De Beers is to pause production at its flagship Venetia mine in South Africa for two years as part of a sweeping cost-cutting drive. The world’s leading diamond producer announced the decision on Monday, aiming to streamline its global operations and weather a protracted market downturn.
The move aligns with "Origins", a restructuring strategy launched in 2024 to reduce overheads and refocus on higher-value assets. De Beers has already shaved more than US$100 million from its annual central costs. The Venetia mine, which transitioned to a US$2.3 billion underground operation in 2023, typically yields smaller, lower-value stones that have been hardest hit by a recent slump in diamond prices.
Chief executive Al Cook stated the changes would "ensure greater business resilience in the near term" while supporting "long-term value creation." The decision comes at a critical juncture, as parent company Anglo American actively prepares to divest its majority stake in the legendary diamond miner.
While the freeze suspends operations at South Africa's largest diamond mine, impacting some of its 3,500 staff, De Beers remains resilient. The company highlighted recovering consumer demand in the US, particularly for high-quality natural stones. De Beers will now remodel production across its wider portfolio to cover international supply gaps, maintaining its overall 2026 output guidance of 21 to 26 million carats. (Photo courtesy: De Beers)
31-08-2026
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