Global Diamond Industry Shows Signs of Recovery: What Is Driving the Rebound?

 

After three challenging years marked by geopolitical disruption, shifting trade routes, and weakened consumer confidence, the global diamond industry is beginning to stabilise and recover. While price volatility persists in certain segments, demand is gradually rebuilding, particularly across the world’s primary luxury markets. Industry professionals broadly agree that the recovery remains uneven, but the direction is clear: a slow yet meaningful turnaround is underway.

Senior figures within the international jewellery trade point to improving economic sentiment as a key catalyst behind renewed interest in diamonds. Changing consumer behaviour is also playing a central role. Natural diamonds continue to dominate global engagement ring sales, retaining their status as the benchmark for long-term value and emotional significance. However, competition from lab-grown diamonds is intensifying, and the market share gap is narrowing.

In major Western markets, lab-grown diamonds are gaining traction, particularly among younger buyers who place greater emphasis on size, clarity, and price accessibility than on tradition. This generational shift is reshaping purchasing decisions and influencing how value is assessed at the point of sale.

Pricing dynamics underscore this transformation. Over the past year, prices for smaller natural diamondsespecially those under one carat have experienced notable declines. At the same time, lab-grown diamond prices have fallen even further, driven by rapid technological advancements and expanding production capacity. Together, these opposing movements have redefined the competitive landscape, prompting consumers to compare value propositions more closely than ever before.

While challenges remain, the combination of stabilising demand, evolving consumer preferences, and market-driven price realignment suggests the diamond industry has entered the early stages of recovery, with long-term implications for both natural and lab-grown sectors.

Source: DCLA

FOREVERMARK DIAMOND JEWELLERY CELEBRATES THE GRAND OPENING OF DE BEERS GROUP’S LARGEST FLAGSHIP STORE IN MUMBAI

 

Mumbai, 8th January 2026: Forevermark Diamond Jewellery marked a defining milestone in its India journey with the grand opening of the world’s largest flagship store by De Beers Group in Mumbai. Located at Crest Link, Khar West, at the heart of Linking Road, the nearly 5,000 sq. ft. store reflects the brand’s long-term commitment to Indian consumers seeking meaningful, design-led luxury.

The marquee launch was celebrated with an exclusive evening that brought together Mumbai’s most influential tastemakers, jewellery connoisseurs, creative voices, socialites, celebrities, and leading creators. Hosted within the flagship itself, the event offered guests a first glimpse into the brand’s stunning universe, featuring a fashion showcase and immersive experiences that seamlessly blended craftsmanship with contemporary style.

The evening unfolded with enthralling performances including live music and a spectacular fashion showcase, complemented by interactive installations and AI integrations around the Mine to Finger journey, branded photo moments, innovative tarot readings and displays of the new collection, creating an atmosphere of modern luxury and timeless elegance. Guests explored the store’s full portfolio, from refined everyday diamond jewellery to statement and high jewellery pieces, all designed to celebrate life’s most meaningful moments.

Every Forevermark Diamond Jewellery piece is crafted from some of the world’s most beautiful, rare, and responsibly sourced diamonds, each bearing a unique inscription, a promise of authenticity, integrity, and exceptional quality. This philosophy comes to life with the launch of the all-new Forevermark Icon Collection, inspired by the North Star as a symbol of clarity, direction, and confidence. It features versatile everyday diamond jewellery styles, striking statement pieces, and iconic designs across rings, earrings, necklaces, and bracelets.

This collection launch is also accompanied by the brand’s new campaign titled ‘My Guiding Light’ that celebrates four iconic women who represent modern Indian excellence across diverse fields. Manu Bhaker, professional shooter and double Olympic medallist; Diana Penty, actor; Masaba Gupta, designer, actor, and entrepreneur; and Princess Gauravi Kumari of Jaipur, social entrepreneur, each embody individuality, strength, and purpose, sharing their personal stories and perspectives through mini digital videos on Instagram. Together, they reflect the belief that confidence and direction come from within, perfectly aligning with the spirit of the Icon Collection.

All four of them were also in attendance at the event, bringing glamour and gravitas to the evening and reinforcing the store’s position as a landmark destination in Mumbai’s luxury retail landscape. The evening was further elevated by the presence of Mumbai Indian Cricketers Amelia Kerr, Milly Illingworth and Sajeevan Sajana, whose stories of resilience, precision and perseverance echo the enduring strength of natural diamonds.

