<P> Due to a history of corruption and maladministration in the South African mining sector, ANC secretary - general Gwede Mantashe announced at the beginning of 2013 that mining companies misrepresenting their intentions could have their licences revoked . </P> <P> Diamond and gold discoveries played an important part in the growth of the early South African economy . A site northeast of Cape Town was discovered to have rich deposits of diamonds, and thousands rushed to the area of Kimberley, diamond mine . In an attempt to profit from the discovery . The British later annexed the region of Griqualand West, an area which included the diamond fields . In 1868, the republic attempted to annex areas near newly discovered diamond fields, drawing protests from the nearby British colonial government . These annexations later led to the First Boer War of 1880 - 1881 . </P> <P> Gold was discovered in the area known as Witwatersrand, triggering what would become the Witwatersrand Gold Rush of 1886 . Like the diamond discoveries before, the gold rush caused thousands of foreign expatriates to flock to the region . This heightened political tensions in the area ultimately contributing to the Second Boer War in 1899 . Ownership of the diamond and gold mines became concentrated in the hands of a few entrepreneurs, largely of European origin, known as the Randlords . South Africa's and the world's biggest diamond miner, De Beers, was funded by baron Nathaniel Mayer Rothschild in 1887, and Cecil Rhodes became the Founding Chairman of the board of directors in 1888 . Cecil Rhodes' place was later taken by sir Ernest Oppenheimer, co-founder of the Anglo - American Corporation with J.P. Morgan . </P> <P> The gold mining industry continued to grow throughout much of the early 20th century, significantly contributing to the tripling of the economic value of what was then known as the Union of South Africa . In particular, revenue from gold exports provided sufficient capital to purchase much - needed machinery and petroleum products to support an expanding manufacturing base . </P>

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