History of Cape Colony From 1870 To 1899 - Diamonds and Railways

Diamonds and Railways

Another event of considerable commercial importance to the Cape Colony, and indeed to all of South Africa, was the amalgamation of the diamond-mining companies which was chiefly brought about by Cecil Rhodes, Alfred Beit and "Barney" Barnato in 1889. One of the principal and most beneficial results of the discovery and development of the diamond mines was the great impetus that it gave to railway expansion. Lines were opened up to Worcester, Beaufort West, Graham’s Town, Graaff Reinet, and Queenstown. Kimberley was reached in 1885. In 1890 the line was extended northwards on the western frontier of the Transvaal as far as Vryburg in Bechuanaland. In 1889, the Free State entered into an arrangement with the Cape Colony whereby the main trunk railway was extended to Bloemfontein, the Free State receiving half the profits. Subsequently the Free State bought at cost price the portion of the railway in its own territory. In 1891, the Free State railway was still farther extended to Viljoen’s Drift on the Vaal River, and in 1892 it reached Pretoria and Johannesburg.