We recognise the protracted challenging conditions as the diamond industry evolves, though we are encouraged by signs of consumer demand growth in the US and beyond, particularly in higher quality diamonds.

  • Al Cook, CEO De Beers

De Beers announced on Monday that it will pause production at South Africa’s largest diamond mine for two years to reduce costs while trading conditions remain tough. The Venetia mine, located 80km to the west of the town of Musina in the Limpopo province, has been run by De Beers for over 30 years and accounts for more than 40 percent of the country’s annual diamond production. The mine employs about 4,400 staff members, who are now at risk of losing their jobs. While the company aims to reduce costs, it will also rephase capital expenditure on its underground project. De Beers started digging beneath Venetia in 2012, seeking to reach gems at a depth of more than 1,000 meters (3,250 feet). The facility was expected to produce about four million carats of diamonds annually.

De Beers is majority-owned by British mining giant Anglo American, which is seeking to offload its stake in the company as the natural diamond market faces intense pressure from lab-grown gems. CEO Al Cook stated that the company is making a number of changes to ensure greater business resilience while supporting long-term value creation.

The decision to pause production at the Venetia mine follows a similar decision earlier this year to pause the Tuzo Phase 3 expansion project at the Gahcho Kué mine in Canada. De Beers is expected to focus on other projects that will help the company maintain its competitive edge in the global diamond market.

Key Facts

  • De Beers will pause production at South Africa’s largest diamond mine for two years.
  • The mine, located in the Limpopo province, employs about 4,400 staff members.
  • The company aims to reduce costs while rephasing capital expenditure on its underground project.
  • De Beers started digging beneath Venetia in 2012, seeking to reach gems at a depth of more than 1,000 meters.
  • The facility was expected to produce about four million carats of diamonds annually.

South Africa is one of the world's leading diamond producers, and the country's diamond industry has a significant impact on the economy. The decision to pause production at the Venetia mine will have a ripple effect on the local economy, potentially affecting thousands of people who rely on the mine for their livelihood.