De Beers Sale Nears Final Chapter as Anglo American Moves to Exit Diamond Business

 

The long awaited sale of De Beers appears to be approaching its final stage, with Anglo American expected to complete the transaction before the middle of 2026 as the mining giant continues its strategic shift away from diamonds.

Speaking on 16 June at the Reuters NEXT Europe economic summit in London, De Beers CEO Al Cook indicated that the sale process could be concluded within “a few weeks, rather than a few months”, signalling that one of the most significant transitions in the modern diamond industry is moving closer to completion.

After more than a century as one of the most influential names in the global diamond trade, De Beers is entering a new era. Anglo American began reviewing its portfolio in 2023 as part of a broader strategy focused on commodities with stronger long term growth potential, including copper, iron ore and minerals linked to the global energy transition.

The shift comes after a challenging period for the diamond market. Between 2022 and 2025, De Beers experienced a substantial decline in financial performance, with sales falling from approximately US$6.6 billion in 2022 to around US$3.5 billion in the latest reporting period. Production also declined from approximately 35 million carats to 21.7 million carats.

Changing Consumer Demand Reshapes the Diamond Market

The decline in luxury spending in China, combined with the rapid growth of lab grown diamonds in the United States, has placed significant pressure on demand for natural diamonds.

The market has experienced three consecutive years of weaker demand, forcing the industry to reassess supply, pricing strategies and the long term role of natural diamonds in the luxury sector.

Despite these challenges, interest in acquiring De Beers remains strong. The company continues to attract potential buyers, including strategic investors, diamond producing nations and experienced industry figures.

Botswana, which already owns a 15 per cent stake in De Beers, has been exploring opportunities to increase its involvement alongside international partners. Diamonds remain central to Botswana’s economy, representing a major share of export earnings and a significant contributor to national GDP.

A greater ownership position could allow Botswana to capture more value from the diamond supply chain and increase its influence over the future direction of the global diamond industry.

Future Diamond Supply Could Support Prices

While the short term market remains challenging, potential buyers are also focused on the longer term fundamentals of diamonds, particularly the issue of supply scarcity.

The discovery of major new diamond deposits has slowed significantly. The Luele mine in Angola is regarded as one of the most important discoveries of the past two decades, while several established mines in Canada and southern Africa are expected to reduce production or close in the coming years.

As global production declines, the balance between supply and demand could begin to shift. A tighter supply environment may provide support for natural diamond prices over the medium to long term.

The sale of De Beers represents more than a corporate transaction. It marks the end of an era for one of the most recognised names in luxury and signals a new chapter for the global diamond industry, where ownership, supply control and changing consumer preferences will shape the future of natural diamonds.

Source: DCLA

Natural Diamonds at a Turning Point: De Beers Sale Signals a New Era for the Global Diamond Industry

 

The natural diamond industry is entering a defining period of transformation as one of the world’s most influential diamond companies, De Beers, moves closer to a change in ownership while the broader market shows early signs of recovery after several challenging years.

De Beers CEO Al Cook has indicated that a sale of the diamond giant could be completed within weeks rather than months, bringing to a close a two year process of negotiations. Speaking at the Reuters NEXT Europe conference in London, Cook said discussions have reached an advanced stage and that the company is closer to a sale than ever before.

Anglo American placed its 85% stake in De Beers on the market in May 2024 as part of a wider restructuring strategy following a prolonged downturn in diamond prices, weaker consumer demand, and the rapid growth of lab grown diamonds.

De Beers remains one of the most important names in the global diamond industry, with operations spanning Botswana, Namibia, Angola, South Africa, and Canada. The company has played a central role in shaping the natural diamond market for more than a century.

The potential buyers include diamond producing nations and strategic investors. Botswana, which already owns a 15% stake in De Beers, along with Namibia and Angola, have shown interest through various partnerships. These countries recognise the importance of diamonds to their economies and are looking to secure a stronger role in the future direction of the industry.

Cook highlighted that the current interest comes from groups with deep diamond knowledge, creating the opportunity for a strong public private partnership that could support the next chapter of De Beers.

Sources indicate that the number of potential buyers has narrowed from six groups in 2025 to two remaining consortia. These include diamond producing governments, former De Beers CEO Gareth Penny, investment groups, and international investors.

Natural Diamond Market Recovery Begins to Take Shape

While the industry has faced significant pressure since 2021, the market is showing signs of reaching a turning point.

The downturn was driven by several major structural changes. The rapid expansion of lab grown diamonds transformed consumer expectations, with improvements in CVD and HPHT technology allowing synthetic diamonds to become widely available at significantly lower prices.

