De Beers has announced it will halt production for two years at Venetia, South Africa’s largest diamond mine, as part of a broader cost-cutting push amid a prolonged downturn in the natural diamond market.
The company, majority-owned by Anglo American, which is itself looking to sell its stake in De Beers, said rough diamond trading conditions are expected to stay difficult in the near term, with output falling industry-wide and several mines already shutting down.
De Beers said the pause at Venetia, which it has operated for more than three decades near the borders of Botswana and Zimbabwe, is part of a wider effort to strengthen the business while also slowing capital spending on an underground expansion project at the site.
Venetia accounts for more than 40 percent of South Africa’s annual diamond output and is the country’s most valuable producer, employing about 4,400 workers. De Beers began digging beneath the mine in 2012 to reach deposits more than 1,000 metres underground, with the site previously producing around four million carats a year.
The move follows a similar decision earlier this year to pause an expansion project at the Gahcho Kué mine in Canada. De Beers chief executive Al Cook said the changes are aimed at building greater resilience for the business while still supporting long-term value, noting that despite the tough conditions, the company is encouraged by growing consumer demand for higher-quality diamonds in the US and elsewhere.
Source: africanews.com