Diamond giant De Beers is set to suspend production at its South African mine for two years, as the former monopoly continues to grapple with one of the most severe crises ever to hit the sector.
Valued at US$80 billion, the global diamond industry is under intense pressure. What began as a post-pandemic downturn has been compounded by a decline in Chinese demand for luxury goods and the rising popularity of synthetic diamonds. Trade tensions and the conflict in the Middle East have further weighed on the sector.
De Beers has been seeking to curb output in an effort to support prices, but a persistent oversupply of diamonds — including production from Angola — combined with subdued demand has undermined those efforts.
The company announced on Monday, 13 July, that it plans to close its Venetia mine in South Africa for two years as part of the cost-reduction programme it has been implementing. The decision is not expected to affect the company’s production targets, as De Beers intends to offset the reduction by ramping up output at other operations.
The move comes at a period of significant uncertainty for the company. Anglo American Plc, which has owned De Beers for several years, is at an advanced stage of a process to sell the business, following years of disappointing results that have tested investor confidence.
Source: Diário Económico
