The Anglo American Corporation began operations in 1917 with £1 million in initial capital, backed by American and British financial support. This entity served as the primary vehicle for Ernest Oppenheimer to consolidate his influence over the South African mining sector, fundamentally altering the global reach and structural organization of the diamond and gold industries throughout the twentieth century.
Early Career in London and Kimberley
Born in Friedberg in 1880, Oppenheimer entered the workforce at age 17 at Dunkelsbuhler & Company, a London diamond brokerage. His performance led to his relocation to Kimberley in 1902 to serve as a buyer for the firm. Between 1912 and 1915, he held the office of mayor in Kimberley. During his tenure, he facilitated the recruitment of manpower for the Kimberley Regiment.
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In 1917, Oppenheimer partnered with American engineer William Lincoln Honnold to establish the Anglo American Corporation. The project received backing from J. P. Morgan. The firm acted as an industrial force in the region, managing various mining interests including the Brakpan Mines, Springs Mines, and Transvaal Coal Trust. Oppenheimer served as a permanent director and chairman of this corporation until 1953.
Consolidation of De Beers
Oppenheimer expanded his influence by acquiring diamond mines in South West Africa in 1919, creating competition for the established De Beers monopoly. By 1927, he secured control of the De Beers empire previously held by Cecil Rhodes. He officially assumed the chairmanship of De Beers in 1929. His leadership involved significant scrutiny regarding industrial diamond distribution and antitrust concerns.
Public Service and Personal Life
Beyond his mining activities, Oppenheimer served in the House of Assembly representing Kimberley from 1924 until 1938. Knighted in 1921, he also received an appointment as a Knight of the Most Venerable Order of the Hospital of St John of Jerusalem in 1952. Though born into a Jewish family, he later converted to Anglicanism.
Fast facts
- Born: 1880, Friedberg
- Died: 1957, Johannesburg
- Primary occupations: Businessperson, financier, politician
- Notable role: Mayor of Kimberley, 1912-1915
- Knighted: 1921
- Key acquisition: De Beers, 1927
- Succeeded by: Harry Oppenheimer
Questions readers ask
What was the significance of the Anglo American Corporation?
Founded by Oppenheimer in 1917 with £1 million in capital, it became a central financial and mining conglomerate in the Union of South Africa.
What happened to his business after he died?
Following his death in 1957, his son, Harry Oppenheimer, took over the business.
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