The diamond industry is facing a historic turning point. The giant De Beers announced yesterday that it was suspending production at Venetia, South Africa’s largest diamond mine, for two years.
More than just a cost-cutting measure, this decision highlights the unprecedented crisis facing the diamond sector. Between the collapse in rough diamond prices and the fierce competition triggered by lab-grown diamonds, De Beers has been going through a very difficult period for several months.
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40 per cent of South African production
Located in the Limpopo province, the Venetia mine accounts for nearly 40 per cent of South Africa’s diamond production and around 10 per cent of De Beers’ global output. After more than thirty years of open-cast mining, the group had invested nearly 2.2 billion dollars to convert the site into an underground mine, capable of extracting deposits from depths of over 1,000 meters until 2046.
This investment, presented a few years ago as the cornerstone of De Beers’ future, has now come to a sudden halt. Since the record highs reached in 2022, rough diamond prices have in fact fallen by around 50 per cent.
Several factors explain this sharp decline: firstly, although the US market as a whole continues to support high-end natural diamonds, the ‘aspirational’ consumer segment in the United States is showing increasing interest in lab-grown diamonds. At the same time, the Chinese market remains sluggish, and the stocks held by Indian cutters following the record demand of 2022 are still abnormally high, which is holding back new orders.
De Beers’ revenue slump
In 2025, the average realised price thus fell to $142 per carat, compared with $152 recorded in 2024. De Beers’ revenue last year stood at $3.5 billion, compared with nearly $6.6 billion in 2022, which clearly illustrates the scale of the decline.
This decline in performance also explains why Anglo American, which owns 85 per cent of De Beers, is seeking to divest itself of its diamond subsidiary and intends to rationalise the operation of its mines. Indeed, the closure of the Venetia mine is not an isolated case. Earlier this year, De Beers had already suspended the Tuzo Phase 3 extension at the Gahcho Kué mine in Canada.
It must be said that all the major diamond producers are now prioritising the optimisation of production, rather than engaging in a price war that could lead to a fall in the value of their stock. “We are evolving our business to strengthen its short-term resilience, whilst preserving long-term value creation,” said the group’s chief executive, Al Cook.
Key points:
• De Beers is suspending production at Venetia for two years, its largest diamond mine, which accounts for nearly 40% of South Africa’s diamond output and around 10% of De Beers’ global production.
• The move reflects the deep crisis facing natural diamonds, with rough diamond prices down by around 50% since 2022, amid competition from lab-grown diamonds, weak Chinese demand and high inventories in India.
• De Beers is prioritizing value preservation over volume, as revenues fell to $3.5 billion in 2025 from nearly $6.6 billion in 2022, while Anglo American is seeking to divest its diamond subsidiary.
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