1 of 6

Write now Article Tools

DeBeers has been synonymous with quality diamonds for more than 100 years. Its reputation for the best diamonds in the world has even embedded itself in pop cultural references, as well. However, in addition to instant name recognition, it has also been the subject of a lot of criticism and even a few lawsuits. Because of its notoriety, DeBeers has had a major impact on the world's diamond trade. In truth, if diamonds are forever, then DeBeers is the master who infuses life into this precious stone, creating friends for a number of women around the world.

Yet, how did this company become such a major powerhouse in diamond productions? It all started with an English gentleman by the name of Cecil Rhodes. In 1871, Rhodes went to South Africa as a business assistant to his brother. There, he became interested in diamond mining in the Kimberley fields. Seventeen years later, in 1888, he founded DeBeers Consolidated Mines and the company grew rapidly, monopolizing the diamond trading business. By 1891, DeBeers was mining 90% of the world's diamonds.

Rhodes continued to expand his company, controlling two Northern provinces, Southern Rhodesia (Zimbabwe) and Northern Rhodesia (Zambia) and became prime minister of Cape Colony. A consummate businessman, he to conquer Boer president Paul Kruger and overtake the mineral-rich Transvaal. However, his plan failed because of Leander Starr Jameson, the British administrator in southern Africa, forcing Rhodes to resign as prime minister and as head of the British South Africa Company. After his public humiliation, he left public life and left most of his fortune to public service, including the Rhodes Scholarship to Oxford. However, the diamond company he founded continued to be the name most people thought of when they thought of the shiny mineral.

More than 100 years after it was founded, DeBeers is involved in all aspects of diamond mining, including open-pit, underground, large-scale alluvial, coastal and deep sea. The presence of the company can be felt in 25 countries, the majority of which are in Africa. In addition to mining diamonds, the company has a number of lucrative business deals, partnering with notable brands such as Louis Vuitton. Thus, they have continued to have major holdings in the production and distribution of diamonds worldwide.

Amid DeBeers success, though, have been many controversies and lawsuits levied against them. According to a report by MSNBC in 2004, DeBeers plead guilty to 10 years of price fixing. The report stated that "the company admitted conspiring to fix prices in the $500 million industrial diamond market." Because of this, the company received a $10 million fine. Yet, in 2008, the company still has major sales in the United Stated, Europe and Japan.

So, next time you get a diamond from that special someone, remember, it probably came from one of the many diamond mines in the DeBeers family. If it wasn't for the founding of this company, we may never have had the phrase, "Diamonds are forever."

Sources:

http://www.ba rtleby.com/65/rh/Rhodes-C.html
http://www.biography.com/searc h/article.do?id=38197

Learn more about this author, Cicely Richard.
Click here to send this author comments or questions.

Add your voice

Know something about DeBeers and its impact on the world's diamond trade?
We want to hear your view. Write now!