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 Beer’s 1873 Diamond, Still in Kimberlite

 

An extremely rare relic from the earliest years of the Kimberley diamond rush – a rough stone, still embedded in kimberlite – sold at auction in London for £10,500 ($14,000).

It dates back to the New Rush at Colesberg Kopje (now better known as the Kimberley mine), in South Africa that began when diamonds were first discovered there in 1871.

Furlong Auction House, at the London Diamond Bourse, in Hatton Garden, included it in a collection of “rare and highly desirable items across jewellery history” in its Collectables & Memorabilia auction on 8 January.

“This hand specimen of kimberlite (“blue ground”) contains a visible natural diamond crystal embedded in the matrix and retains its original manuscript presentation label dated May 23rd, 1873,” it said in the lot notes.

“The handwritten note – both on the specimen itself and on a later transcribed slip – reads: “Rev’d W. Thompson – A token of esteem from the Cong’l Church, De Beers New Rush, May 23, 1873. M.M.S., Sec’y.”

It said surviving labelled geological specimens from this period – especially with an exposed diamond crystal – were exceptionally scarce.

Source: DCLA

Diamonds as Time Capsules: Rare Inclusions Reveal Hidden Chemistry Deep Within Earth’s Mantle

Two extraordinary diamonds from South Africa have provided scientists with a rare glimpse into the hidden chemistry of Earth’s mantle—nearly 300 kilometres beneath the surface.

A research team from the Hebrew University of Jerusalem has identified the first direct evidence of nickel-iron metallic alloys and nickel-rich carbonates at these extreme depths. The discovery was made by examining tiny inclusions preserved inside diamonds from the Voorspoed mine in South Africa.

Diamonds as Nature’s Record Keepers

While diamonds are prized for their beauty, their true scientific value often lies in what they conceal. Inclusions—whether microscopic minerals or metallic alloys—serve as natural records of deep-Earth processes that would otherwise remain invisible.

“These diamonds act as tiny time capsules, preserving a rare chemical reaction that would otherwise disappear,” explained lead researcher Yaakov Weiss.

The inclusions confirm the diamonds’ origins in the deep upper mantle and shallow transition zone, at depths of 280–470 kilometres.

Unlocking Diamond Formation

The study revealed an unusual coexistence of nickel-iron alloy and nickel-rich carbonate within the same inclusions. Normally, these materials would react instantly and could not exist side by side. Their preservation points to a process known as a metasomatic redox-freezing reaction, in which oxidised, carbon-rich melts infiltrate metal-bearing mantle rock.

This finding strengthens the theory that diamonds can form from reactions between carbonates and reduced metals in the mantle—a mechanism first suggested by evidence at shallower depths.

It may also explain why some natural diamonds contain nickel atoms within their crystal structure, solving a mystery that has long puzzled geologists.

Insights into Volcanoes and Kimberlites

The implications extend beyond diamond formation. The reactions preserved within these inclusions suggest that the mantle becomes enriched with elements like carbon and potassium. This enrichment may be a critical step in generating kimberlite magmas—the volcanic eruptions that transport diamonds to the surface.

A Scientific Treasure

For the DCLA, this discovery highlights yet another dimension of diamond’s significance. Beyond their role as treasured gems, diamonds are windows into Earth’s inaccessible depths, preserving geological secrets for millions of years.

As Yaakov Weiss put it:
“Diamonds act as tiny time capsules, capturing a moment of mantle chemistry in action.”

Source: DCLA

South Africa Joins Luanda Accord to Promote Natural Diamonds

South Africa is to sign up to the milestone Luanda Accord, which is funding a global campaign to promote natural diamonds.

It joined the governments of Angola, Botswana, Namibia, Sierra Leone and the Democratic Republic of the Congo, in June in pledging to contribute 1 per cent of the value of their rough sales annually.

But the move was only approved South Africa’s cabinet last week. Minister in the Presidency Khumbudzo Ntshavheni and confirmed the decision on 7 August, committing 1 per cent of the annual revenues generated from rough diamond sales to a global marketing fund led by the Natural Diamond Council (NDC).