This created pressure across the natural diamond pipeline as consumers became more focused on size and appearance rather than rarity and long term value.

At the same time, weaker luxury demand, particularly in China, reduced one of the industry’s most important growth markets. The slowdown affected miners, manufacturers, retailers, and diamond producing nations.

Botswana, the world’s largest diamond producer by value, experienced economic pressure as declining diamond revenues impacted national growth. The challenges highlighted the importance of diamonds not only as a luxury product but as a critical economic resource for producing countries.

A New Diamond Market Structure

The current recovery is unlikely to mirror previous diamond cycles. The industry is entering a new era where scarcity, provenance, quality, and consumer trust will become increasingly important.

Natural diamonds and lab grown diamonds are moving into different market positions. Lab grown diamonds compete primarily on affordability, while natural diamonds continue to represent rarity, geological history, and emotional value.

The potential sale of De Beers could become a major milestone in reshaping the future of the natural diamond sector. New ownership, combined with improving market fundamentals and a renewed focus on the uniqueness of natural diamonds, may help create the foundation for the next phase of the industry.

For the global diamond market, 2026 could represent not just a recovery year, but the beginning of a new chapter.The natural diamond industry is entering a defining period of transformation as one of the world’s most influential diamond companies, De Beers, moves closer to a change in ownership while the broader market shows early signs of recovery after several challenging years.

De Beers CEO Al Cook has indicated that a sale of the diamond giant could be completed within weeks rather than months, bringing to a close a two year process of negotiations. Speaking at the Reuters NEXT Europe conference in London, Cook said discussions have reached an advanced stage and that the company is closer to a sale than ever before.

Anglo American placed its 85% stake in De Beers on the market in May 2024 as part of a wider restructuring strategy following a prolonged downturn in diamond prices, weaker consumer demand, and the rapid growth of lab grown diamonds.

De Beers remains one of the most important names in the global diamond industry, with operations spanning Botswana, Namibia, Angola, South Africa, and Canada. The company has played a central role in shaping the natural diamond market for more than a century.

The potential buyers include diamond producing nations and strategic investors. Botswana, which already owns a 15% stake in De Beers, along with Namibia and Angola, have shown interest through various partnerships. These countries recognise the importance of diamonds to their economies and are looking to secure a stronger role in the future direction of the industry.

Cook highlighted that the current interest comes from groups with deep diamond knowledge, creating the opportunity for a strong public private partnership that could support the next chapter of De Beers.

Sources indicate that the number of potential buyers has narrowed from six groups in 2025 to two remaining consortia. These include diamond producing governments, former De Beers CEO Gareth Penny, investment groups, and international investors.

Natural Diamond Market Recovery Begins to Take Shape

While the industry has faced significant pressure since 2021, the market is showing signs of reaching a turning point.

The downturn was driven by several major structural changes. The rapid expansion of lab grown diamonds transformed consumer expectations, with improvements in CVD and HPHT technology allowing synthetic diamonds to become widely available at significantly lower prices.

This created pressure across the natural diamond pipeline as consumers became more focused on size and appearance rather than rarity and long term value.

At the same time, weaker luxury demand, particularly in China, reduced one of the industry’s most important growth markets. The slowdown affected miners, manufacturers, retailers, and diamond producing nations.

Botswana, the world’s largest diamond producer by value, experienced economic pressure as declining diamond revenues impacted national growth. The challenges highlighted the importance of diamonds not only as a luxury product but as a critical economic resource for producing countries.

A New Diamond Market Structure

The current recovery is unlikely to mirror previous diamond cycles. The industry is entering a new era where scarcity, provenance, quality, and consumer trust will become increasingly important.

Natural diamonds and lab grown diamonds are moving into different market positions. Lab grown diamonds compete primarily on affordability, while natural diamonds continue to represent rarity, geological history, and emotional value.

The potential sale of De Beers could become a major milestone in reshaping the future of the natural diamond sector. New ownership, combined with improving market fundamentals and a renewed focus on the uniqueness of natural diamonds, may help create the foundation for the next phase of the industry.

For the global diamond market, 2026 could represent not just a recovery year, but the beginning of a new chapter.

Source: DCLA

Steep Rise in De Beers Rough Production

 

De Beers says rough diamond production increased by 17% in the first three months of 2026, to 7.1 million carats.

The increase was largely driven by the release of stockpiled ore at Gahcho Kue, in Canada, (up 163%) and higher underground volumes at Venetia in South Africa (up 53%).

