De Beers Scales Back Namibian Marine Diamond Mining, Q2 Output Falls 5% Amid Fleet Changes
De Beers has reported a 5% year-on-year decline in Namibian rough diamond production for the second quarter of 2025, citing planned reductions in offshore mining by Debmarine Namibia.
The production drop follows the retirement of the Coral Sea vessel and the suspension of operations on the Grand Banks—both key assets in Namibia’s marine diamond fleet.
While the Coral Sea has been permanently decommissioned as part of a fleet optimisation strategy, a final decision on the future of the Grand Banks is still pending.
These vessels played a major role in sustaining Namibia’s offshore diamond output, which traditionally represents the bulk of the country’s production. Their removal has significantly reduced Debmarine Namibia’s seaborne mining capacity.
To mitigate the impact, De Beers has ramped up higher-grade land-based mining through its Namdeb joint venture. Operations in areas like Oranjemund have shown stable output, supported by recent reinvestments.
Globally, De Beers’ rough diamond production fell 36% in Q2 2025 to 4.1 million carats, underlining broader market weakness. Namibia’s contribution was 0.5 million carats during the quarter.
Despite the decline, De Beers has maintained its full-year production forecast of 20 to 23 million carats but warned of tough trading conditions.
The company cited weaker sales margins and potential negative EBITDA for the first half of the year, despite relatively stable consumer demand.
Looking ahead, marine diamond mining off Namibia’s coast is expected to remain subdued for the rest of 2025 unless De Beers reverses course on its vessel reductions or invests in new marine assets.
The shift away from legacy vessels marks a strategic turning point for Namibia’s diamond industry. It also raises broader questions about De Beers’ future investment plans—particularly as parent company Anglo American continues its review of its stake in the diamond giant.
