JCI Limited
Encyclopedia
JCI or Johannesburg Consolidated Investment Co. Ltd. was founded in 1889 by the British entrepreneur Barney Barnato
. JCI was a major force in South African
mining for over 100 years. Using his investments in the Kimberley diamond fields, particularly his 25% share in De Beers
, Barnato foresaw the value of and invested in the potential of the Witwatersrand
gold
mines. At first he bought small but rich mines near Germiston – the New Primrose, named after his daughter, and others in the same region.
In 1913 JCI bought the Randfontein
Estates Gold Mining Company, which was a fabulously rich mine, from Sir J.B. Robinson. At the peak of its production Randfontein was equipped with 600 stamp mill
s, the roar of which could be heard in Johannesburg
. Randfontein Estates was an extraordinarily rich mining property, and in the 1950’s was a pioneer of uranium
production. During the 1930’s Randfontein was the largest gold producer in South Africa, if not the world.
JCI was also involved with numerous mining ventures – New State Mines at Brakpan, Modder Deep Mines at Benoni
, Van Dyk Mines at Benoni
. In the 1960’s Randfontein was virtually closed down, and mining was developed at Western Areas on the other side of the shallow valley, but in the 1970’s new deposits were discovered to the south of Randfontein and the Cooke Section was opened up in 1976. Cooke produced gold and uranium, the uranium being destined for the Koeberg Nuclear Power Station
fuel.
In addition to the gold mines, 25% of De Beers and a controlling interest
in Rustenburg Platinum Holdings, the world’s largest platinum
producer, JCI owned large industrial and property holdings, including the Houghton
Estate in northern Johannesburg, and substantial shareholdings in SA Breweries, Toyota South Africa, Lennings Industrial, etc, and was long a target of developers who lusted after the property holdings. Anglo American Corporation purchased a 52% holding in JCI, agreeing to protect the company against predatory takeovers, and this situation continued until 1994.
JCI installed a technically advanced Precious Metals Refinery at Rustenburg, which processed Platinum Group
metals totally in South Africa, and built a ferrochrome
smelter at Lydenburg
which was the first in South Africa to directly smelt chromite
fine ore.
In the late 1980’s JCI started development of an ultra deep mine to the south of Western Areas, South Deep. The ownership of South Deep has now devolved to Goldfields, and is still being developed as one of the largest low grade gold deposits in the world.
In 1995 the majority shareholder, Anglo American Corp, decided to offer JCI to the new political dispensation in South Africa as a Black Economic Empowerment
vehicle. A new Chairman, Mzi Khumalo
, took over the mining side, whilst the property and investment side was separated and morphed into Johnnic Communications. The platinum interests were moved into Anglo American Platinum, Amplats.
JCI was always at the forefront of technical development – trackless mining, ferrochrome processing (CMI, Lydenburg), computer control of process plants, treatment of refractory gold ores – to name a few areas where pioneering work was done.
, John Stratton, and others in their roles as Chairman and directors of the company respectively defrauded and conspired to defraud the company of some 7.6 billion rand. Additionally, it was alleged that John Stratton then procured Brett Kebble's murder, with which Glenn Agliotti has been charged.
In August 2010, an American company Hemispherx was awarded $188 Million Judgment Against JCI by Court in Miami, alleging that JCI wrongly obtained confidential information as part of an effort to devalue Hemispherx’s stock price and gain control, according to court papers.
Barney Barnato
Barney Barnato , born Barnet Isaacs, was a British Randlord, one of the entrepreneurs who gained control of diamond mining, and later gold mining, in South Africa from the 1870s.-Background:...
. JCI was a major force in South African
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
mining for over 100 years. Using his investments in the Kimberley diamond fields, particularly his 25% share in De Beers
De Beers
De Beers is a family of companies that dominate the diamond, diamond mining, diamond trading and industrial diamond manufacturing sectors. De Beers is active in every category of industrial diamond mining: open-pit, underground, large-scale alluvial, coastal and deep sea...
, Barnato foresaw the value of and invested in the potential of the Witwatersrand
Witwatersrand
The Witwatersrand is a low, sedimentary range of hills, at an elevation of 1700–1800 metres above sea-level, which runs in an east-west direction through Gauteng in South Africa. The word in Afrikaans means "the ridge of white waters". Geologically it is complex, but the principal formations...
gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
mines. At first he bought small but rich mines near Germiston – the New Primrose, named after his daughter, and others in the same region.
In 1913 JCI bought the Randfontein
Randfontein, Gauteng
Randfontein is a gold mining town in western Gauteng, South Africa, 45 km west of Johannesburg. With the Witwatersrand gold rush in full swing, mining financier JB Robinson bought the farm Randfontein and, in 1889, floated the Randfontein Estates Gold Mining Company...
Estates Gold Mining Company, which was a fabulously rich mine, from Sir J.B. Robinson. At the peak of its production Randfontein was equipped with 600 stamp mill
Stamp mill
A stamp mill is a type of mill machine that crushes material by pounding rather than grinding, either for further processing or for extraction of metallic ores. Breaking material down is a type of unit operation....
s, the roar of which could be heard in Johannesburg
Johannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
. Randfontein Estates was an extraordinarily rich mining property, and in the 1950’s was a pioneer of uranium
Uranium
Uranium is a silvery-white metallic chemical element in the actinide series of the periodic table, with atomic number 92. It is assigned the chemical symbol U. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons...
production. During the 1930’s Randfontein was the largest gold producer in South Africa, if not the world.