Commenting on the launch, Sandrine Conseiller, CEO, Brands & Diamond Desirability, De Beers Group, said: “India is central to the future of the natural diamond category. The opening of our largest Forevermark store in Mumbai reflects both the strength of consumer response we are seeing and our long-term confidence in the market. As luxury consumption in India becomes more considered and value-driven, Forevermark is well positioned to build relevance through trust, craftsmanship, and enduring desirability.”

Shweta Harit, Senior Vice President, De Beers Group and CEO, Forevermark, added: “Mumbai marks an important next chapter in Forevermark’s India story. Following the encouraging response to our New Delhi store, this flagship reflects the scale of opportunity ahead. As our largest store globally, it brings together our brand vision, retail ambition, and commitment to the Indian consumer. This opening is also a key step toward our longer-term plan of building a network of 100 Forevermark stores in India by 2030.”

The new Mumbai flagship blends Forevermark’s contemporary international design with local sensibilities. The spacious store offers an immersive experience, showcasing everyday diamond jewellery, statement and high jewellery pieces, and iconic designs in a setting that reflects the brand’s commitment to thoughtful, experience-led luxury.

About Forevermark Diamond Jewellery

Forevermark Diamond Jewellery is the signature diamond jewellery brand from De Beers Group, the world’s leading diamond company, a name synonymous with more than 135 years of expertise and heritage in the world of diamonds. Every Forevermark Diamond Jewellery creation celebrates life’s most meaningful moments, featuring natural diamonds that are beautiful, rare and responsibly sourced. Every Forevermark diamond bears a unique inscription, ensuring authenticity and making each piece deeply personal.

Formed over billions of years deep within the Earth, Forevermark diamonds are hand-selected for their exceptional quality, graded beyond the 4Cs in the pursuit of absolute beauty. Responsibly sourced and carefully cared for along their journey, they reflect the brand’s commitment to creating a positive impact on the people and places its diamonds come from. Expertly crafted by master designers, Forevermark Diamond Jewellery combines modern artistry with timeless elegance. Each piece elevates the brilliance of its diamond while embodying the brand’s enduring values of beauty, rarity, and responsibility.

Namibia’s Diamond Output Hit by Price Drops and Lab Growns

Namibia’s rough diamond production fell by 3.5 per cent year-on-year during Q3 2025, as prices fell, demand for lab growns increased and inventories grew.

The Bank of Namibia said in its quarterly bulletin that the country’s output was 442,000 carats, down by 15.3 per cent on the previous quarter, valued at N$ 2.41bn (USD 147.3m).

“The decrease stemmed from planned actions to lower production at Debmarine Namibia on the back of a combination of downside pressures, including the falling price due to rising demand for lab-grown diamonds and high inventory levels.”

It said rough diamond revenue for Q3 fell by 19 per cent year-on-year and 17.4 per cent compared with the previous quarter.

The bank noted “persistently soft consumer demand in key markets such as China and the United States” as well as oversupply of diamonds by some major producers.

Namibia’s diamond sector is a cornerstone of its economy, historically accounting for 7 to 10 per cent of its GDP and 30 per cent of export earnings. Around three quarters of diamonds are recovered from the seabed by Debmarine’s fleet of ships.

Source: DCLA

BHP Walks Away from Last-Ditch Bid for Anglo American

Mining giant BHP has walked away from a last-ditch attempt takeover bid for Anglo American, parent company of De Beers.

It announced on Sunday (23 November) that it was “no longer considering a combination of the two companies”.

Melbourne-based BHP made hostile bids for Anglo in April and May 2024, both of which failed.

The move prompted loss-making Anglo to start streamlining its operations, to divest some unprofitable activities, including its diamond division, De Beers and to focus on copper and other money-making assets.

Anglo had hoped to complete the sale of De Beers by the end of this year, but despite intense interest, from the Botswana government among others, that has yet to happen.

BHP renewed its bid primarily to disrupt Anglo American’s planned $53 billion merger with Canadian miner Teck Resources, which is expected to go ahead on 9 December

Source: dcla

Angola Makes a Bid for De Beers, Reshaping the Global Diamond Landscape

De Beers Global Sightholder Sorting a parcel of rough diamonds over a light box using a hand loupe.

