De Beers Reports $511 Million Loss as Global Diamond Crisis Deepens

 

The global diamond industry is facing its most severe downturn in decades, with De Beers posting a staggering $511 million EBITDA loss for 2025 — a dramatic collapse that underscores mounting structural pressures across the natural diamond market.

Despite generating approximately $3.5 billion in revenue, profitability deteriorated sharply, highlighting a widening disconnect between stable turnover and collapsing margins. The downturn reflects a perfect storm of falling realised prices, swelling inventories, rising operational costs and intensifying competition from laboratory-grown alternatives.

This historic loss signals more than a cyclical slowdown — it marks a structural turning point for the global diamond sector.

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Why Did De Beers Record a $511 Million Loss?

The scale of the financial decline is unprecedented. The company’s EBITDA performance deteriorated nearly 2,000% year-on-year, shifting from manageable losses into industry-defining deficits.

Key Drivers Behind the Collapse:

• Lower realised rough diamond prices
• Inventory accumulation throughout the midstream
• Production cuts impacting fixed-cost absorption
• Asset impairment charges reflecting weaker long-term pricing assumptions

While revenues remained broadly stable, margins compressed dramatically — revealing that demand weakness is affecting pricing power rather than transaction volume alone.

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Production Cut by 12% as Supply Is Calibrated

In response to deteriorating market conditions, rough diamond production was reduced by 12% to 21.7 million carats in 2025.

Unlike gold or oil markets where production cuts can rapidly rebalance supply, the diamond sector operates through a complex value chain involving mining, cutting, polishing and retail distribution. Inventory build-ups in 2025 forced disciplined output reductions designed to:

• Preserve cash flow
• Prevent further price collapse
• Protect long-term reserve value
• Stabilise global supply

However, elevated stockpiles remain a major overhang for 2026.

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Lab-Grown Diamonds Accelerate Structural Disruption

Laboratory-grown diamonds continue gaining market share, particularly in engagement rings — historically the most valuable segment of natural diamond demand.

These synthetics are chemically identical but typically sell for 60–80% less than natural stones.

Competitive Advantages of Lab-Grown Diamonds:

• Lower retail prices
• Ethical and environmental positioning
• Consistent quality
• Rapid scalable production

Millennial and Gen Z buyers are demonstrating increased price sensitivity and different value priorities compared with previous generations — a demographic shift that is reshaping long-term demand dynamics.

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China’s Luxury Slowdown Hits Diamond Demand

China, once a powerful growth engine for premium diamond jewellery, is experiencing reduced luxury consumption.

Key contributing factors include:

• Slower GDP growth
• Property market weakness
• Lower consumer confidence
• Currency sensitivity to imports

With Chinese buyers representing a significant share of high-end global diamond demand, the slowdown is having a disproportionate impact on producers.

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US Tariffs Disrupt Indian Diamond Processing Hub

Trade policy has compounded the crisis. India processes roughly 80% of the world’s rough diamonds, and new US tariffs on Indian polished stones have created additional cost pressures and uncertainty.

The impact includes:

• Higher landed costs for US-bound diamonds
• Supply chain bottlenecks
• Planning uncertainty
• Competitive distortions

Even if tariff relief emerges later in 2026, industry participants remain cautious about near-term recovery.

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Anglo American Takes $2.3 Billion Impairment

Parent company Anglo American recognised a $2.3 billion impairment related to its diamond division, reflecting revised long-term price expectations.

This writedown signals a structural reassessment of the sector rather than a temporary cyclical dip.

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African Economies Feel the Pressure

Diamond-producing nations such as Botswana face heightened economic vulnerability. Diamond revenues contribute substantially to:

• Government income
• Foreign exchange earnings
• Employment
• GDP

Production discipline across Southern Africa reflects both market necessity and economic sensitivity.

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What Happens Next? Recovery Scenarios for 2026–2028

Industry forecasts suggest cautious optimisation in 2026, with gradual recovery potentially emerging through 2027–2028.

Key variables include:

• Inventory normalisation
• Stabilisation of Chinese demand
• Trade policy resolution
• Lab-grown market share plateau

However, structural competition from synthetic diamonds is likely permanent, meaning natural diamond producers must reposition strategically.

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What This Crisis Reveals About Luxury Commodity Markets

The diamond downturn highlights broader lessons for luxury commodities:

• High income elasticity creates sharp downturn risk
• Supply chains concentrated in single regions amplify vulnerability
• Technological disruption can permanently reshape pricing structures
• Inventory cycles in opaque markets create extended recovery timelines

Unlike transparent commodities such as gold, diamond pricing lacks a centralised exchange — increasing volatility during stress periods.

