De Beers idles South Africa’s top diamond mine

De Beers will suspend production at its Venetia mine, South Africa’s highest-value diamond operation, for two years as the company cuts costs and streamlines its business to withstand a prolonged downturn in the rough diamond market.

The Anglo American (LSE: AAL)-controlled diamond producer said the pause will reduce and defer spending on Venetia’s underground expansion while maintaining investment in infrastructure needed to ramp up production when market conditions recover. The move is not expected to affect De Beers’ overall production targets because output will be shifted to other operations. 

Venetia produced 2.23 million carats in 2025, accounting for 10% of the group’s rough diamond output, and employs about 4,400 people. Production from the mine’s $2.3-billion underground operation began in July 2023 after open-pit mining ended in December 2022.

“Our commitment is to focus on value, improve resilience and position De Beers to compete strongly as industry conditions recover,” chief executive Al Cook said in a statement.

Sale ahead

The production halt is the latest step in a broader overhaul as De Beers prepares for a sale by Anglo American and grapples with weak natural diamond demand, falling prices and growing competition from synthetic stones. The company also plans to simplify its global operating model and reduce corporate costs. 

Last week, it cut official rough diamond prices at its first sales cycle under new supply agreements that reduced the number of sightholders from about 70 to between 45 and 50, concentrating sales among its largest customers.

Anglo American put De Beers up for sale in May 2024 as part of a wider restructuring. Cook said last month the transaction had “never been closer” and expressed hope it would be completed “in weeks rather than months.” 

Industry speculation has linked several mining companies and governments to a potential bid.

Marketing

The company, which helped create the modern diamond engagement ring market through its “A Diamond is Forever” campaign, remains one of the world’s largest diamond producers with operations in Botswana, Namibia, Angola, South Africa and Canada.

The Venetia decision also reflects a broader tightening in global supply. Production pauses and mine closures in South Africa, Lesotho and Canada are expected to reduce worldwide rough diamond output by the end of 2027 as producers prioritize profitability over volume.