Angola has signalled its intention to buy back the 85% stake in De Beers currently held by Anglo American, in a move that has immediately captured global industry attention. The proposal, made through Angola’s state-owned diamond company Endiama, comes at a time when the diamond sector has struggled to regain momentum after the downturn that began in 2022.

The announcement positions Angola decisively on the world stage. The country produced 10.7 million carats in the first nine months of the year and is targeting a record 14.8 million carats by 2025. According to the Kimberley Process, Angola’s expected 14 million carats in 2024 place it above Botswana in rough-diamond output for the first time in two decades. This surge, driven by the vast Catoca open-pit mine and other major deposits, underscores Angola’s long-term strategy of advancing local beneficiation and resource industrialisation.

Against this backdrop, Endiama has formally expressed interest in acquiring Anglo American’s controlling stake as the parent company restructures and divests assets following its 2024 strategic review. Should the transaction proceed, it would mark one of the most consequential ownership shifts in the diamond industry’s modern history.

Complicating the landscape is Botswana’s position. The country currently holds the remaining 15% stake in De Beers and announced in September its intention to increase its shareholding to more than 50%. Botswana relies heavily on diamonds, which account for roughly one-third of government revenue and 80% of exports, while Angola is seeking to reduce dependence on oil through expansion of its mining sector.

The implications of an Angolan takeover are far-reaching. De Beers remains one of the world’s most influential suppliers of rough diamonds, with 2024 revenues of US$2.7 billion and a valuation near US$4.9 billion. Its sales cycles, production planning, and market guidance shape between one-quarter and one-third of global rough supply, giving the company significant influence over pricing, availability, and the high-end jewellery pipeline.

A shift in control could potentially redirect more value-added processes to Africa, including sorting, cutting, and polishing — areas historically dominated by centres outside the continent. Increased localisation could boost employment, strengthen regional economies, and reshape supply-chain dynamics at a time when Botswana has reduced output and seen fiscal pressure rise, while Angola’s production profile continues to accelerate.

However, questions remain. Angola has stated that the acquisition would not be funded through its national budget, leaving the structure and financing mechanism yet to be clarified. Diplomatic tension with Botswana is another risk factor, particularly if competing bids emerge or national interests collide.

On a global scale, the outcome could introduce both opportunity and volatility. Greater African control over rough supply may support local markets, but the broader diamond industry continues to face challenges, including subdued demand, geopolitical instability, and mounting competition from lab-grown diamonds, which have disrupted consumer expectations and pricing patterns.

If Angola’s bid succeeds, it would mark a historic realignment of influence within the natural-diamond sector — one with the potential to reshape trade flows, pricing dynamics, and the strategic balance of power for years to come.

Source: DCLA

De Beers Rough Sales Triple in Q3

De Beers sold $700m worth of rough diamonds across its two sights in the three months to 30 September – more than tripling the $213m recorded during the same period last year.

In the third quarter of 2024, the company held only one sight, having cancelled the August session due to weak demand.

During the Q3 2025 sights, specific assortments were offered at discounted prices. De Beers no longer provides sight by sight updates.

It noted that trading conditions “continued to be challenging,” although consumer demand for natural diamond jewelry remained broadly stable, particularly in the US.

The company said progress seen in the first half of 2025 was hindered by newly imposed US tariffs on diamond imports from India, according to its production report published on 28 October.

However, it welcomed the recent exemption granted for natural diamond imports from countries participating in “aligned partner” trade agreements, announced last month.

Meanwhile, quarterly production increased year-on-year by 38 per cent, to 7.7m carats, although it is down 5 per cent for the year to date (17.9m carats).

Production guidance for 2025 is unchanged at 20 to 23m carats.

Source: IDEX

 De Beers Sale: Botswana Plus One or Two Buyers

Anglo American CEO Duncan Wanblad says the sale of De Beers will involve one or two shortlisted buyers alongside the government of Botswana, rather than the usual two-round selection process.

Wanblad (pictured) told the Financial Times Metals and Mining Summit (held in London and virtually): “This isn’t going to be the classical first round, second round sale process that you would ordinarily receive for businesses of this type.

