De Beers will suspend production at its Venetia Mine in South Africa’s Limpopo province for two years as part of a broader cost-cutting and restructuring strategy, citing prolonged weakness in the global diamond market.
Venetia is South Africa’s largest diamond mine by value, accounting for more than 40% of the country’s annual diamond production and around 10% of De Beers’ global output. The company said the temporary shutdown will allow it to reduce costs, rephase capital expenditure, and improve the long-term efficiency of its underground operations while maintaining its overall production guidance.
The decision comes as the diamond industry grapples with weak demand for rough diamonds, particularly in China, lower prices, and growing competition from lab-grown diamonds. Since 2024, De Beers has removed more than $100 million in annual overhead costs through business streamlining and the sale or closure of non-core assets.
The production pause also coincides with efforts by parent company Anglo American to sell De Beers as it shifts its focus toward copper and other strategic minerals. Despite the temporary halt at Venetia, De Beers said it remains committed to its long-term operations in South Africa and expects the mine to continue producing once the suspension ends.
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