Barney Barnato

Barney Barnato was born in Whitechapel in London, United Kingdom. His original name was Barnett Issacs and he changed it to Barney Barnatto when he was acting as a comedian. He was of Jewish decent, he dropped out of school at the age of 14 and obtained a number of odd jobs that included being a bouncer.

After hearing of the discovery of diamonds in Kimberley, South Africa in 1866 from several of his relatives who had left for the Southern African country he followed his brother Harry to Cape Town in search of fortune in the diamond rush arriving in South Africa in 1873. He arrived in the Cape Colony penniless and with only a box of cigars which he intended to sell to diamond diggers being the only valuable item in his possession. A decade later he would be a millionaire and famously known as Cecil Rhodes biggest rival.

Barnato began his career in the Cape as an itinerant buyer of diamonds and this was followed by the purchase of diamond claims in the middle of Kimberley Mine. He found success and was able to establish the Barnato Diamond Mining Company which became a competitive rival of Cecil John Rhode’s De Beers Company. Rhodes and Barnato set out to dominate the diamond industry by trying to buy up all the shares that came onto the market as they both understood the power of consolidating the diamond industry. Barney Barnato acquired a number of claims resulting in the 1885 merger of his company with that of Baring-Gould’s Kimberly Central Mining Company.

Through this deal he became a strong independent player in the diamond industry and owner of a notable stake in the Kimberley Mine.

Cecil Rhodes was well aware of the dangers posed by competition in the diamond industry as his intention was mostly to monopolise the industry. Rhodes put in place a vehicle for the takeover of the only other independent company the French controlled, Compaigne Francais des Mines De Diamant du Cap, which had significant influence in Barney Barnato’s company. A struggle for the takeover and control of this company ensued between Rhodes and Barnato. Rhodes was victorious in the battle through the support of the Rothschilds and Alfred Beit, he managed to takeover Barnato’s company and in 1888 amalgamated the two companies into De Beers Consolidated Mines Ltd. Following the amalgamation Barnato in turn became one of four life governors of De Beers Consolidated Mines Ltd.

Barneys sell of his company gave Cecil Rhodes monetary power to expand his British imperialistic program North into Zimbabwe.

He died on the 4th July 1897 in what was reported to be suicide.