De Beers Closes Diamond Mine in South Africa
Just a few years ago, De Beers was generating operating profits of well over one billion U.S. dollars. In 2025, however, the diamond company posted an operating loss of 787 million U.S. dollars and is struggling with structural changes in the market.
The significant operating loss is primarily attributable to the ongoing decline in natural diamond prices, weak demand in China, competition from lab-grown diamonds, and the impact of new U.S. tariffs.
In response to weak demand, the diamond company has significantly reduced production, cut back on investments, reduced inventory, saved more than $100 million in costs, and postponed certain mining projects.
Among other measures, production at the Venetia Mine in South Africa will be suspended for two years. The mine accounts for about 10 percent of De Beers’ global production and approximately 40 percent of South Africa’s diamond output. De Beers cites cost reductions and a restructuring of the underground project as the reasons for the closure, which follows the temporary halt of the expansion project at the Gahcho-Kué mine in Canada.
Marketing Campaign for Natural Diamonds
At the same time, De Beers has once again invested in marketing for natural diamonds to support the industry’s efforts to boost demand. To that end, several large-scale campaigns have been launched.
These measures appear to be having an effect. De Beers reports that global consumer demand for jewelry featuring natural diamonds rose again in 2025. The main drivers were high-quality diamonds and designs promoted as part of De Beers’ “Desert Diamonds” marketing campaign.
Al Cook, CEO of the De Beers Group, stated: “In line with our commitment to focus and optimize our business, we at De Beers are implementing a series of changes to strengthen the company’s short-term resilience while promoting long-term value creation. We are aware of the ongoing challenges in the evolving diamond market, but we see encouraging signs of rising consumer demand in the U.S. and beyond, particularly for high-quality diamonds. The global supply of rough diamonds is declining, which is providing additional support to the market. The changes we are implementing within our company are aimed at ensuring our efficiency today and in the future and optimally positioning De Beers to maintain its leadership role.”
