In a move that is set to further reduce an inventory estimated to have reached $2 billion this year, De Beers sold more diamonds at discount in the third quarter as it unleashed the stockpiled gems into the market.
The reduction in the stockpile comes as Anglo American goes ahead with the sale of De Beers in which the miner has a controlling 85% stake. Reducing the stockpile helps simplify the sale of De Beers which Anglo values at $5 billion against the sell-side consensus of $2.5 billion.
According to the third quarter 2025 production update from Anglo American rough diamond sales from two sights totalled 5.7 million carats. As a result, revenue of $700 million was generated on a consolidated basis. In comparison, a single sight of some 2.1 million carats in the third quarter last year generated $213m in sales.“This reflected continued stock rebalancing initiatives with specific assortments being sold at lower margins,” commented Anglo American.
The sale of De Beers is also complicated given the involvement of southern African governments which partner it. Botswana, a 15 percent shareholder in De Beers, has the right to match offers, and has expressed an interest in buying control of the diamond producer. Angola has also submitted an offer for De Beers majority stake.
The backdrop to the sale is the depressed diamond market. De Beers reported a 3 percent decline in its average selling price to $155 per carat for the third quarter which compares to a 14 percent decline in the rough diamond price index. Industry sentiment was undermined by US tariffs on diamond imports from India, the world’s largest cutting centre for natural diamonds. The US subsequently exempted natural diamonds from tariffs for countries with trade agreements which includes the European Union. Therefore the industry awaits the outcome of potential agreements with other countries.
Meanwhile, consumer demand for natural diamond jewellery remained stable in the US which is the world’s largest consumer of diamond jewellery and broadly stable globally.
Commenting on the sale of De Beers, Anglo American CEO Duncan Wanblad said the company was making good progress. “A dual track separation and a structured sale process is currently underway”, he said.
Diamond production increased 38 percent to 7.7 million carats in the quarter, an improvement driven by Jwaneng mine in Botswana ahead of plant maintenance during the fourth quarter. Anglo’s sale of De Beers is part of a broader strategy to focus on copper and iron ore. In September Anglo sold its remaining stake in Valterra Platinum, earning $2.5 billion. The group is also about to restart an auction for its metallurgical coal assets in Australia in the coming months.