South Africa, the world’s sixth biggest diamond producing nation by value, saw sales down by 21 per cent last year amid the global slowdown.

The country’s mining minister mining minister Gwede Mantashe was listed as a signatory to the Luanda Accord in an official communique after the agreement.

But a conflicting Reuters report said South Africa did not actually sign at the time and has only done so now.

The Luanda Accord is seen as a potential turning point for the sector, aiming to rebuild consumer trust and interest in natural diamonds over lab growns, by emphasizing their origin, authenticity, and community impact.

It will highlight the positive economic and social contributions of the natural diamond industry to producing nations and their communities.

Governments of the African diamond producing nations have been joined by the Antwerp World Diamond Centre (AWDC), African Diamond Producers Association, India’s Gem and Jewellery Export Promotion Council (GJEPC) and the Dubai Multi Commodities Centre (DMCC).

Source: DCLA

Petra to Refinance as Sales Slide by a Third

Petra Diamonds has announced plans for a major refinancing program – together with a 33 per cent slide in revenue for FY2025.

The UK-based miner, which has recently sold off two of its four diamond mines, is facing substantial financial and operational challenges.

It is proposing an extension of senior secured bank debt and notes due early next year to 2029 and 2030 respectively, together with a $25m rights issue.

The moves are designed to preserve cash, extend debt repayment timelines, and ensure Petra can continue investing in its two remaining core mines – Cullinan and Finsch, both in South Africa.

Petra’s latest sales results, published on the same day (8 August) as its refinancing package, show some positive momentum in the market with like-for-like rough diamond prices from its latest tender, but revenue for Q4 was down 49 per cent year-on-year to $50m.

Revenue for FY2025 was $206m, down 33 per cent year-on-year from $309m and net debt increased to $264m.

“We would once again like to acknowledge the resilience shown by our employees in navigating a very difficult period for the company and the diamond sector as whole,” the company said in its Q4 and FY 2025 Operating Update.

Meanwhile, in its refinancing proposal Petra said: “Petra has, over the past 18 months, been focused on an internal restructuring that has resulted in a simpler and more streamlined business and operating model.

“This has included the sale of the Koffiefontein and Williamson mines, multiple labour restructuring initiatives and an optimisation and smoothing of the group’s capital development profiles.”

Source: DCLA

Petra Diamonds hits all-time low as cash burn continues

Petra Diamonds is to begin discussions with financiers on refinancing a $273m bond that matures in March next year amid scepticism that the company will survive the event.

The ratings agency S&P last week downgraded the company’s credit to CCC on the increased likelihood of default, and maintained a negative outlook.

Shares in the company fell 10% today shortly after the company posted its third quarter results. Petra is now trading at a fresh all-time low and is valued at only £34m on the London Stock Exchange.

While its remaining two assets – the Cullinan and Finsch mines in South Africa – had a solid three months operationally, with a quarter to go, full year guidance has been maintained at 2.4 to 2.7 million carats.

However, the company is still burning cash.

Petra drew on a further $33m as consolidated net debt increased to $258m as of end-March, which the company put down to working capital requirements.

The truth is that the company is desperately in need of improved diamond prices, which have continued to trough this year amid economic uncertainty generated by US President Donald Trump’s on-off tariff regime.

Petra said in April that it had postponed the sale of about 200,000 carats of diamonds from the Cullinan mine near Pretoria because of the “considerable diamond market uncertainty caused by the US tariffs announcement”.

“S&P believes the company faces mounting liquidity challenges amid uncertainty regarding the recovery of the rough diamond market and approaching debt maturities in 2026, with increased likelihood of default – including distressed exchange or debt restructuring – over the next 12 months, if Petra is unable to refinance its debt maturities on time,” said analysts at Berenberg Bank in a note last week.

Commenting on the third quarter results – in which revenue fell to $42m from $106m in the comparative quarter last year (buoyed by sales from a deferred tender) – interim joint CEOs Vivek Gadodia and Juan Kemp, said Petra had experienced “a very difficult diamond market”.

