De Beers Halts Production at South African Diamond Mine Amid Price Slump
The company cites a prolonged decrease in gemstone prices and rising lab-grown alternatives as reasons for the two-year pause at the Venetia mine.
De Beers has suspended operations at its Venetia mine, South Africa's largest diamond producer, for a period of two years due to a sustained decline in diamond prices. The halt is intended to cut costs for the company, which is owned by London-listed Anglo American.
The Venetia mine accounts for approximately 10 percent of De Beers' global production and 40 percent of South Africa's total diamond output. The mine employs around 3,500 workers.
This decision comes as De Beers faces challenges from weakening global demand for natural diamonds, particularly in China, and an increasing market presence of laboratory-grown diamonds. In contrast, demand for copper, a commodity Anglo American is increasingly focusing on as it seeks to divest De Beers, has seen a significant boost driven by the green energy transition and the expansion of data centers.
Despite the current market conditions, De Beers boss Al Cook noted that there are encouraging signs of consumer demand growth in the United States and other regions.