The loss-making miner said, however, that trading conditions remained “challenged” due to ongoing industry, geopolitical and tariff headwinds.

Rough sales at the two sights held during the quarter saw revenue rise, year-on-year by almost 25% to $648 million, although average per carat prices fell 19% to $101.

Production guidance for 2026 remains unchanged at 21-26 million carats, the company said in its Production Report for the First Quarter of 2026, published on 28 April.  

Actual rough production was 24.7 million carats in 2024 and 21.7 million carats in 2025.

Botswana, which accounts for more than two thirds of all De Beers’ diamonds, saw production rise by 5% year-on-year during Q1 2026.

There was a 12% drop in Namibia, due to scheduled maintenance on two vessels at Debmarine Namibia and the of decommissioning two vessels.

There was 53% production rise in South Africa, largely due to increased processing of underground ore from Venetia, and a 163% increase in Canada due to the planned release of ore from a new area of Gahcho Kue.

Source: DCLA

Production Rises, Prices Fall, and Technology Redefines Trust in Diamonds

 

De Beers Production Up, But the Market Signal Is Misleading

De Beers reported a 17% year-on-year increase in rough diamond production for Q1 2026, reaching 7.1 million carats. At face value, the figure suggests strengthening momentum. However, a deeper analysis reveals a far more measured reality.

The increase is primarily operational, not demand-driven. Output surged 88% quarter-on-quarter, largely due to a rebound from a deliberately reduced Q4 2025 production base. Key contributors included planned ore releases from the Gahcho Kué mine in Canada and higher underground volumes at Venetia in South Africa both outcomes of long-established mine plans rather than responses to improving market conditions.

This distinction is critical. Production growth tied to mine development cycles does not reflect rising consumer demand. Instead, it highlights the timing of extraction phases within capital-intensive, long-term mining programmes.

More telling is the divergence between volume and value. While production rose 17%, De Beers’ average realised prices declined by 19% over the same period. This inverse relationship underscores ongoing softness in the natural diamond market, where increased supply is not being met with corresponding demand.

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Angola Expands Ambitions with Rio Tinto Joint Venture

In a strategic move to expand its diamond sector, Rio Tinto has entered into a joint venture with Angola’s state-owned Endiama to develop the Chiri project.

The new entity, Sociedade Mineira do Chiri, will be majority owned by Rio Tinto (75%), with the remaining stake held by Endiama. Located in Angola’s resource-rich eastern region, the project has already shown promising kimberlite indications following early-stage exploration.

While capital expenditure has yet to be allocated, the initiative reflects Angola’s broader strategy to increase diamond output and attract foreign investment. This comes at a time when global diamond prices remain under pressure, reinforcing the long-term nature of such investments rather than any short-term pricing optimism.

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DiaDNA: A Technological Leap in Diamond Traceability

KP Sanghvi & Sons has introduced DiaDNA, a next-generation traceability platform that represents a significant advancement in diamond authentication.

Unlike traditional methods that rely on inscriptions, documentation, or external markers, DiaDNA analyses the diamond at an atomic level using advanced scanning and artificial intelligence. This process generates a unique structural “fingerprint” inherent to the stone itself immutable and impossible to replicate.

Each fingerprint is securely stored in a cloud-based system, allowing verification at any stage of the supply chain, from manufacturing through to retail. The technology enables:

• Independent, real-time authentication
• Enhanced provenance tracking
• Reduced reliance on fragmented paperwork
• Greater transparency for consumers and compliance teams

Fully integrated into KP Sanghvi’s Surat operations since 2024, DiaDNA signals a broader industry shift toward verifiable, data-driven provenance. As expectations around ethical sourcing and transparency continue to rise, such innovations are likely to become central to maintaining trust in natural diamonds.

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Market Perspective

The Q1 2026 landscape presents a clear narrative: increased production does not equate to increased demand. While miners continue to execute long-term operational strategies, pricing pressures persist across the market.

At the same time, structural shifts are underway. Nations like Angola are positioning for future supply growth, while technological innovation exemplified by DiaDNA is redefining how diamonds are tracked, authenticated, and ultimately trusted.

For the trade, the message is precise: understanding the difference between operational supply growth and genuine market demand has never been more important.

Source: DCLA

Diamond Debut for De Beers and Sotheby's Collaboration

 

The sale of the Jwaneng 28.88 diamond later this month marks the start of a collaboration between De Beers and Sotheby’s.

Together they aim to “present exceptional diamonds as works of art,” although no details on the terms or scope of the agreement have been made public.

