De Beers, Africa’s largest diamond miner, recorded a sharply wider loss in 2025 as subdued global demand, weaker Chinese luxury spending and rising competition from lab-grown stones weighed heavily on operations across Botswana, Namibia and South Africa.
The company reported an underlying EBITDA loss of US$511 million for the year, compared with a US$25 million loss in 2024, reflecting mounting pressure on the global diamond market. Total rough diamond production fell 12% to 21.7 million carats, as output was adjusted to align with softer demand and elevated inventories throughout the supply chain.
Revenue held broadly steady at around $3.5 billion, but lower realised prices and stock rebalancing significantly eroded profitability. The downturn mirrors broader sector challenges, including reduced consumer appetite for luxury goods in China, a key market for high-value stones, and the rapid growth of laboratory-grown diamonds, which continue to gain market share globally.
De Beers’ core African operations, anchored in Botswana, South Africa and Namibia, faced sustained pressure. In Botswana, production is conducted through the Debswana joint venture, which operates the Jwaneng and Orapa mines. Jwaneng is widely regarded as the world’s most valuable diamond mine by revenue. Given Botswana’s reliance on diamond revenues for fiscal income and foreign exchange, prolonged price weakness has implications that extend beyond the mining sector into national economic stability.
In South Africa, the Venetia mine, now operating underground, continued production amid softer market conditions, while Debmarine Namibia’s offshore mining operations also moderated output to reflect subdued demand. Across these jurisdictions, the company adopted what it described as a disciplined production strategy, calibrating volumes in response to slower sales and growing stockpiles.
Industry data indicate that inventories have expanded over the past year as rough diamond sales slowed, forcing producers to align supply more closely with demand. Midstream buyers, including cutters and polishers, have reportedly remained cautious, managing stock conservatively in light of price volatility and macroeconomic uncertainty.
External headwinds have compounded the strain. The global diamond trade has been affected by shifting consumer preferences, particularly among younger buyers who increasingly opt for lab-grown alternatives. Additionally, recent United States trade policy has added uncertainty to the supply chain. Tariffs imposed on India, the world’s largest diamond cutting and exporting hub, following the introduction of 50% levies in August, have disrupted trade flows and weighed on sentiment. Although there have been indications that a rollback could occur by April, producers remain wary of near-term volatility.
In response to deteriorating conditions, De Beers implemented cost control measures and reduced capital expenditure to $353 million, focusing on preserving cash and improving operational efficiency. Its parent company, Anglo American, recognised a $2.3 billion impairment linked to weaker long-term price expectations and evolving consumer trends in the diamond market. Anglo American itself reported a broader $3.7 billion loss, underscoring the scale of the downturn across its portfolio.
Chief Executive Duncan Wanblad expressed cautious optimism that the current cycle may represent a low point for the business. De Beers continues to pursue its “Origins” strategy, aimed at streamlining operations and stimulating demand for natural diamonds through targeted marketing campaigns and industry partnerships.
Looking ahead, near-term trading conditions are expected to remain challenging as macroeconomic volatility persists and inventory levels gradually normalise. For 2026, De Beers forecasts production between 21 million and 26 million carats, signalling a continued emphasis on aligning output closely with market demand.
Meanwhile, Anglo American is progressing with a structured separation process for De Beers as part of a broader portfolio reshaping strategy. The outcome of that process could redefine the ownership and strategic direction of one of Africa’s most significant mining assets.
Despite global headwinds, the diamond sector remains strategically vital for several African economies, particularly Botswana, where mining revenues underpin public finances and economic stability. The trajectory of global demand and pricing recovery will therefore be closely watched not only by industry players but also by policymakers across the continent.
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