*De Beers shuts down SA’s biggest diamond mine
De Beers is preparing to close South Africa’s largest diamond mine for two years, threatening thousands of jobs and removing roughly two-fifths of the country’s diamond production as the industry’s most famous company battles one of the worst downturns in its history.
The move is intended to cut costs, while production will be increased elsewhere, enough to leave its overall output guidance unchanged.
While Venetia is not an ageing mine, the decision is very shocking considering that De Beers has already spent about $2.2billion converting the former open-pit mine into an underground operation intended to continue producing until around 2040.
In fact, output at Venetia, increased by 53% to 740,000 carats in the first quarter of 2026 as greater volumes of underground ore were processed.
De Beers’ average production cost in South Africa – where Venetia is its only operating mine – was $110 a carat in 2025, compared to $38 in Botswana, $51 in Canada and $244 in Namibia, according to figures shared by De Beers. Though Venetia is a relatively high-cost operation, it’s not the group’s most expensive source of diamonds.
De Beers Chief Executive Officer Al Cook says the company is making a some changes to ensure greater business resilience in the near-term, while supporting long-term value creation. “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,” he said. “Global rough diamond supply is falling, bringing more support to the market. The changes we are making to our business are focused on underpinning our efficiency now and into the future, favourably positioning De Beers in its leadership role.”
De Beers had already curtailed production in Botswana. Botswana government owns 15% of De Beers itself as well as half of Debswana, and diamond revenues remain central to the country’s finances. Namibia is similarly invested in maintaining production through its joint ventures. South Africa, by contrast, is likely to carry a disproportionate share of the group’s next supply reduction.
Venetia produced 2.2-million carats in 2025, representing about 10% of current De Beers’ production and about 40% of South Africa’s annual diamond output. South Africa produced about 5.8-million carats in 2024. However, the longer-term significance of the decision will depend on what happens to rough diamond prices and to De Beers itself during the next two years.
The global natural diamond industry has been under pressure since the end of the post-pandemic luxury boom. Weak Chinese consumer demand, excess inventories, economic uncertainty and the rapid expansion of much cheaper lab-grown diamonds have pushed rough prices down sharply. In the first quarter of 2026, De Beers’ average realised price fell 19 percent to $101 a carat, while its rough diamond price index declined by 17%. The group nevertheless maintained annual production guidance of between 21-million and 26-million carats. De Beers insists there are early signs of recovery, particularly in the US market and among higher-value natural diamonds.