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Investment Perspective

For long-term investors, sector distress can present contrarian opportunities — but risks remain elevated.

Favourable characteristics may include:

• Low-cost producers
• High-grade deposits
• Strong balance sheets
• Vertical integration

Nevertheless, structural shifts in consumer preference require careful risk-adjusted evaluation.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Commodity investments carry substantial risk, including potential loss of capital. Readers should conduct independent research and consult qualified financial professionals before making investment decisions.

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DCLA News will continue monitoring developments in the global diamond sector as the industry navigates one of the most challenging periods in modern history.

Anglo flags third De Beers writedown as Teck merger looms

 

Anglo American is weighing a third writedown of De Beers in as many years as weak diamond prices persist and the miner advances asset sales ahead of its merger with Canada’s Teck Resources.

The century-old group said on Thursday it was reviewing the carrying value of its diamond business after average realized prices fell in 2025, warning the unit is likely to be lossmaking again.

The potential impairment comes as Anglo moves to finalize the sale of non-core assets, including De Beers. At the same time, the miner is preparing to merge with Teck in a transaction approved by shareholders and regulators late last year, creating Anglo Teck (official named confirmed).

The company booked a $2.9 billion impairment on De Beers in February last year, following a $1.6 billion writedown in 2024. Anglo, which owns 85% of the diamond company, offered few details on a sale process, saying only that it was “progressing.”

In a fourth-quarter production update, Anglo said diamond trading conditions “continued to be challenging” amid industry weakness, geopolitical tensions and tariff uncertainty. It said lower prices and market conditions could lead to an impairment when full-year results are released.

Diamond prices have come under pressure from weaker consumer demand in China and competition from cheaper, lab-grown stones. De Beers’ average realized price fell 7% to $142 per carat in 2025, driven by a 12% drop in the average rough price index.

Anglo said the decline was exacerbated by selling inventory below cost, largely lower-value goods. Adjusted for that mix, the equivalent price index reduction would have been 25% year on year, suggesting some underlying resilience in the market.

De Beers sold 5.9 million carats in the fourth quarter, up from 4.6 million a year earlier, lifting revenue to $571m from $543m. Even so, Anglo said it was undertaking an impairment review that could result in another writedown.

Exit hurdles
The prolonged slump complicates Anglo’s efforts to exit De Beers. Chief executive Duncan Wanblad said only that the sale was moving forward. A consortium led by former De Beers managing director Gareth Penny is seen as a frontrunner, though Botswana, which owns 15% of the company, has said it wants to take control.

Namibia has also expressed interest, and former chief executives Bruce Cleaver and Penny have been mentioned as potential buyers.

The De Beers sale forms part of a restructuring unveiled in 2024. Anglo demerged its platinum arm, Amplats (now Valterra), in June 2025, while the planned sale of its Australian metallurgical coal mines stalled after Peabody Energy (NYSE: BTU) walked away following a fire at Moranbah North.

Wanblad said on Thursday that the formal sale process for steelmaking coal was “progressing well,” without naming alternative buyers or addressing potential compensation from the US firm.

Copper reality check
Copper remains central to the Anglo-Teck investment case, but near-term output expectations have softened. Anglo cut its 2026 copper guidance to 700,000 to 760,000 tonnes from 760,000 to 820,000 tonnes, citing lower grades at several operations.

It also trimmed 2027 guidance to 750,000 to 810,000 tonnes, including at Collahuasi in Chile, which Anglo and Teck plan to integrate with Teck’s neighbouring Quebrada Blanca mine. For the longer term, the group added new guidance for 2028 of 790,000 to 850,000 tonnes.

A 15-km (9.3-mile) conveyor would be built to feed Collahuasi’s high-quality ore into QB’s new processing plants. (Click on map to enlarge)
Copper production in 2025 was 695,000 tonnes, roughly flat year on year and at the lower end of guidance. Goldman Sachs said output missed its estimate by 5%, with Anglo’s Quellaveco mine in Peru falling short by 10% on lower-than-expected grades. Collahuasi’s underperformance was already known, while Los Bronces in Chile ended the year strongly.

Adjusting for Collahuasi, the underlying miss narrows to about 2%, which Goldman said better reflects what the market had already priced in.

A sharp rise in copper prices in recent months has renewed interest in the metal and helped spur merger talks between rivals, including the once again abandoned merger between Rio Tinto (ASX, LON: RIO) and Glencore (LON: GLEN).

With ageing mines delivering lower grades and new projects costly and slow to develop, copper dealmaking has become more attractive as supply constraints tighten across the sector.

