De Beers Halts Production at South Africa's Largest Diamond Mine for Two Years
The company cites a 'protracted' fall in diamond prices and weaker demand, particularly from China, alongside competition from lab-grown alternatives.
De Beers has suspended operations at its Venetia mine, South Africa's largest diamond producer, for a period of two years. The decision, announced on July 13, 2026, is a direct response to a sustained decline in the price of diamonds.
The Venetia mine is a significant asset for De Beers, contributing approximately 10% of the company's global diamond output and accounting for 40% of South Africa's total diamond production. The mine employs around 3,500 workers.
This move also impacts Anglo American, the London-listed parent company of De Beers, as it progresses with its strategy to divest the diamond business and concentrate on copper production. Demand for copper has seen a significant boost from the green energy transition and the burgeoning AI sector, which relies on data centers.
Several factors have contributed to the slump in diamond prices. Weaker consumer demand, especially in China, and the increasing prevalence of laboratory-grown diamonds as a more affordable alternative have put pressure on the natural diamond market. Despite these challenges, De Beers boss Al Cook expressed optimism, noting "encouraging signs of consumer demand growth in the US and beyond."