“What we are planning to do is now move into the second round with one or two of the potential selected buyers that came through the first round with us and work with the government of Botswana in finalising an agreement that works not only for the potential buyers, but also for Botswana.”

Anglo is expected to raise $3bn to $4bn from the sale of its 85 per cent stake in the loss-making diamond miner. The remaining 15 per cent is owned by the government of Botswana, which wants to secure a majority holding, and to do so by the end of this month.

Angola’s state-owned mining company Endiama has submitted a fully financed offer for a minority stake, as part of a pan-African proposal, which would include Botswana, Namibia, and South Africa.

Former De Beers CEOs Bruce Cleaver and Gareth Penny are leading bidding consortia and there is speculation about interest from Qatari and other Gulf investors.

Source: DCLA

Okavango: “It wasn’t an Emergency Tender”

Okavango, Botswana’s state-owned diamond company, says its planned sale of 1m rough carats last month was not “an emergency tender”.

And it says the fact that it didn’t sell a single stone didn’t mean it was a failure. Rather, it was the result of a “deliberate and prudent decision to withhold certain goods”.

The “closed” tender on 25 September was reportedly aimed at raising revenue for the government (something the company denies) which had been severely hit by the slump in demand for natural diamonds. But buyers weren’t prepared to pay the reserve prices.

“Withholding goods in the short term ensures better outcomes for the market,” Okavango Diamond Company’s managing director Mmetla Masire (pictured) said in a statement.

“We will not join the race to the bottom on prices, our focus is on protecting the integrity and enduring value of Botswana’s diamonds.”

It said the tender was scheduled back in July and was part of regular sales management, not a last-minute revenue-raising emergency.

The ad hoc tender was a marked departure from the norm. ODC usually holds about 10 scheduled online spot auctions annually for registered buyers, typically raising at least $60m.

The company now sells 30 per cent of the rough output from Debswana, the 50/50 joint venture between the Botswana government and De Beers.

Source: IDEX

De Beers Launches “Desert Diamonds” – A Bold Campaign Celebrating the Uniqueness of Natural Diamonds

De Beers has unveiled its largest natural diamond campaign in over a decade, reaffirming the beauty, rarity, and authenticity of natural diamonds in an era where lab-grown stones are increasingly prevalent.

The new campaign, titled “Unlike Anything,” introduces Desert Diamonds — a collection inspired by the natural hues of the desert, showcasing warm, earthy tones that celebrate individuality and the timeless connection between nature and human emotion.

As mass-produced, lower-cost lab-grown diamonds continue to gain market share, De Beers’ message is clear: natural diamonds remain unmatched — each one a product of geological wonder, billions of years in the making, and entirely unique.

According to De Beers, research found that 90% of consumers expressed interest in purchasing a Desert Diamond as a distinctive expression of style and a symbol of connection with nature. The campaign positions these desert-inspired shades as markers of authenticity, highlighting how the nuances in colour reflect the natural beauty and individuality of each stone.

“With Desert Diamonds, the ancient sands of time meet today’s zeitgeist for authentic beauty,” said Sandrine Conseiller, CEO of De Beers Brands. “Natural diamonds are unique and rare – no two are the same. Their colours have been forged by nature and perfected over billions of years.”

The growing appreciation for warmer diamond tones has also been influenced by high-profile figures such as Taylor Swift, whose engagement ring features a vintage old mine-cut diamond with a soft “candlelight glow,” as well as Kim Kardashian and Doja Cat, both of whom have embraced the desert-diamond aesthetic.

Industry analysts note that De Beers’ strategy goes beyond aesthetics. Chandler Mount, founder of Affluent Consumer Research Company, commented:

“Desert Diamonds mark a shift from diamonds as objects to diamonds as identity. De Beers isn’t just selling colour — they’re selling character. This is white space strategy executed with emotional intelligence.”

For the DCLA (Diamond Certification Laboratory of Australia), which upholds the highest standards in natural diamond grading and certification, De Beers’ campaign reinforces a vital message: authentic natural diamonds remain irreplaceable — not only for their enduring beauty, but for the story each stone carries within it.

De Beers and Blockchain: Revolutionising Diamond Tracking – But What About the Other 95%?

