full production.

De Beers pleads guilty to conspiring with GE to fix prices in the industrial diamond market. It was fined $10 million.

Signs with Botswana on a 25-year renewal of the Jwaneng and Orapa mining leases.

Ponahalo Capital buys 26% in De Beers Consolidated Mines Limited, a Black Economic Empowerment (BEE) transaction.

EU pressure: Due to European Commission antitrust concerns, De Beers agrees on a five-year phase out of rough diamond purchases from ALROSA. The purchases ended in January 2009. At the time De Beers purchases substantial amounts of ALROSA’s production, according to some estimates, as much as 80% by value.

DTC Botswana is formed as a 50/50 joint venture between the Government of Botswana and De Beers. It sells the rough diamonds mined by Debswana, with 70% allocated to De Beers Sightholder Sales and 30% to the Okavango Diamond Company.

Sells Cullinan Mine (formerly Premier) and Koffiefontein Mine to Petra.

Namibia Diamond Trading Company (NDTC) begins operations as a 50/50 Government of Namibia–De Beers joint venture.

In May, the US Federal District Court in New Jersey approved the settlement of the class action claims alleging that De Beers monopolized the global rough diamond market and artificially inflated diamond prices in the US. The company paid $295 million without any admission of liability.

Opens Snap Lake mine in Canada’s Yellowknife, Northwest Territories.

Victor mine, Ontario’s first and only diamond mine, opened in July 2008.

Voorspoed Mine opened in Free State province, South Africa.

De Beers agreed to sell its 75% stake in the Williamson diamond mine to Petra Diamonds in September 2008 for $10 million, with the acquisition completed in February 2009.

De Beers stops buying ALROSA rough.

De Beers sells the AK6 diamond project to Lucara for $49 million. Later renamed Karowe, the Botswana diamond mine became famous for producing exceptionally large, high-quality gem diamonds.

E Oppenheimer & Son International Limited (EOSIL), the Oppenheimer family’s holding company, sold 2.1 million shares in Anglo American plc for £63.91 million ($100.5 million). The Oppenheimers now hold less than 2% of the mining company they founded nearly 100 years ago.

Anglo American announced that it is buying the Oppenheimers’ 40% stake in De Beers for $5.1 billion. AA stake in DBG rises to 85%.

The Finsch mine in South Africa is sold to Petra.

De Beers holds first International Sight in Gaborone in November.

De Beers signs a new sales contract with Namibia and increases Namibia’s participation in diamond marketing.

Sendelingsdrif diamond mine, an alluvial diamond deposit along the Orange River in Namibia, is inaugurated.

Namaqualand Mines sold to Trans Hex.

Snap Lake mine closes.

Opens the Gahcho Kué mine, its second mine in Canada. This is a joint venture with Mountain Province.

Signs 10-year agreement with Namibia to sort and sell Namdeb’s production.

De Beers buys full ownership of De Beers Diamond Jewellers, later renamed De Beers London.

Launches Tracr, to create a blockchain platform to track a diamond’s path through the diamond value chain.

Letlhakane open-pit operations ceased.

De Beers starts the GemFair pilot in April 2018, launching in Sierra Leone’s Kono district. The goal was to create a traceable diamond supply chain for artisanal and small-scale miners.

Lightbox, a jewelry line set with lab diamonds, is launched, shocking the diamond industry.

In a response to growing consumer demand for lab diamonds, De Beers decides to fight it with a drive to lower lab diamond prices by offering LGD jewelry for $800 per carat. At the time, US retailers offered LGDs at $4,100-$4,400.

Voorspoed Mine in South Africa ended production in 2018.

Victor mine closes after 11 years in operation.

Elizabeth Bay Mine in Namibia sold to Sperrgebiet Diamond Mining.

De Beers’ global market share has fallen to 35% by value. Once the dominant supplier of the world’s rough diamonds, the company now accounts for 28% of global volume following the loss of ALROSA’s distribution and years of mine closures.

The “De Beers Cullinan Blue”, a rare 15.10-carat Internally Flawless fancy vivid blue diamond, sold at a Sotheby’s auction in Hong Kong for $57.5 million.

Selling for about $3.8 million per carat, this diamond was recovered from the Cullinan Mine in South Africa in 2021.

Debswana approves the Jwaneng Underground Project.

De Beers delivered first production from its $2.3 billion underground expansion at the Venetia diamond mine in Limpopo, South Africa.

Anglo American puts De Beers up for sale. Fending off a $49 billion takeover bid from BHP Group, Anglo American commits to a major corporate restructuring that includes selling or demerging its 85% controlling stake in De Beers. The decision signals a decisive exit from the diamond sector, ending Anglo’s 12-year era of majority ownership since buying out the Oppenheimer family stake in 2012.

De Beers and Botswana renew their long-term contracts.