De Beers has announced it will suspend production at South Africa’s Venetia diamond mine for two years, a move that will sharply cut national output and reduce costs as the global diamond market continues to weaken.
The company said prolonged soft demand, falling prices and rising competition from cheaper lab‑grown stones have forced it to streamline operations at the country’s largest diamond mine, which produces more than 40 percent of South Africa’s diamonds and employs over 4,000 people.
The shutdown comes amid a steep decline in rough‑diamond prices, with industry indices showing values have almost halved since 2022 as consumers – particularly in China – buy fewer natural diamonds.
De Beers said the downtime will be used to upgrade Venetia’s infrastructure and increase capacity ahead of a planned restart once market conditions improve.
The decision adds pressure to South Africa’s mining sector, where unions have repeatedly warned of job losses in an industry that employs nearly half a million people and contributes more than four percent to GDP.
The suspension also comes as Anglo American, De Beers’ majority owner, is reportedly exploring a sale of the diamond business to refocus on copper, a mineral in high demand due to the global AI‑driven technology boom.
The company’s move follows similar scale‑downs by other major producers as the industry adapts to shifting consumer preferences, ethical concerns and the rapid rise of lab‑grown diamonds – a market De Beers itself has entered with lower‑priced synthetic stones.
JN/APA