The diamond industry has long sought to improve transparency and accountability in how stones are tracked from mine to market. Historically, this relied on paper certificates and manual verification, which were open to forgery, loss, or human error. In recent years, blockchain technology has been introduced as a potential game-changer, offering an immutable digital record of a diamond’s provenance.

From Certificates to Blockchain

Where traditional certificates only provided a snapshot at one point in time, blockchain creates a permanent digital ledger that records every transaction across the supply chain. By using cryptography and decentralisation, platforms like De Beers’ Tracr system provide real-time verification and an unbroken chain of custody for participating diamonds.

For newly mined stones, this represents an important step forward in consumer confidence. Every registered diamond receives a unique digital identity, effectively becoming a “digital twin” of the physical gem. As the diamond travels through cutting, polishing, wholesale, and retail, each transfer is logged and verifiable.

The Limitation: 95% of Diamonds Already in Public Hands

However, while blockchain provides strong assurances for newly mined diamonds, it is important to recognise its limits. More than 95% of all natural diamonds ever mined are already in private hands in jewellery, collections, and across secondary markets. These stones, already in circulation, were never registered on blockchain platforms and therefore cannot be retrospectively traced using this technology.

This means the vast majority of diamonds in existence today remain outside blockchain systems. While blockchain strengthens transparency for future production, it does not solve the challenges of verifying provenance for the overwhelming supply of diamonds already circulating globally.

Why This Matters for Consumers

For buyers and sellers in the secondary market, blockchain is not yet a universal solution. Laboratory expertise remains essential in verifying authenticity, grading, and ensuring consumer protection. At DCLA, as the official CIBJO laboratory for Australia, we recognise the critical role of independent certification. Accurate grading and unbiased reporting remain the foundation of consumer trust particularly for stones not captured by blockchain.

The Future of Diamond Transparency

De Beers’ blockchain initiative is a milestone that may eventually become standard practice across the industry. It addresses many historical weaknesses in tracking systems and aligns with modern consumer demand for ethical sourcing. But for now, blockchain is only part of the answer. The larger challenge remains: how to ensure transparency and trust for the diamonds already in circulation, which make up the majority of the world’s natural supply.

At DCLA, we believe blockchain should be seen as a complementary tool not a replacement for independent laboratory grading and certification. Only by combining robust science with innovative digital systems can the diamond industry achieve true transparency.

Source: DCLA

US Importers to Pay 37% Tariff on Botswana Diamonds

The US is almost certain to go ahead and impose a 37 per cent tariff on all goods imported from Botswana, starting tomorrow 1 August.

That is one of the highest rates of tariff being introduced by the US.

Botswana, the world’s second biggest diamond producer after Russia, has been actively seeking dialogue with the US government to reverse or mitigate the tariff, but without success.

Last month President Duma Boko said tariff imposed on Botswana worsened the already bleak future faced by the diamond industry, and were likely to hinder efforts to grow the African economy.

Most of Botswana’s rough diamonds are sold direct to India, Belgium, and the UAE, but goods worth around $500m annually are exported to the US and will be subject to tariffs. Until now diamonds have been zero-rated.

US importers will have to pay a total of 37 per cent in duties. The reciprocal duty includes the 10 per cent baseline duty that was imposed back in April.

The tariff rules for Botswana, and most other countries, are unlike those for India, where the reciprocal tariff is in addition to the baseline 10 per cent.
US-bound diamonds represent a modest slice of Botswana’s total diamond export business, and most of the country’s diamond revenue is not directly affected by the new US tariff.

It is, however, another blow to a country that relies on diamonds for the vast majority of its export revenue, and that has seen foreign sales halve amid the global downturn.

Source: IDEX

De Beers Expected to Post First-Half Loss

De Beers is expected to report a loss for the first half 2025 despite an uptick in sales during the second quarter.

Sales for H1 were down 13 per cent year-on-year, according to a production report published last Thursday (24 July) by parent company Anglo American. But Q2 showed a 14 per cent increase on the same period in 2024.

De Beers said the last three sights raised $1.185bn, buoyed by the sale of specific assortments at lower margins due to “stock rebalancing initiatives” or discounts on inventory.

So although revenue was higher compared with Q2 2024 ($1.039bn) Anglo said it expects to report negative underlying EBITDA for De Beers in the first half of 2025.

It also noted that “a formal process for the sale of De Beers is advancing, despite the current challenging market conditions”.