Source: DCLA

De Beers to Release “A Diamond Is Forever” Book Celebrating a Century of Natural Diamond Legacy

 

De Beers is set to release A Diamond Is Forever, a new luxury book exploring the evolution of the company’s natural diamond marketing and its profound influence on global culture, romance, and society. The book will be published next week by Assouline, a renowned publisher of high-end illustrated volumes.

Named after one of the most iconic advertising slogans in history, A Diamond Is Forever celebrates the cultural, artistic, and emotional legacy of natural diamonds — nature’s oldest treasure and one of humanity’s most enduring symbols of love and commitment.

De Beers is widely credited with transforming diamonds from an exclusive luxury reserved for society’s elite into a universal symbol used to mark life’s most important romantic milestones and personal achievements. Prior to the 1930s, diamond jewellery was exchanged discreetly within elite circles, with luxury houses maintaining strictly private client relationships. De Beers reshaped this narrative, positioning diamonds at the heart of modern romance.

In 1947, De Beers copywriter Frances Gerety coined the legendary phrase “A Diamond Is Forever,” embedding the gemstone into global consciousness as a lasting promise of love, endurance, and emotional significance. The slogan appeared across archival print advertising, magazine spreads, and celebrity endorsements, cementing the diamond’s place in popular culture.

The book also highlights De Beers’ historic collaborations with celebrated artists such as Pablo Picasso, Salvador Dalí, and Raoul Dufy, drawing parallels between the rarity of diamonds and the genius of fine art. These campaigns elevated diamonds beyond jewellery, reinforcing their artistic and cultural value while preserving a sense of exclusivity.

During the 1960s, Hollywood icons including Elizabeth Taylor and Marilyn Monroe further amplified the glamour of diamonds, while the company’s influential 1990s “Shadows” campaign — set to Karl Jenkins’ Palladio — captured the gemstone’s timeless, authentic, and eternal nature.

Over the past two decades, De Beers has periodically retired and revived the famed slogan, most recently reintroducing it in late 2023 as part of a refreshed “Seize the Day” campaign, originally launched in the 1990s.

According to the publisher, the story of diamonds is one of both transformation and continuity. In recent years, the narrative has expanded to include provenance, sustainability, and ethical stewardship, reinforcing the natural diamond as a symbol not only of beauty and permanence, but also of responsibility and conscience.

A Diamond Is Forever spans 240 pages and features 180 illustrations. Presented as a hardcover book housed in a luxury slipcase, it will retail for USD $195 and is scheduled for release on January 30.

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.

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 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 Shuts Down Lightbox Lab-Grown Diamond Brand to Refocus on Natural Diamonds

De Beers Group, the global diamond mining leader, has announced the closure of its lab-grown diamond (LGD) jewellery brand, Lightbox, marking a strategic pivot back to natural diamonds. The decision comes as part of the company’s broader Origins Strategy, launched in May 2024, to streamline operations and prioritise high-return business areas.

End of the Road for Lightbox

Launched in 2018, Lightbox was positioned to differentiate lab-grown diamonds from natural ones by offering transparent linear pricing at $800 per carat. However, the LGD market has undergone significant change. Wholesale prices for lab-grown diamonds in the jewellery sector have dropped by around 90%, pushing the market toward a cost-plus pricing model. This sharp decline in value has ultimately led De Beers to discontinue Lightbox.

In addition to market pressures, De Beers cited weakening demand and uncertainty around tariffs as contributing factors behind the closure. Discussions are currently under way for the sale of Lightbox’s assets, including its remaining inventory.

Reaffirming Commitment to Natural Diamonds

Al Cook, CEO of De Beers Group, emphasised that the decision to close Lightbox reflects the company’s long-term strategy to focus on natural diamonds, where brand heritage and enduring value remain strong.

“The persistently declining value of lab-grown diamonds in the jewellery market underscores the growing distinction between factory-made stones and natural diamonds,” Cook said.
“Global competition, especially from low-cost Chinese producers, and falling prices driven by US supermarkets, show that prices are likely to continue dropping. Lightbox played a role in clarifying the difference in value between lab-grown and natural diamonds.”

De Beers plans to reinvest resources from Lightbox into marketing campaigns and initiatives that enhance the global appeal of natural diamonds.

Support for Customers and Partners

As Lightbox operations wind down, De Beers will ensure a smooth transition for employees, suppliers, retail partners, and other stakeholders. Warranties and after-sales services for existing Lightbox purchases will continue to be honoured during the closure period.

Synthetic Diamonds to Power Innovation

While De Beers exits the LGD jewellery space, it remains invested in the future of synthetic diamonds in industrial and technological applications. Element Six, a De Beers subsidiary and former supplier to Lightbox, will continue developing lab-grown diamond solutions for sectors such as semiconductors, optics, and quantum technology.