JCI was also involved with numerous mining ventures – New State Mines at Brakpan, Modder Deep Mines at Benoni
Benoni, Gauteng
Benoni is a city with 654,509 inhabitants on the East Rand in the South African province of Gauteng. Since 2000, it has been part of the Ekurhuleni Metropolitan Municipality.- History :...
, Van Dyk Mines at Benoni
Benoni, Gauteng
Benoni is a city with 654,509 inhabitants on the East Rand in the South African province of Gauteng. Since 2000, it has been part of the Ekurhuleni Metropolitan Municipality.- History :...
. In the 1960’s Randfontein was virtually closed down, and mining was developed at Western Areas on the other side of the shallow valley, but in the 1970’s new deposits were discovered to the south of Randfontein and the Cooke Section was opened up in 1976. Cooke produced gold and uranium, the uranium being destined for the Koeberg Nuclear Power Station
Koeberg nuclear power station
Koeberg nuclear power station is the only nuclear power station in South Africa and the entire African continent. It is located 30 km north of Cape Town, near Melkbosstrand on the west coast of South Africa. Koeberg is owned and operated by the country's only national electricity supplier, Eskom...
fuel.
In addition to the gold mines, 25% of De Beers and a controlling interest
Controlling interest
Controlling interest in a corporation means to have control of a large enough block of voting stock shares in a company such that no one stock holder or coalition of stock holders can successfully oppose a motion...
in Rustenburg Platinum Holdings, the world’s largest platinum
Platinum
Platinum is a chemical element with the chemical symbol Pt and an atomic number of 78. Its name is derived from the Spanish term platina del Pinto, which is literally translated into "little silver of the Pinto River." It is a dense, malleable, ductile, precious, gray-white transition metal...
producer, JCI owned large industrial and property holdings, including the Houghton
Houghton
-Buildings:* Houghton Hall, a country house in Norfolk, England * Houghton Hall, East Riding of Yorkshire, a stately home in Yorkshire, England* Houghton House, a ruined house in Bedfordshire, England-Australia:...
Estate in northern Johannesburg, and substantial shareholdings in SA Breweries, Toyota South Africa, Lennings Industrial, etc, and was long a target of developers who lusted after the property holdings. Anglo American Corporation purchased a 52% holding in JCI, agreeing to protect the company against predatory takeovers, and this situation continued until 1994.
JCI installed a technically advanced Precious Metals Refinery at Rustenburg, which processed Platinum Group
Platinum group
The platinum group metals is a term used sometimes to collectively refer to six metallic elements clustered together in the periodic table.These elements are all transition metals, lying in the d-block .The six...
metals totally in South Africa, and built a ferrochrome
Ferrochrome
Ferrochrome is an alloy of chromium and iron containing between 50% and 70% chromium.The ferrochrome is produced by electric arc melting of chromite, an iron magnesium chromium oxide and the most important chromium ore. Most of the world's ferrochrome is produced in South Africa, Kazakhstan and...
smelter at Lydenburg
Lydenburg
Lydenburg is a town in Mpumalanga, South Africa. The town is slated to be renamed Mashishing, according to an announcement made on June 30, 2006 by the South African Minister of Arts and Culture, Pallo Jordan. Lydenburg is situated on the Sterkspruit/Dorps River tributary of the Olifants River at...
which was the first in South Africa to directly smelt chromite
Chromite
Chromite is an iron chromium oxide: FeCr2O4. It is an oxide mineral belonging to the spinel group. Magnesium can substitute for iron in variable amounts as it forms a solid solution with magnesiochromite ; substitution of aluminium occurs leading to hercynite .-Occurrence:Chromite is found in...
fine ore.
In the late 1980’s JCI started development of an ultra deep mine to the south of Western Areas, South Deep. The ownership of South Deep has now devolved to Goldfields, and is still being developed as one of the largest low grade gold deposits in the world.
In 1995 the majority shareholder, Anglo American Corp, decided to offer JCI to the new political dispensation in South Africa as a Black Economic Empowerment
Black Economic Empowerment
Black Economic Empowerment is a programme launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups economic opportunities previously not available to them...
vehicle. A new Chairman, Mzi Khumalo
Mzi Khumalo
Mzi Godfrey Khumalo is a South African businessman and mining entrepreneur.He has held the following positions :-* Chairman - Mintek * Director - Ridge Mining...
, took over the mining side, whilst the property and investment side was separated and morphed into Johnnic Communications. The platinum interests were moved into Anglo American Platinum, Amplats.
JCI was always at the forefront of technical development – trackless mining, ferrochrome processing (CMI, Lydenburg), computer control of process plants, treatment of refractory gold ores – to name a few areas where pioneering work was done.
Alleged Fraud
It has been alleged by Four Corners that Brett KebbleBrett Kebble
Roger Brett Kebble was a South African mining magnate with close links to factions in the ruling political party, the African National Congress. He was shot to death in 2005 by unknown assailants....
, John Stratton, and others in their roles as Chairman and directors of the company respectively defrauded and conspired to defraud the company of some 7.6 billion rand. Additionally, it was alleged that John Stratton then procured Brett Kebble's murder, with which Glenn Agliotti has been charged.
In August 2010, an American company Hemispherx was awarded $188 Million Judgment Against JCI by Court in Miami, alleging that JCI wrongly obtained confidential information as part of an effort to devalue Hemispherx’s stock price and gain control, according to court papers.