Rough diamond trading conditions remained challenged, it said, though improved industry sentiment at the end of the first quarter led to stabilization of polished diamond prices.

“But uncertainty surrounding U.S. tariffs announced in April subsequently slowed polished trading,” it said.

“In contrast to the ongoing challenging trading conditions, consumer demand for diamond jewellery remained broadly stable in the first half of the year.”

Meanwhile production decreased by 36 per cent to 4.1m carats in Q2, reflecting a planned production response to the prolonged period of lower demand. The biggest quarterly drops were in Botswana (-44 per cent) and Canada (-46 per cent). South Africa production actually rose 17 per cent.

Production guidance for 2025 is unchanged at 20 to 23m carats (actual production for 2024 was 24.7m carats) and average per carat price at $94 (actual average for 2024 was $152).

Source: DCLA

De Beers Boss Says Trump’s Diamond Tariffs Do Nothing for U.S. Jobs

The diamond world is facing fresh turbulence following the U.S. government’s decision to impose tariffs on imported diamonds — a move that De Beers CEO Al Cook says does nothing to support American jobs or the economy.

In an exclusive interview with the Financial Times, Cook made it clear: “There are no U.S. diamond mining jobs to protect.” He stressed that these tariffs don’t create employment or benefit the domestic industry — instead, they act as a consumption tax that ultimately punishes the American public.

A Tax on Love, Not a Boost to Industry
The U.S. remains the largest market for diamond jewellery, accounting for about half of global demand, yet it has no significant commercial diamond mining of its own. Every diamond on American soil has been imported — meaning the 10% blanket tariff on all imports, introduced by President Donald Trump, hits the diamond trade especially hard.

Unlike many raw materials that were exempt from the tariffs, diamonds were left out, intensifying the impact on a sector already grappling with declining demand and competition from synthetic alternatives.

According to Cook, the result has been immediate: the trade in natural diamonds briefly ground to a halt. The World Diamond Council echoed his warning, stating that $117 billion in annual revenue and over 200,000 U.S. jewellery jobs could be at risk if diamonds aren’t removed from the tariff list.

“Tariffs on diamonds are not protecting American industry,” Cook emphasised. “They’re just increasing the cost of engagement rings, anniversary gifts, and other sentimental purchases.”

Global Trade Routes Disrupted
What makes diamonds unique is their complex, high-value supply chain. They’re small, easy to transport, and often pass through multiple countries — from mines in Botswana and Angola, to polishing hubs in India, and finally into U.S. jewellery stores. Tariffs disrupt that finely tuned system.

This comes at a particularly sensitive moment for De Beers, as parent company Anglo American prepares for a sale or initial public offering (IPO) of the diamond giant. Despite industry challenges, De Beers is pushing ahead with IPO plans that could launch by early next year.

But the company is feeling the pain too: first-quarter revenue dropped 44% year-on-year to $520 million, reflecting both lower prices and reduced demand. Anglo American has also written down De Beers’ value by $4.5 billion over the past two years.

Hope on the Horizon?
Still, Cook remains optimistic. He believes that over time, U.S. tariffs on diamonds will be lifted. The American government has already granted tariff exemptions for items like smartphones and car components, and Cook is confident natural resources like diamonds will follow suit.

Adding to that optimism are positive developments in U.S.–India trade talks. India polishes over 90% of the world’s diamonds, making it a key link in the supply chain. A favourable trade agreement between Washington and New Delhi could ease the pressure and offer the diamond sector a much-needed reprieve.

In the end, the message from De Beers is clear: Tariffs on diamonds don’t help American workers or industry — they just make life more expensive for consumers. As negotiations progress and the global market adjusts, the diamond world will be watching closely to see whether policymakers come to the same conclusion.

De Beers Sale on Right Track, says Botswana Vice President

Botswana’s vice president says he’s confident that a new buyer will be found for De Beers by the end of the year – and he hinted that the government could substantially increase its own stake, currently 15 per cent.

Ndaba Gaolathe (pictured) said there were countries, funds and companies that all had a “deep interest” in acquiring the 85 per cent share being offered by Anglo American, and he said he was confident they were “on the right track”.

The UK-based miner is selling off De Beers, its diamond division, together with other assets, to focus on copper, its most profitable activity.

