Johannesburg, South Africa (Running Africa) — De Beers will suspend production at its Venetia Mine, South Africa’s largest diamond mine, for two years as the global diamond industry grapples with falling demand, declining prices and growing competition from lab-grown diamonds.
The Venetia Mine, which produces more than 40% of South Africa’s diamonds and employs over 4,000 workers, will pause operations to reduce costs and carry out infrastructure upgrades while the company waits for market conditions to recover.
The announcement comes amid one of the deepest downturns in the natural diamond market in recent years.
Natural Diamond Demand Continues to Decline
De Beers said weakening demand for natural diamonds, particularly in China, has significantly impacted the industry, while the rapid growth of lab-grown diamonds has intensified pressure on traditional producers.
The slowdown has contributed to a sharp decline in prices, with the value of rough diamonds falling by nearly 50% since 2022, squeezing profit margins across the global mining sector.
Concerns Grow Over South African Mining Jobs
The temporary closure has sparked concerns over its potential impact on employment in South Africa’s mining industry, a sector that supports nearly 500,000 jobs and contributes more than 4% of the country’s gross domestic product (GDP).
Although De Beers says the suspension is temporary, industry observers warn the prolonged downturn in the diamond market could place additional pressure on mining communities that rely heavily on the sector for employment and economic activity.
Anglo American Reviews De Beers’ Future
De Beers, which is majority-owned by Anglo American, is reportedly being considered for sale as the mining giant reshapes its portfolio to focus on commodities such as copper, where demand is rising due to rapid growth in artificial intelligence (AI), renewable energy and advanced technology industries.
Founded in 1871 by Cecil Rhodes, De Beers remains one of the world’s best-known diamond producers. However, the company continues to navigate changing consumer preferences, increased competition from synthetic diamonds and ongoing scrutiny over its historical links to the colonial era.
The suspension of production at the Venetia Mine marks another significant challenge for South Africa’s mining sector as it adapts to shifting global demand and an evolving gemstone market.