They added: “We believe the steps we have taken over the past 12 months position Petra well for a successful refinancing. We will now look to commence engagements with our lenders on the refinancing of our debt maturing in early 2026.”

Source:miningmx.com

Petra Diamonds delays sale amid US tariffs uncertainty

Africa-focused Petra Diamonds has postponed a scheduled sale of about 200,000 carats of diamonds from its Cullinan mine in South Africa, citing uncertainty over the impact of new US tariffs.

Last week, US President Donald Trump announced sweeping import tariffs ranging from 10% to over 100%, including a 30% duty on many South African goods. The move has injected volatility into the global diamond market.

Petra, which holds the world’s third-largest diamond resource, said the decision to delay the Cullinan sale aims to secure stronger market prices once the tariff situation becomes clearer. The sale had been expected to generate approximately $18 million in revenue.

Despite the disruption, the company managed to complete sales from its Finsch mine in South Africa and the Williamson mine in Tanzania before the tariffs were introduced.

South Africa remains one of the largest diamond exporters to the US, alongside India.

So far in the 2025 financial year, Petra has earned $103 million from rough diamond sales, down from $138 million during the first five tenders of the previous year.

Source: mining.com

Duffy resigns as Petra CEO, interim revenue knocked by market weakness

Independent mining group Petra Diamonds, which owns and operates diamond mines in South Africa, has appointed two interim CEOs Vivek Gadodia and Juan Kemp to succeed Richard Duffy, who has resigned by mutual agreement and with immediate effect.

Gadodia will oversee all corporate matters of the group, while Kemp will oversee all operational matters.

At this point, they will not be appointed as directors.

Vivek joined Petra in 2021 with his roles having included planning and corporate planning executive and chief restructuring officer. He previously worked for Sasol in various engineering, project management and corporate positions over a 15-year period.

Kemp, meanwhile, joined Petra in 2009 when the company bought its flagship Cullinan mine from fellow miner De Beers.

Kemp was GM of the mine since 2011 before having been appointed as a chief technical officer in 2019 and operations executive for the Cullinan mine in 2024.

His earlier career included positions at De Beers and AngloGold Ashanti.

The appointments of the interim CEOs come as Petra struggles with lower earnings generation and high debt.

The company’s results for the six months ended December 31, 2024, reflect Petra’s progress in implementing cost reduction plans and smoothed capital profiles, despite weakness in the diamond market.

Petra managed to reduce its mining and processing costs from continuing operations by 19% year-on-year to $98-million.

However, the group’s revenue was also lower by 30% year-on-year, or $49-million, at $115-million owing to additional revenue of $50-million having been carried over from tenders into the prior comparable period.

Adjusted earnings before interest, taxes, depreciation and amortisation amounted to $15-million, which was lower than the $38-million adjusted Ebitda reported in the first half of the prior financial year.

The company’s basic loss a share from continuing operations was $0.30, or $0.13 on an adjusted basis.

Operational free cash inflow of $16-million in the six months under review compares with a $21-million outflow in the first half of the prior year, which Petra says largely reflects the impact of its cost reduction measures, capital smoothing and working capital management.

The lower revenue and earnings over the financial year of 2024, caused Petra to not meet its required leverage and interest cover covenant ratios in its revolving credit facility measured at December 31, 2024.

Petra has since obtained a waiver from the lender, Absa Bank, related to these covenant breaches, and is restarting engagements with lenders regarding the refinancing of its debt.

The group’s consolidated net debt was $215-million as at December 31, compared with $193-million at the end of June, owing to diamond market weakness and the timing of Petra’s tender sales.

Three tender sales took place during the first half of the 2025 financial year (the six months ended December 31), while four have been scheduled for the remainder of the financial year.

Petra realised an average price of $103/ct in the reporting period, which reflects the positive impact of product mix over the period offsetting the overall weaker diamond pricing environment.

OPERATIONS

The group has achieved cost reductions through sustainably lowering overheads and on-mine cost optimisation with limited impact to its operations.

Petra completed the sale of its interest in the Koffiefontein mine to the Stargems Group in the six months under review, which allowed the group to avoid closure-related costs of $23-million.