Element Six will centralise its chemical vapour deposition (CVD) production in Oregon, USA, as part of its plan to strengthen global partnerships and fuel innovation across high-tech industries.

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

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

De Beers Adapts to India’s Growing Demand for Lab-Grown Diamonds

De Beers, long associated with the glamour of natural diamonds, is now grappling with a fading shine. The rise of lab-grown diamonds, which have gained popularity among millennial and Gen Z consumers in India and worldwide from the US to China poses a significant challenge.

Lab-grown diamonds offer several advantages: they are 60-75% more affordable than natural diamonds, and as mass production increases, prices continue to drop. Moreover, they share the same chemical composition as natural diamonds and are visually indistinguishable to the naked eye.

Source: DCLA

Anglo American to review De Beers value amid weak diamond demand

Anglo American expects its De Beers diamond business to record an impairment amid declining diamond sales.

The London-listed miner announced Thursday that it will review De Beers’ value as it looks to exit the business, citing persistently weak diamond demand. Last year, Anglo reduced De Beers’ book value by $1.6 billion to $7.6 billion.

De Beers rough diamond production decreased by 26% to 5.8 million carats in 2024, compared to the previous year. The 2025 production guidance has been revised to 20–23 million carats, down from the previous estimate of 30–33 million carats. Anglo anticipates a marginal loss for the diamond business in 2024.

The mining giant put the world’s largest diamond producer up for sale last year as part of its portfolio simplification following a tentative takeover bid from BHP (ASX: BHP).

Anglo chief executive officer Duncan Wanblad stated earlier this week that the company plans to exit De Beers by the end of the year.

In November, Anglo announced agreements to sell its steelmaking coal business for up to $4.9 billion, with the Peabody transaction expected to close by the third quarter of 2025.

Additionally, the company completed a second bookbuild offering of Anglo American Platinum shares.

2024 production
On Thursday, the company reported that all of its businesses met their full-year production guidance.

It produced 773 kt of copper in 2024, aligning with its 730-790 kt guidance range, with the Quellaveco mine in Peru achieving its strongest quarter of the year in Q4.

“Our forward production guidance is unchanged in copper with growth in 2026 driven by higher grades in Chile, with this production level then maintained in 2027,” said Wanblad.

“We continue to set up the copper business for growth in subsequent years with the resumption of the smaller plant at Los Bronces and through debottlenecking at Collahuasi,” he said.

Anglo’s Minas-Rio iron ore operation in Brazil set a record, producing 25 million tonnes for the year, contributing to the company’s total iron ore production of 60.8 million tonnes in 2024.

“The key focus for the market has been on copper and production came ahead of expectations, with a strong result from Los Bronces, and guidance for FY25 remains unchanged,” RBC Capital Markets analysts commented in a note.

“However, not much good news beyond that with weak realised pricing in both iron ore and copper.”

Anglo American shares rose more than 5% in London trading following the results. The company has a market cap of £32.9 billion ($40.9 billion).

Source: DCLA

De Beers seals sales and mining contract with Botswana

De Beers, the world’s leading diamond producer by value, has concluded negotiations with the Botswana government on a new sales agreement and the extension of mining licenses for their joint venture, Debswana, until 2054.

The finalized agreement, the Anglo American unit said on Monday, follows discussions aimed at setting a new framework for the sale of rough diamond production from Debswana, a 50:50 partnership between De Beers and Botswana. The deal also secures the renewal of Debswana’s mining licenses, which were previously set to expire in 2029.

“Until the execution of these new agreements, the terms of the existing agreements will continue to remain in effect,” the diamond producer said.

Currently, 75% of Debswana’s diamond output is sold to De Beers. In 2023, the two parties reached a provisional 10-year agreement under which Botswana’s share of production was set to gradually increase to 50%.

The accord also established that Botswana’s state-owned diamond trading company was expected to receive 30% of Debswana’s production.

The government would also secure 10 billion pula ($712 million) in development funding as part of the deal. However, the deal stalled under the leadership of former President Mokgweetsi Masisi.

In January, newly elected President Duma Boko announced that his administration had reached an agreement with De Beers. Botswana, the world’s largest producer of rough diamonds by value, depends on the industry for the majority of its national revenue.

This new agreement comes at a pivotal time for De Beers as parent company Anglo American plans to spin off the diamond business through either a sale or an initial public offering. Analysts have noted that current depressed diamond prices may complicate efforts to finalize such a transaction.

Botswana remains a cornerstone of De Beers’ operations, accounting for 70% of its annual rough diamond supply. The government also holds a 15% stake in De Beers, underscoring the importance of the long-standing partnership between the two parties.

Source: DCLA