Diamond giant De Beers plans to halt production at its South African mine for two years, as the one-time monopoly continues to wrestle with one of the deepest crises to ever hit the industry.
The $80 billion industry is under severe strain. What started as a post-pandemic slump worsened amid a pullback in Chinese luxury spending and the rising popularity of synthetic stones.
Trade tensions and war in the Middle East have piled on even more pain.
De Beers has sought to lower production to try and support prices, but a glut of stones from Angola and weak demand has undermined those efforts.
The company said on Monday that it now intends to shutter its Venetia mine in South Africa for two years as part of ongoing cost-cutting plan.
The decision won’t impact its output goals as it would produce more stones elsewhere.
The move comes amid a period of uncertainly for the firm. Long-time owner Anglo American Plc is in advanced stages of selling the business after years of underwhelming performances that tried the patience of investors.
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