Africa’s largest diamond miner suffers worst annual result in years amid perfect storm of weak demand and lab-grown competition
De Beers, the diamond mining giant with operations across southern Africa, has reported a staggering $511 million loss for 2025 as the industry grapples with collapsing Chinese demand, US trade tariffs and the relentless rise of laboratory-grown stones.
The Anglo American-owned group’s underlying loss before interest, taxes, depreciation and amortisation widened dramatically from just $25 million the previous year, marking one of the toughest periods in the company’s history.
Production was slashed by 12% to 21.7 million carats as the miner scrambled to align output with tumbling demand, while total revenue remained largely flat at approximately $3.5 billion – squeezed by falling prices and swelling inventories across the sector.
Core African operations feel the squeeze
The pain has been felt most acutely across De Beers’ flagship African operations. In Botswana, where the Debswana joint venture operates the legendary Jwaneng mine – widely considered the world’s most valuable diamond mine by revenue – production has been carefully calibrated to avoid flooding an already weak market.
The slowdown carries serious implications for Botswana’s economy, which relies heavily on diamond revenues to fund public services and maintain foreign currency reserves.
South Africa’s Venetia mine, now in its costly transition to underground operations, continued production against a backdrop of depressed prices, while Debmarine Namibia’s offshore fleet similarly scaled back output in response to market conditions.
China luxury slump and tariff turmoil
The industry’s troubles extend far beyond Africa’s borders. Chinese luxury spending, once a reliable engine for high-value diamond sales, has faltered dramatically, while lab-grown diamonds continue to eat into market share with their lower price points and ethical appeal.
Compounding these structural challenges, US trade policy has delivered another blow. President Donald Trump’s imposition of 50% tariffs on Indian diamond cutting and exporting hubs last August sent shockwaves through the supply chain. While the administration has signalled a possible rollback by April, producers remain deeply cautious about near-term recovery.
Cost-cutting mode activated
In response to mounting pressures, De Beers has slashed capital expenditure to $353 million and driven down unit costs across its operations. Parent company Anglo American has already taken a $2.3 billion impairment charge against the business, reflecting diminished long-term price expectations and shifting consumer behaviour.
Chief Executive Duncan Wanblad struck a cautiously optimistic tone, telling reporters he hopes the current downturn represents a low point for the business.
The company continues to push its “Origins” strategy, focusing on operational streamlining and renewed marketing efforts to differentiate natural diamonds from their laboratory-grown rivals.
Outlook remains murky
Near-term trading conditions are expected to stay challenging as midstream buyers hoard inventories and macroeconomic uncertainty persists. However, De Beers anticipates gradual inventory normalisation could support medium-term stability.
Production guidance for 2026 stands at between 21 million and 26 million carats, signalling that the group expects to keep output tightly tethered to demand.
Meanwhile, Anglo American presses ahead with plans to separate De Beers as part of a wider portfolio restructuring, though the current market climate hardly seems conducive to achieving optimal value.
For Botswana, Namibia and South Africa, the downturn serves as a stark reminder of their continued dependence on diamond revenues – and the risks that dependence carries when global headwinds gather force.
