The village of Cyphergat was the headquarters of the Cyphergat Coal Mining Co (Ltd). The railway line linking Sterkstroom to Stormberg Junction via Cyphergat Station was opened on 15 October 1883.
It has been suggested by Historians, that De Beers issued compound tokens to to natives working in the coal mine as payment and that they were used in a similar way to De Beers tokens elsewhere.