The diamond magnate Barney Barnato transitioned from performing in London music halls as the Barnato Brothers to controlling significant segments of South African mining in the 1870s. By acquiring extensive claims in Kimberley, he became a formidable commercial rival to Cecil Rhodes, eventually securing the largest stake in the newly formed De Beers Consolidated Mines.
Early Ventures and Kimberley
Born Barnet Isaacs in 1851 in the London Borough of Tower Hamlets, he was educated at JFS. After leaving school, he worked in his father's business and performed as a stage entertainer before moving to the Cape Colony in 1873. Upon reaching Kimberley, he invested in four mining claims. He later entered a high-stakes competition with Cecil Rhodes for the acquisition of a major mining company, eventually forcing a negotiation that left him with a substantial interest in the Kimberley Central Diamond Mining Company.
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The merger between Kimberley Central and De Beers Diamond Mining Company established De Beers Consolidated Mines, with Barnato emerging as the largest shareholder. In 1889, his stake was bought out for over five million pounds. Following this success, he moved to Johannesburg in 1888 to pivot toward gold mining. He founded the Johannesburg Consolidated Investment Company in 1889 and aggressively acquired various gold mining interests throughout the region.
Financial Fluctuations and Death
Barnato experienced significant wealth volatility during the 1890s, doubling his fortune during the 1894–95 gold mining boom before suffering heavy losses in the 1896 market collapse. In 1897, while traveling by sea to England, he died after falling overboard near the island of Madeira. The circumstances of his death remain a subject of debate, with theories ranging from suicide and accidental falls to potential involvement by criminal figures like Karl Frederick Kurtze, also known as Ludwig von Veltheim.
Fast facts
- Born: 21 February 1851, London Borough of Tower Hamlets
- Died: 14 June 1897, near Madeira
- Education: JFS
- Citizenship: United Kingdom and South Africa
- Key Business: De Beers Consolidated Mines
- Major Company Founded: Johannesburg Consolidated Investment Company
- Burial Site: Willesden Jewish Cemetery
- Occupation: Entrepreneur and politician
Questions readers ask
How did Barney Barnato enter the mining industry?
He moved to the Cape Colony in 1873 and purchased four diamond claims in Kimberley alongside his brother Harry.
What happened to his gold mining fortune?
He expanded his wealth significantly between 1894 and 1895 but lost most of it during a major share market collapse in 1896.
Was his death ever resolved?
No, his death remains a subject of speculation involving claims of suicide, accidental drowning, or potential foul play by an associate.
Achievements
- Educated at JFS
