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British multinational diamond company De Beers has announced it will suspend production at South Africa’s largest diamond mine, Venetia, for a two-year period as trading conditions in the global diamond market remain challenging. The decision comes amid mounting pressures from the rise of laboratory-grown gems and fluctuating consumer demand.
In a statement on Monday, the company, which is majority-owned by British mining giant Anglo American, explained that “rough diamond trading conditions are expected to remain challenging in the near-term” and that production is decreasing with several producers shutting mines.
“Consistent with recent actions to improve business resilience, De Beers intends to pause production at the Venetia mine in South Africa for two years to reduce costs while also rephasing capital expenditure on its underground project,” the statement added.
The Venetia mine, situated near South Africa’s borders with Botswana and Zimbabwe, has been under De Beers’ management for over three decades. It contributes more than 40 per cent of South Africa’s annual diamond production and remains the country’s largest producer by value. The operation employs roughly 4,400 staff members.
Since 2012, De Beers has been expanding the mine underground, aiming to access gem deposits at depths exceeding 1,000 metres (3,250 feet). The facility was previously projected to yield about four million carats of diamonds annually.
CEO Al Cook emphasised the company’s strategy to maintain long-term value amid market shifts.
“We recognise 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,” he said.
The Venetia pause follows a similar decision made earlier this year to halt the Tuzo Phase 3 expansion project at the Gahcho Kué mine in Canada, reflecting De Beers’ broader focus on cost control and business resilience as it navigates an evolving diamond landscape.