The collaboration centers on joint marketing and storytelling, going beyond a standard consignment, in which the miner selects an auction house.

Both companies co-create a branded narrative – “earth to art” – to promote across their channels

The flawless D-color unmounted Jwaneng 28.88 – cut from a 114.83-carat rough recovered at Botswana’s Jwaneng mine (Debswana, De Beers’ 50-50 government venture) -leads the auction at Sotheby’s Magnificent Jewels & Jadeite sale in Hong Kong on 23 April.

It carries an estimate of HKD 17 million to HKD 22 million (USD 2.2 million to USD 2.8 million).

Other De Beers diamonds from Jwaneng will be offered at the same sale, including a solitaire ring and a pair of diamond earrings.

Source: DCLA

De Beers Group extends Desert diamonds into bridal with a new palette of lighter hues

 

De Beers Group today announces the next chapter of Desert diamonds: an extension of the industry-wide beacon concept into the bridal market, bringing a fresh interpretation of natural diamond engagement and wedding jewellery through a refined spectrum of warm, nature-made hues that reflect enduring love and personal expression.

First launched to consumers in 2025 as De Beers Group’s first new beacon in over a decade, Desert diamonds is supported by De Beers’ largest category marketing investment in more than ten years. Developed to galvanise the industry around a central idea, Desert diamonds celebrates the wild, natural origin of natural diamonds and the distinctive spectrum of tones that occur in nature — from warm whites to champagne hues — offering consumers a compelling, authentic story of individuality and connection.

A natural evolution into bridal

The new bridal-focused chapter builds on the strong cultural momentum Desert diamonds has generated since launch, as warmer-toned diamonds become increasingly visible in popular culture and are worn by high‑profile figures across fashion, music and entertainment – including Bad Bunny, Doja Cat and Teyana Taylor.

This cultural momentum has also been reflected in some of the world’s most talked‑about bridal moments. Taylor Swift’s engagement ring, crafted by Kindred Lubeck, widely noted for its warm, candlelight diamond tone, has become a powerful cultural reference point for consumers.

This cultural interest has also translated into retail impact. Independent retailers who were involved in the first Desert diamonds campaign across the US reported increased foot traffic during the campaign’s initial run in 2025 and a rise in bridal‑led enquiries, with consumers increasingly interested in how these naturally warm tones could be applied to life’s most meaningful milestones — particularly engagement and wedding jewellery.

A lighter desert palette for modern bridal

Launching 13 April 2026 across the United States, Desert diamonds bridal is designed to meet growing interest in a more versatile, accessible spectrum of diamond colours — a softer, lighter desert palette that testing indicates resonates strongly with bridal audiences seeking authenticity and individuality in their choice of engagement and wedding jewellery.

The campaign will feature design archetypes including solitaire rings, three-stone rings and diamond bands and eternity-style pieces, created to highlight the natural variation and character of each stone.

An industry‑wide programme to inspire renewed desire

As with previous De Beers beacons — from the diamond bands to the tennis bracelet — Desert diamonds is designed as an industry‑wide programme with the goal of celebrating natural diamonds and reigniting consumer desire. De Beers has collaborated with over 60 designers across the industry to develop collections that interpret the desert‑inspired palette across both engagement and bridal jewellery, including Kindred Lubeck, designer of Taylor Swift’s engagement ring, with pieces available for future brides and couples to purchase.

Sandrine Conseiller, CEO of De Beers Brands & Diamond Desirability, said: “The success of Desert diamonds has reaffirmed something we’ve long believed: today’s consumers are drawn to what is real, rare and deeply personal. By celebrating the naturally occurring beauty and individuality of natural diamonds, the campaign struck a chord culturally and at retail, inviting a new generation to reconnect with the story behind their diamond.

Extending Desert diamonds into bridal is a natural next step. When people choose an engagement or wedding ring, they’re looking for authenticity — a symbol that feels true to who they are and the love they share. With this lighter, desert‑inspired palette, we’re offering couples a diamond that reflects their own story: shaped by nature, rich in character, and unlike anything else.”

De Beers’ Desert diamonds bridal campaign is supported by an integrated marketing programme across digital, social, outdoor and experiential channels. Through evocative storytelling, the campaign brings the Desert diamonds story into the context of love and commitment, drawing parallels between the individuality of each diamond and the unique journeys of the people who wear them. The creative spotlights how every diamond is shaped by nature and time, inviting brides to celebrate a commitment that is truly their own.

Source: DCLA

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.