JOHANNESBURG, July 14 – De Beers has announced on Monday that it will suspend production for two years at its Venetia Mine in South Africa, citing persistent weakness in global diamond markets and mounting pressure from declining demand and changing consumer preferences.
The mine, South Africa’s largest diamond operation by value, accounts for more than 40% of the country’s annual diamond production and approximately 10% of De Beers’ global output. Around 4,400 jobs are expected to be directly affected by the temporary shutdown.
The diamond company framed it as cost discipline against a punishing cyclical downturn, weak Chinese and US demand, an oversupply of rough stones out of Angola, and the relentless rise of lab-grown alternatives eating into the market for exactly the smaller, lower-value goods Venetia produces in volume.
Venetia has become one of De Beers’ least profitable operations. The company’s South African diamonds generated an average of $66 per carat last year, compared with $110 per carat in Botswana and $353 per carat in Namibia, making Venetia the lowest-value operation within De Beers’ portfolio.
Anglo American, De Beers’ majority owner at 85%, put its stake up for sale in 2024 as part of a broader restructuring effort that was also aimed at fending off a hostile takeover approach from BHP. That sale process has dragged for well over a year.
Speaking at the Reuters NEXT Europe conference last month, De Beers Chief Executive Al Cook said a transaction had “never been closer,” adding that the sale could be completed within weeks rather than months.
Angola proposed in October 2025 to acquire the full 85% Anglo stake outright, a striking ambition from a country that is not currently a De Beers shareholder at all before scaling that ambition back by February 2026 to a smaller 20-30% interest, evidently after recognizing the scale of capital such a purchase would require.
Mining majors and sovereign wealth funds have also reportedly entered the bidding, running in parallel with high-level talks involving the Botswana government, which already holds the remaining 15% of De Beers and has been pushing for a larger stake as part of any transaction.
Several parties are reportedly interested in acquiring a stake in the diamond producer. The Botswana government, which already owns the remaining 15% of De Beers, is seeking to increase its shareholding, while Angola has also expressed interest after initially proposing to acquire Anglo American’s entire stake before scaling back its ambitions to a smaller holding.
The ownership negotiations are widely viewed as a significant shift in Africa’s mining landscape. Rather than participating solely as resource-producing nations, African governments are increasingly seeking direct ownership of companies that control global marketing, pricing and distribution of strategic minerals.
For Botswana, expanding its stake would build on decades of partnership through Debswana, its long-standing joint venture with De Beers. A larger equity position in the parent company would provide greater influence over strategic decisions extending beyond mining operations to include diamond marketing and international sales.
Angola’s interest reflects a broader effort by African resource-producing countries to capture more value from their mineral wealth. The country has been expanding its diamond sector while seeking greater participation across the industry’s value chain.
Despite the ownership opportunities, the sector continues to face structural challenges.
The rapid growth of lab-grown diamonds has altered consumer demand, particularly in lower-value segments of the market. Analysts increasingly view this as a long-term shift rather than a temporary market cycle, prompting De Beers to focus more heavily on premium natural diamonds positioned around rarity and quality.
Mining analysts have also cautioned that prolonged care-and-maintenance periods can increase the risk that suspended operations never fully reopen, particularly if future owners determine that restarting production is no longer economically viable.
The eventual outcome of the De Beers sale could reshape Africa’s role in the global diamond industry. If producer nations such as Botswana secure greater ownership and influence, it would represent a significant move beyond traditional royalty and tax revenues toward participation in the higher-value segments of the global diamond business, including marketing, pricing and international distribution.
