Why were Black migrant mineworkers housed in compounds near Johannesburg’s mines?

Black migrant mineworkers in Johannesburg were housed in compounds primarily to facilitate their control and to reduce overhead costs for the mining companies.1

The gold-mining industry in the region was characterized by deep-level, intensive operations that required significant capital investment. To maintain profitability, mining companies colluded to minimize competition over labor and keep wages low. By housing Black migrant workers in these compounds, mine owners could effectively manage the workforce and minimize expenses, establishing a system of labor recruitment and accommodation that deeply influenced the country's social and economic structures. These compounds, often consisting of massive, single-sex hostels, were situated near the mines or on the periphery of Black townships to ensure the workers remained close to their place of employment.12