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De Beers pauses South Africa's largest diamond mine as lab-grown gems reset the market

De Beers pauses South Africa's largest diamond mine as lab-grown gems reset the market

Money Moves

Venetia's two-year shutdown puts 40% of the country's diamond output and thousands of jobs in limbo while Anglo American tries to sell the struggling company

2 days ago: WSJ reports diamond mine closures leave South Africans with few alternatives

Overview

Updated 1 hour ago

De Beers is pausing production at Venetia, South Africa's largest diamond mine, for two years. The mine accounts for 40% of the country's diamond output and employs about 4,400 people, but every carat it sold last year fetched $66 while extraction cost $110.

The shutdown is one of several closures rippling through South Africa's diamond belt. Petra Diamonds is restructuring its Finsch and Cullinan mines, putting about 1,800 more jobs at risk. Lab-grown stones took more than 45% of American engagement-ring purchases and cost roughly 80% less than natural ones, so De Beers' parent Anglo American has cut the company's carrying value from $12.75 billion to $2.3 billion and is now selling it to a consortium led by former De Beers chief Gareth Penny.

Why it matters

Lab-grown diamonds reset the price of natural stones, forcing South Africa's biggest mine to close and threatening thousands of jobs in communities with few alternatives.

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Key Indicators

$2.3B
De Beers carrying value
Down from $12.75 billion in 2011; Anglo American has written down the brand three times in 3.5 years.
$105
Average rough diamond price per carat, H1 2026
Anglo American reported a 32% decline from the same period a year earlier.
45%
Lab-grown share of US engagement-ring purchases
Up from near zero a decade earlier; lab-grown retail prices fell 74% between 2020 and 2024.
4,400
Workers at Venetia mine
1,134 permanent employees plus 80 Johannesburg sorting-facility staff face retrenchment; most live in municipalities with few other employers.

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People Involved

Gareth Penny
Gareth Penny
Former De Beers managing director; leads consortium bidding for the company
Preferred bidder to acquire De Beers from Anglo American
JM
Jackie Mapiloko
De Beers spokesperson
Confirmed section 189 retrenchment consultations had begun
WV
Willie Venter
Deputy secretary general, Solidarity trade union
Warned of job losses in areas with few alternatives
NR
Nico van Rooyen
Divisional manager for minerals sector, United Association of South Africa (Uasa)
Argues the diamond industry still has a future

Organizations Involved

De Beers
De Beers
Diamond mining company
Pausing production at Venetia for two years; being sold by Anglo American

Diamond mining company, majority-owned by Anglo American, that once controlled about 90% of world rough supply.
Anglo American
Anglo American
Mining conglomerate
Selling De Beers; has written down its value three times

London-based mining giant and majority owner of De Beers.
Petra Diamonds
Petra Diamonds
Diamond mining company
Restructuring Finsch and Cullinan mines

Operator of South Africa's Finsch and Cullinan diamond mines, both now facing closure or restructuring.
National Union of Mineworkers (NUM)
National Union of Mineworkers (NUM)
Trade union
Flagged 1,200+ employees affected by Venetia shutdown

South Africa's largest mining union, representing workers at De Beers and Petra Diamonds.

Timeline

May 2024 September 2026

7 events Latest: 2 days ago
Tap a bar to jump to that date

  1. WSJ reports diamond mine closures leave South Africans with few alternatives

    Latest Media Coverage

    Weak sales and lab-grown stones endanger livelihoods of thousands of De Beers mine workers.

  2. Union reveals 1,200+ jobs at risk across diamond sector

    Labor

    NUM flags 1,134 Venetia staff and 80 sorting-facility workers; Petra's Finsch and Cullinan put 1,779 more jobs on the line.

  3. Retrenchment consultations begin at De Beers

    Labor

    Section 189 consultations start; job numbers not yet determined.

  4. De Beers announces two-year production pause at Venetia

    Corporate Announcement

    Cites weak trading conditions and high costs; plans continued investment in underground infrastructure during the pause.

  5. Botswana confirms preferred bidder for De Beers

    Merger/Acquisition

    Consortium led by former De Beers MD Gareth Penny selected as Anglo's preferred buyer.

  6. Anglo American writes De Beers down to $2.3 billion

    Financial

    Third impairment in 3.5 years; carrying value falls 82% from the 2011 peak of $12.75 billion.

  7. Anglo American announces intent to exit De Beers

    Corporate Strategy

    Anglo American publicly declared it would sell its majority stake in the diamond company.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

November 2020

Rio Tinto closes Australia's Argyle mine (2020)

After 37 years, Rio Tinto shut Argyle in Western Australia, the world's largest source of pink diamonds. The mine was depleted, not unprofitable, and its closure removed a major supply source from the market.

Then

Argyle pink diamonds became scarce, and their auction prices rose sharply after closure.

Now

Proved that removing a major supply source can support prices — the opposite of what De Beers faces, where demand has shifted to an unlimited lab-grown alternative.

Why this matters now

When a diamond mine closes, the market can absorb the loss. The difference here is that demand isn't returning to natural stones — it has moved to synthetic ones.

1930s

De Beers stockpiles during the Great Depression (1930s)

With diamond demand collapsed, De Beers chairman Ernest Oppenheimer halted sales and stockpiled rough stones rather than cut prices. The company controlled about 90% of world supply, so it could set the terms.

Then

Diamond prices held through the Depression, and the stockpile sold profitably after World War II.

Now

The episode cemented De Beers as the global price-setter for rough diamonds for five decades.

Why this matters now

De Beers today controls roughly a third of supply, and lab-grown producers are outside any cartel. The lever that protected prices in the 1930s no longer exists.

Sources

(9)
+3
BBC News Business Day Africanews AMIQ Insights The Wall Street Journal News24 Sunday Times (South Africa) SignalPro News Business Day