De Beers has announced plans to suspend production at South Africa’s largest diamond mine, Venetia, for two years as the company moves to cut costs amid continued weakness in the global natural diamond market. The company, majority-owned by mining giant Anglo American, said rough diamond trading conditions remain difficult, with declining production levels and some mining companies reducing operations or closing sites. De Beers said the temporary shutdown is part of efforts to improve business resilience and manage costs while adjusting spending on the mine’s underground expansion project.
Located near South Africa’s borders with Botswana and Zimbabwe, Venetia has operated for more than three decades and is the country’s largest diamond producer by value. The mine contributes more than 40% of South Africa’s annual diamond production and employs around 4,400 workers. The company began developing Venetia’s underground operations in 2012 to access diamond deposits located more than 1,000 metres below the surface. The project was expected to produce approximately four million carats of diamonds annually once fully operational.
The decision follows other cost-cutting measures by De Beers, including the suspension of the Tuzo Phase 3 expansion project at the Gahcho Kué mine in Canada earlier this year. De Beers Chief Executive Officer Al Cook said the company is taking steps to strengthen its long-term position as the diamond industry undergoes major changes. “We recognize the protracted challenging conditions as the diamond industry evolves, though we are encouraged by signs of consumer demand growth in the US and beyond, particularly in higher quality diamonds,” Cook said. The natural diamond sector has faced increasing pressure from falling prices, changing consumer preferences and competition from laboratory-grown diamonds, which have gained popularity due to their lower cost.
