De Beers is deepening its response to the prolonged slump in the diamond market. The company plans to suspend production at its Venetia mine in South Africa for two years, cutting costs while rephasing capital expenditure on the mine’s underground expansion.
The pause will be accompanied by investment in infrastructure aimed at improving the mine’s capacity and efficiency. De Beers says the work is intended to position Venetia for future growth when market conditions improve.
The company said it is consulting stakeholders in line with regulatory requirements and its corporate commitments. It also pledged support for affected employees and said it would continue investing in community programmes and Social and Labour Plan obligations. The decision follows an earlier move to halt the Tuzo Phase 3 expansion project at the Gahcho Kué mine in Canada, underlining the pressure facing diamond producers.
Alongside operational changes, De Beers plans to reshape its global operating model, directing resources towards core businesses while reducing corporate overheads.
Al Cook, chief executive of De Beers Group, said the changes form part of a broader effort to streamline the company and strengthen resilience while preserving long-term value.
“We recognise the protracted challenging conditions as the diamond industry evolves, though we are encouraged by signs of consumer demand growth in the US and beyond, particularly in higher quality diamonds,” Cook said.
He added that global rough-diamond supply is declining, providing support to the market, and that the company’s changes are intended to improve efficiency and reinforce its position in the industry. Despite the suspension at Venetia, De Beers said production guidance remains unchanged and output from its other operations will continue at current levels.
The company says consumer demand for natural-diamond jewellery returned to growth in 2025. Sales among independent jewellers in the United States continued to rise into the first quarter of 2026, led by higher-value stones and products promoted through the Desert Diamonds campaign.
The company has also suffered a setback in Anglo American’s effort to sell the business. Bruce Cleaver, the former De Beers chief executive who was leading one of the bidding groups, has withdrawn from the process, citing weak market conditions. Cleaver told international media that neither he nor his financial backers could justify the economics of an acquisition in the current environment.
“I think that with the state of the business and the state of the diamond market it felt like it was difficult to see an appropriate return on investment over the short term,” he said.
“I do believe in the diamond industry, and I do believe in the long-term future of De Beers, but it felt for me and my funders at the time that this was not an appropriate time to continue.”
Since 2024, De Beers has been pursuing its Origins strategy, which focuses on cutting costs, selling non-core assets and concentrating investment on higher-value activities.
The company says it has already removed more than $100m in annual overhead costs, sold or closed several non-core assets and reconfigured capital spending on expansion projects.
At the same time, De Beers has increased spending on natural-diamond marketing, launching large campaigns and working with industry partners to stimulate demand.
The company says consumer demand for natural-diamond jewellery returned to growth in 2025. Sales among independent jewellers in the United States continued to rise into the first quarter of 2026, led by higher-value stones and products promoted through the Desert Diamonds campaign.
Supply conditions are also tightening. Global rough-diamond production is falling, with several producers closing mines during 2026.
Even so, De Beers expects trading conditions in rough diamonds to remain difficult in the near term, despite signs of improving demand and the increasing scarcity of natural diamonds.
