Why did mining companies seek to keep Black labour costs low in Johannesburg?

Mining companies in Johannesburg sought to keep Black labour costs low primarily to ensure the profitability of the gold industry. The gold deposits of the Witwatersrand were extremely low-grade, requiring massive amounts of ore to be mined and processed to extract small quantities of gold. Because the price of gold was internationally fixed, mining companies faced a perennial challenge in maintaining profitability as mining operations moved deeper underground, which significantly increased operational costs.12

To address these economic pressures, mining houses formed the Chamber of Mines to rationalize production and suppress competition for labour. They implemented a system of migrant labour and utilized pass laws and other discriminatory measures to force Black workers into employment at low wages. By housing workers in compounds, companies further reduced overhead costs and maintained strict control over the workforce. This systemic exploitation was fundamentally unjust, as it relied on the deliberate impoverishment of Black workers to sustain the financial interests of the mining industry.123