De Beers has announced this week a set of measures to streamline its portfolio, in addition to general organisational changes, as it deals with changing industry conditions.
Since 2024, the company has focused on streamlining in order to reduce costs, divest non-core assets, and prioritise investment in value-additive activities. This has included removing over US$100 million ($143 million) in annual overhead costs, the sale or closure of a number of non-core assets, and capital and cost reconfigurations.
De Beers is doubling down on the natural diamond market, investing in significant marketing to support the growth of the industry. It notes that while the market has seen downturns in recent years, natural diamond sales returned to growth numbers in 2025.
The company has now announced a pause in production at the Venetia mine in South Africa for an initial period of two years, to focus on reducing costs while reworking capital expenditure on other projects.
De Beers says significant critical infrastructure investment is needed for Venetia in order to enhance the capacity and efficiency of the mine.
The production pause follows the company’s decision earlier this year to pause the Tuzo phase three expansion project at the Gahcho Kué mine in Canada.
CEO Al Cook says that the changes come as De Beers focuses on business resilience in the near-term while supporting long-term value creation.
“We recognise the protracted challenging conditions as the diamond industry evolves, though we are encouraged by signs of consumer demand growth in the US and beyond, particularly in higher quality diamonds,” Cook says.
“Global rough diamond supply is falling, bringing more support to the market. The changes we are making to our business are focused on underpinning our efficiency now and into the future, favourably positioning De Beers in its leadership role.”
In an interview with BNN Bloomberg, Gracelin Baskaran, founding director of the critical minerals security program at the Center for Strategic and International Studies (CSIS) notes that the shutdown will be significant for South Africa. Venetia accounts for around 4,400 jobs and 40% of South Africa’s diamond output.
Baskaran notes that the weakness in the diamond industry is demand-driven, with the lab-grown industry growing significantly. She explains that 10 years ago, 1% of diamond sales were from lab-grown diamonds, while today, that figure accounts for around 20% of sales and is growing.
Amid this news, Anglo American (LSE:AAL) has announced that it has found a preferred buyer for its stake in De Beers.
Currently the majority stakeholder in De Beers, Anglo put De Beers up for sale in May 2024 amid falling diamond prices and the growing popularity of lab-grown or synthetic diamonds.
The business has attracted interest from the governments of Botswana, which owns a 15% stake, Namibia, and Angola, in addition to private buyers.
Anglo’s spokesperson says the company is progressing the sale process and will provide updates as an appropriate time.
Write to Amy Rotman at Mining.com.au
Images: De Beers