Anglo has written down the value of De Beers twice in just over a year, as sales slump and the company descends from profit to loss. It is now valued at $4.1bn, a fraction of the value when Anglo acquired overall control of the company in 2012.

Gaolathe, quoted by Bloomberg News yesterday (30 April) after an interview in Washington, USA, said the Botswana government could increase it take in De Beers (currently 15 per cent) to as much as 50 per cent.

Anglo is seeking to a sale or IPO of De Beers by the end of this year.

Source: IDEX

Botswana economy hit hard as diamond slump deepens

Botswana is bracing for deeper spending cuts and a widening budget deficit as a prolonged slump in diamond demand pressures its economy, even as the country signals interest in expanding its stake in diamond giant De Beers.

Vice President and Finance Minister Ndaba Gaolathe said the government is preparing to make “drastic” fiscal adjustments to stay afloat, including slashing expenditures and boosting tax revenues.

“The first thing we need to do, obviously, is to live within our means,” Gaolathe said in Washington. “That means cutting spending — doing away with what we believe is some of the fat.”

Diamonds make up a third of Botswana’s revenue and lead its exports, but a prolonged drop in global demand since mid-2023 has forced the government to raise its budget deficit forecast to 9% of GDP — the highest since the pandemic. The downturn has also led to a 3% contraction in the economy this year.

With foreign reserves under pressure, officials plan to cut costs by trimming the government vehicle fleet and curbing travel. They’re also moving to boost revenue through stricter tax enforcement and a new digital transaction levy set to launch in September.

Despite fiscal stress, Gaolathe said Botswana is reluctant to seek financing on international markets, preferring concessional loans. “Let’s borrow where it’s cheapest,” he said.

Bigger De Beers stake
The diamond downturn has also accelerated changes in the industry. Anglo American (LON: AAL), which owns 85% of De Beers, has been seeking a buyer for the iconic diamond company. Botswana, which holds the remaining 15% and is De Beers’ primary diamond source, says it wants a greater say in the sale.

“We are very confident that partners are coming forward,” Gaolathe told Bloomberg, noting interest from countries, funds and companies with “deep interest” in the industry. Botswana wants any new owner to be financially strong and committed to the diamond business long-term — and said it is open to increasing its stake to as much as 50%.

The government and De Beers recently signed a 10-year deal to fund global marketing aimed at reviving demand for natural diamonds, which have been losing ground to lab-grown alternatives. New US tariffs on Botswana’s diamonds have since added uncertainty to any near-term rebound.

“High tariffs on our diamonds will have a deleterious effect on us,” Gaolathe warned. The Bank of Botswana expects only a “muted recovery” this year.

Source: Mining.com

Bank of Namibia’s Warning on US Diamond Tariffs

Namibia’s diamond industry may be pushed into deeper crisis if United States (US) president Donald Trump pushes ahead with implementing an export tariff of 21% on Namibia.

The governor of the Bank of Namibia has warned that US tariffs on diamonds – which account for 29 per cent of the country’s exports – could push the country into a deeper crisis. 

It is already suffering the worst drought in over a century, compounded by the slump in diamond demand and other economic hardships, spiralling unemployment and a malaria outbreak.

“The diamond is already going through a difficult time because of low demand, and competition from lab-grown diamonds, and now you have all these tariffs,” said governor Johannes !Gawaxab*.

Namibia currently enjoys duty-free exports to the US on diamonds and most other products, but President Donald Trump announced a 21 per cent export tariff for the country in his 2 April “Liberation Day” speech.

He subsequently said there would be a 90-day pause before reciprocal tariffs on a whole list of countries were implemented.

Namibia is world’s eighth biggest diamond producer by carat, and the sixth by value, primarily from marine diamonds. Last year 12.4 per cent of its polished diamonds were sold to the US.

*The exclamation mark represents a click sound in Khoekhoegowab, an official language of Namibia.

Source: IDEX

Ousted Masisi Claims De Beer Funded Botswana's Opposition

Botswana’s former president Mokgweetsi Masisi has accused De Beers of funding the party that ousted him from power last November – because he was taking too tough a stance on the critical 10-year diamond deal.

He claims the mining company actively supported the Umbrella for Democratic Change (UDC) which ended 58 years of uninterrupted rule by the Botswana Democratic Party (BDP).

