De Beers to Halt Venetia Diamond Mine Production for Two Years as Weak Demand Reshapes Industry
De Beers has announced it will suspend production at its Venetia Mine in South Africa for two years as the company responds to the prolonged downturn in the global rough diamond market.
The mine, South Africa’s highest-value diamond operation, will temporarily halt production as De Beers reduces costs and restructures its business ahead of its planned separation from parent company Anglo American.
According to the company, the production pause will allow it to defer spending on Venetia’s underground expansion while continuing to invest in essential infrastructure needed to resume full operations when market conditions improve.
De Beers said the suspension is not expected to affect its overall production targets, with output being rebalanced across its other mining operations.
Venetia produced 2.23 million carats of diamonds in 2025, accounting for more than 10% of De Beers’ total rough diamond production.
The mine employs approximately 4,400 people and began underground production in July 2023 following the closure of its open-pit operation in late 2022.
De Beers Chief Executive Officer Al Cook said the company remains focused on improving efficiency and strengthening its long-term competitiveness.
“Our commitment is to focus on value, improve resilience and position De Beers to compete strongly as industry conditions recover,” Cook said.
The production suspension forms part of a broader restructuring programme as De Beers faces weaker demand for natural diamonds, declining prices and increasing competition from laboratory-grown diamonds.
The company has also streamlined its sales strategy by reducing the number of approved diamond buyers, known as sightholders, and lowering rough diamond prices under its latest sales cycle.
Meanwhile, Anglo American continues preparations to sell De Beers after announcing plans in 2024 to divest the iconic diamond producer as part of a wider corporate restructuring.
Cook recently indicated that the sale process is progressing well and could be completed in the near future, although no buyer has been officially announced.
De Beers remains one of the world’s leading diamond producers, with mining operations in Botswana, Namibia, Angola, South Africa and Canada.
The temporary closure of Venetia also reflects a broader trend across the global diamond industry, with several producers reducing output or suspending operations in an effort to balance supply with weaker demand and support market prices.
Industry analysts expect global rough diamond production to decline over the next few years as mining companies prioritize profitability over production volumes.
