In brief
De Beers has suspended production at the Venetia mine, the world’s largest diamond‑producing site in South Africa, for two years due to shrinking demand and intense competition from cheaper lab‑grown diamonds. The pause will allow the company to cut costs and upgrade infrastructure, with an eye to reopening when market conditions improve. The move follows a sharp decline in global diamond prices and a shift in consumer preference, especially in China. De Beers, majority‑owned by Anglo American, is also pivoting to the copper sector amid the AI boom, while workers’ unions warn of potential job losses in the sector.
Mining giant De Beers has suspended production at South Africa’s largest diamond mine for two years as demand drops and lab‑grown gems gain market share.
The pause at the Venetia mine, which supplies more than 40 percent of the country’s diamonds and employs over 4,000 workers, follows a steep fall in global diamond prices and a shift in buyer preference, particularly in China. This decision coincides with the International Diamond Consultants’ rough‑diamond price index slipping to almost half its 2022 level.
De Beers, majority‑owned by Anglo American, is reportedly selling the company and shifting focus to the expanding copper market fueled by recent AI breakthroughs. The miners plan to use the two‑year downtime to improve infrastructure efficiency and increase capacity, reading the mine back to service once market conditions become favourable.
The company’s iconic “A Diamond is Forever” campaign, launched in 1947, helped cement diamond rings as a marriage staple, but changing consumer values have eroded its influence. Lab‑grown diamonds, priced significantly lower, have attracted shoppers concerned about sourcing ethics and environmental impact.
De Beers is not the first large producer to temper output; however, its historical legacy—established in 1871 by Cecil Rhodes, a colonial figure tied to land dispossession and segregation—continues to provoke debate over decolonising institutions bearing his name.