Petra also entered into an agreement in January to sell its interest in the Williamson mine, in Tanzania, to Pink Diamonds Investments for a headline consideration of $16-million.

The group expects the sale of its interest in the Williamson mine to be completed by the end of the calendar year.

The Finsch mine has transitioned into new production areas called 78-Level Phase 2, with steady operations having been reported over the past few months.

In turn, production from the CC1E zone at the Cullinan mine has also started in the interim period, while Petra continues to advance more extension projects at both of these mines, as well as life-of-mine plan reviews.

Petra intends to re-engage its lenders with a revised business plan and updated cost-savings initiatives, as part of its overall restructuring plan.

The group is targeting net free cashflow generation for the remainder of the financial year, as well as more efforts to make the company resilient to pricing weakness.

Source: DCLA

New BHP/Anglo Bid “Almost Oven-Ready”

A renewed takeover bid of Anglo American by rival miner BHP is “almost oven-ready,” according to City sources cited by the UK Sunday Times newspaper (12 January).

Australia-based BHP made an unsuccessful bid for the company that owns De Beers last April, increasing from its all-share offer of $39bn to just over $49bn before it was rejected by the Anglo board.

But the six-month cooling-off period imposed by UK regulators is now over and speculation is again mounting that BHP is set for a new assault.

“Anglo’s management have got the bit between the teeth,” one investor with big holdings in both companies told the Sunday Times.

“Ironically, this may make them more of a target. But the price they could demand for Anglo would be higher.”

BHP is keen to acquire Anglo’s copper mines but has made it clear that it has no interest in De Beers, or in its PGM (platinum group metals) assets.

Since the failed BHP bid, Anglo has raised $4bn from the sale of coal mines, and is preparing to dump De Beers and its PGNs, all of which makes it more attractive to BHP.

Anglo announced in May, shortly after the BHP bid, that it would sell or demerge both its diamond and PGM operations (as well as nickel and steelmaking coal) to focus on copper and other more profitable parts of its business.

De Beers, which seen sales slump in 2023, would “be divested or demerged, to improve strategic flexibility for both De Beers and Anglo American,” the company said.

Source: DCLA

Namibia bemoans popularity of lab-grown diamonds on global market

Namibia is one of Africa’s top five diamond exporters, right behind Angola, Botswana, and South Africa. In 2022, the country exported more than $940 million worth of diamonds.

The world’s demand for natural diamonds has bounced back from a slump during the COVID-19 pandemic, with Namibia’s largest marine dining company, Debmarine, reporting a sales increase of 83% in 2022 from the previous year.

Still, Debmarine CEO Willy Mertens is worried about competition from synthetic diamonds, sector of the business that could cost many Namibians their jobs.

Though trained jewelers can tell the difference between lab-grown and natural diamonds, there’s nothing obvious to distinguish lab-grown diamonds from natural ones.

The Modern Mining publication recently said that in 2022, lab-grown diamond jewelry surpassed 10% of the market of global jewelry sales for the first time. The publication said artificial diamond sales are forecast to continue growing at an annual double-digit percentage rate in coming years.

Namibia, where workers extracted 2.1 million carats in diamonds in 2022, is embarking on a campaign to tout natural diamonds as environmentally sound and holding greater value for the money.

“We’ve seen in the past couple of years that lab-grown diamonds, or synthetics as you call them, have sort of infiltrated the natural diamond market,” said Mertens. ” … people were first marketing them as real diamonds and we’ve done a lot of work around trying to differentiate them.”

One of the challenges of marketing Namibian natural diamonds is the environmental impact that diamonds have on the landscape.

Mertens said Debmarine invests a significant amount of its profits into environmental rehabilitation and restoration of landscapes and the seabed damaged by mining.

“The restoration of the seabed actually happens naturally as the waves move,” Mertens said. “So what we are doing is that we are monitoring that, and what we do is we mine out a specific area and we leave an area next to it vacant, and over time we monitor how the area where we have recovered diamonds looks like compared to the one that was not touched and we’ve seen that it takes about three to 10 years maximum for that to completely restore. By completely restoring, mean about 70% of the organisms have returned to that place. On the land, it is sand that we are moving and what we do now is that we are using that same sand to keep the sea walls in tact.”