Masisi (pictured) also claims De Beers tried to influence internal politics within the BDP to appoint a more favourable leader and that it deliberately stalled on the signing of a full diamond sales agreement because of tax disputes.

De Beers and the Botswana government agreed the principles of a sales agreement, mining licenses and a package of measures to boost the country’s economy under Masisi, but the deal remained unsigned during his tenure.

It was finally inked three months after he was replaced as president by Duma Boko.

De Beers and the UDC have categorically rejected Masisi’s claims. De Beers said: “We do not provide financial or other support for political purposes to any politician, political party or related organisation, or to any official of a political party or candidate for political office, in any circumstances, either directly or through third parties.”

A UDC spokesperson dismissed Masisi’s claims as outlandish, and challenged him to provide evidence.

Source: IDEX

Botswana, De Beers sign overdue diamond deal

Botswana’s government signed on Tuesday a long-delayed diamond mining and sales agreement with Anglo American unit De Beers, the world’s leading diamond producer by value.

As part of the deal, Botswana’s share of the diamonds produced by Debswana, a 50-50 joint venture between the country’s government and De Beers, will increase from 25% to 50%. Botswana will receive 10 billion pula ($712 million) in development funding, in line with a provisional 10-year arrangement reached in 2023.

The agreement, in negotiations since 2018, also extends the mining licenses for Debswana until 2054. Previously, the licenses were set to expire in 2029.

The signing of the contract had stalled under former President Mokgweetsi Masisi but was prioritized by President Duma Boko, who took office last October.

Botswana, the world’s largest producer of rough diamonds by value, depends on the sector for the bulk of its national revenue. President Boko, however, has voiced concerns that the industry is not generating enough employment opportunities.

While Debswana’s diamond production accounts for 80% of Botswana’s exports, the country has struggled to diversify beyond mining. Despite a relatively high annual per capita income of $7,820 — exceeding that of oil-rich Gabon and South Africa, the continent’s biggest economy—job creation remains limited.

The deal comes at a crucial time for De Beers, as its parent company, Anglo American, considers spinning out the diamond business through a sale or initial public offering. Analysts warn that weak global diamond prices could complicate such a move.

Botswana remains integral to De Beers’ operations, supplying 70% of its annual rough diamonds. The government also holds a 15% stake in De Beers, underscoring the long-standing strategic partnership between the two parties.

Source: Mining.com

Anglo American writes down value of diamond firm De Beers by $2.9bn

The world’s biggest diamond miner, De Beers, cost its parent company almost $3bn last year as the growth in lab-grown stones continues to take the shine off the industry.

Anglo American was forced to write down the value of the renowned gem producer for a second consecutive year as its chief executive admitted the diamond markets had proved “really, really difficult for the company”.

Duncan Wanblad, the chief executive of Anglo American, added that its plan to shrug off De Beers as part of a radical strategy to dismantle parts of the 108-year-old group – which coined the slogan “a diamond is forever” in 1947 – may be delayed.

He added that the FTSE 100 company did not expect “much traction or progress” on its plans to spin off De Beers in the first half of the year, which could be via a trade sale or a listing via an IPO or demerger, but it might “pick up” towards the end of the year.

Diamond prices have slumped over the past decade because of the rising popularity of cheaper, lab-grown versions and a slowdown in consumer spending in China.

In response, Anglo has taken impairments of $2.9bn on De Beers last year, after a $1.6bn writedown of the company in its annual results last year. This drove Anglo to a $3.1bn net loss in 2024, from a $283m profit the previous year.

The latest writedown of De Beers, which once controlled 90% of the world’s diamond market, means the company is now valued at $4bn.

Anglo laid bare the ongoing losses at De Beers after setting out a plan last year to sell the diamond business as part of a historic corporate overhaul to defend the company against a £34bn takeover plot by the Australian miner BHP.

Anglo hopes to guard the company against further unsolicited advances from BHP, which attempted to force the board to offload two Johannesburg-listed subsidiaries, the platinum miner Amplats and the iron ore miner Kumba, in order to complete a takeover.

Wanblad said the company had received unsolicited interest in the diamond business but a formal process had not started. At least part of the company is expected to be purchased by the government of Botswana, which hosts many of the company’s diamond mines.

Source: Theguardiam