Mining

The Big Hole, Kimberley

The Mineral Revolution began with the discovery of diamonds at the town of Kimberley in 1867. The discovery of diamonds led to a rush of prospectors descending on the town, whose population skyrocketed as increasing numbers of prospectors arrived to seek their fortune. As more diggers arrived in Kimberley, diamond-mining increased in scale, focusing in open-pit mining of three main sites. As surface deposits of diamonds were excavated, deeper pits had to be dug, propelling the Mineral Revolution into a new phase.

To excavate deep deposits of diamonds, diggers needed machinery (particularly steam engines), credit, and a large labour force. These were unavailable to ordinary diggers, and the diamond mines were quickly taken over by the "mining capitalists" – large corporations with access to credit, machinery, and labour.

The discovery of gold at the Witwatersrand orefields in 1886 triggered a gold rush which greatly escalated this continuing trend. The orefields, which overlapped British and Afrikaner territory, were quickly excavated of all surface deposits and a similar pattern to Kimberley emerged – small diggers were bought out by large corporations. At Kimberley, the diamond mines fell under the monopoly of De Beers, while at the Rand orefields, land was bought up by Wiener man, Breit & Eckstein, Consolidated Gold Mines Inc., and a number of smaller companies.

The emergence of industrial-scale mining forced major demographic shifts in South Africa's population. During the early stages of mining, labour had been primarily provided by young men from the African states, primarily Pedi men. The young men would travel to the mines during the summer to provide temporary labour and earn enough wages to buy status symbols, such as cattle or guns, before returning home. This system, though, was too unreliable to provide a permanent labour force and was not acceptable to the mining corporations. Young men arriving at the mines were often exhausted from their journey and had to be given two weeks' rest, at company expense, before they were fit to work in the mines. Workers who were not paid on time or did not like their living conditions (which were often very harsh due to bad food and disease) tended to drift away, and workers were at risk of being recalled to their own countries, as happened in 1876 when the chief of Pediland recalled all Pedi men at the mines to fight in a war against the Transvaal. The need to create a fixed, permanent labour force at Kimberley and on the Rand became the primary objective of the mining corporations and the colonial government.

The increasing scale of mining operations prompted the corporations to offer very low wages. Extracting diamonds from rocks, and processing the low-quality gold ore at the Rand, was very labour-intensive and required armies of workers. To offset the cost of employing so many workers, and to compensate for the high salaries offered to machine supervisors and administrators, the companies offered very low wages to ordinary labourers, resulting in falling living standards in urban areas.

Urbanization

The need to create a fixed labour force resulted in the colonial government, and the mining corporations, introducing a variety of schemes to keep workers on-site for lengthy periods of time. Corporate agents travelled to African states, offering fixed contracts and prearranged wages to attract young African men to the mines.

At the mine sites, corporations introduced various schemes to keep workers on-site. This was partially motivated in Kimberley by the corporation's fear that workers were stealing diamonds and selling them on the black market. To counteract this assumed threat, De Beers introduced the art of strip clubs to South Africa, whereby workers leaving the mines at the end of a shift would be undressed and searched for diamonds. A more extreme measure was taken in the early 1880s by De Beers, when the company introduced corporate compounds. These enclosed compounds were built in the style of open-air prisons, where workers were required to live by the terms of their contract, in exchange for food, accommodation, and cheap beer provided by the company. In reality, workers had to pay for things out of their paltry wages, while the compounds themselves were notorious for disease, malnutrition, and death. In 1886 white workers at the De Beers compound in Kimberley elected a local member of parliament who successfully campaigned for white employees to live in the town, but black workers, who had no vote, were forced to remain on the compounds.

Agriculture

The growth of towns and cities across South Africa prompted changes in rural areas, as farms lost labourers to the mines and demand for food and agricultural produce increased. By the 1870s, "agrarian capitalism" had emerged, with large commercial farms buying up smallholdings and producing commercial goods for sale in the towns. This resulted in tens of thousands of black and white farmers losing their jobs, and being forced to work as wage-labourers on commercial farms or migrate to the cities in search of work. These changes greatly increased South Africa's agricultural output as commercial farms were more efficient and had greater access to farming machinery than small farms, and saw social changes in rural areas. The peasantry effectively disappeared, and a new class, the "rural gentry", emerged. These middle-class farmers, midway between the large commercial farms and smallholdings, were able to significantly increase their earnings by producing cash crops such as coffee, tobacco, sugar, and grapes, which were not labour-intensive and which fetched high prices at urban markets. Animal husbandry also increased, with increasingly large swathes of land being turned over to sheep and cattle farming.

Infrastructure

Mass migration to towns, urban growth, and the increasingly urban demand for rural produce prompted the development of South Africa's transport and communications infrastructure. Railways were greatly expanded to link towns to each other and to the countryside, and ports such as Durban and Cape Town were expanded to cope with increasing immigration and commercial activity, greatly stimulated development in South Africa.