Mertens recently paid a courtesy call on Namibian President Nangolo Mbumba, to introduce the De Beers global ambassador for natural diamonds, Hollywood actor Lupita Nyong’o, and talk to the president about challenges facing Namibia’s diamond industry.

De Beers Natural Diamonds Global Ambassador Lupita Nyong’o, left, Namibia President Nangolo Mbumba, center, and Debmarine CEO Willy Mertens in Windhoek, Namibia, July 19, 2024. (Vitalio Angula/VOA)
De Beers Natural Diamonds Global Ambassador Lupita Nyong’o, left, Namibia President Nangolo Mbumba, center, and Debmarine CEO Willy Mertens in Windhoek, Namibia, July 19, 2024. (Vitalio Angula/VOA)
President Mbumba lamented a proposal for the Kimberley process — the process meant to screen out so-called “conflict diamonds” from entering the international market — to begin certifying all diamonds in Antwerp, Belgium.

The Group of Seven largest economies said that is an effort to prevent Russian diamonds from being sold abroad.

Mbumba said the measure would hurt African diamond producers.

“Recently, the decision was made by the G7 countries to route all rough and polished diamonds destined for G7 countries via Belgium,” said Mbumba. “This decision poses a serious risk and threat to our economies, especially the economies of Angola, Botswana and Namibia by increasing the cost as well as curtailing freedom of trade for our countries’ products.”

Namibia’s president said he and his counterparts from Angola and Botswana have written a letter to the G7 to ask them to halt their plans.

Source: DCL

Petra defers another diamond tender amid weak demand

Petra Diamonds has once again postponed the sale of roughs, holding on to the diamonds from its South African operations that would have been offered during the August/September event of the year, amid low demand.

The tender of diamonds from Petra’s Williamson mine in Tanzania will proceed as planned, the company said. It noted that this decision aimed to “support steps taken by major producers to restrict supply during this period of weaker demand.”

Rough diamond parcels from the miner’s South African operations, originally earmarked for sale as part of the first tender of fiscal year 2025, are now planned to be offered in the second tender, expected to close mid-October 2024.

Petra will sell diamonds from its Williamson mine in Tanzania during August/September as planned.

Petra’s South African producing operations include the Cullinan and Finsch mines.

“Our expectation is that supply discipline, together with the expected seasonally stronger demand as we head towards the festive season, will provide some pricing support later in the calendar year,” chief executive Richard Duffy said in the statement.

Petra had differed in June the majority of what would have been its sixth sale for its 2024 fiscal year to the August/September offering, or tender one of fiscal 2025.

The company said recent steps taken to improve its financial position have provided it with the ability to adjust the timing of its tenders based on market conditions.

Source: DCLA

108ct. Pink Diamond at Heart of New Partnership

Dubai-based manufacturer Choron has signed an agreement with Storm Mountain Diamonds to cut and polish a 108.39-carat stone from the Kao mine in Lesotho.

Storm Mountain, a joint venture between Namakwa Diamonds and the Lesotho government, recovered the type IIa diamond in March. The stone is one of the largest pink diamonds ever discovered, Storm Mountain said last week.

“Storm Mountain continues to consistently deliver extraordinary diamonds, and this diamond further cements the Kao mine as the primary producer of pink diamonds globally,” said Storm Mountain board chairman Robert Cowley. “We are thrilled to enter into this agreement with Choron, and we look forward to the next chapter of this diamond’s story.”

Storm Diamonds will retain a minority share in the stone, while Choron will manufacture and market it, Choron CEO Anshul Gandhi told Rapaport News. The company has not disclosed the other terms of the partnership.

“It is a privilege for Choron to unlock the secrets within this remarkable pink diamond, and we look forward to revealing the story of this historic diamond,” said Ghandi. “Our artisans will meticulously transform this rough diamond into an array of polished diamonds that will be remembered for generations to come.”

Source: DCLA