Global diamond producer De Beers has launched an aggressive discounting campaign to offload roughly $2 billion (around R34 billion) worth of rough diamond inventory as it prepares for a historic split from parent company Anglo American. The company sold 5.7 million carats for $700 million (approximately R11 billion) this quarter, a sharp rise in volumes but at significantly reduced prices, in a bid to ease stockpiles accumulated during a prolonged slump in demand.
De Beers’ move comes at a time of major upheaval for its parent company. In May 2025, Anglo American announced plans to divest De Beers as part of a sweeping restructuring effort aimed at streamlining its portfolio and focusing on copper, iron ore and crop nutrients. The strategy followed months of pressure from shareholders and a rejected takeover bid from BHP, which accelerated calls for Anglo to shed non-core assets.
The planned exit marks the end of a century-long chapter between Anglo American and De Beers, whose partnership shaped the development of South Africa’s mining industry. Anglo’s retreat from diamonds, coal and platinum has raised concerns about the long-term future of mining investment in the country, where it remains one of the largest employers and taxpayers. Analysts warn that Anglo’s shrinking footprint could affect supplier networks, jobs and government revenue at a time when South Africa is already grappling with slow growth and weakening investor confidence.
For De Beers, clearing the $2 billion stockpile is intended to strengthen its balance sheet ahead of life after Anglo. The company is targeting a leaner, more market-responsive structure as it battles weak demand and growing competition from lab-grown diamonds, which now command roughly 20% of global market share. De Beers posted a $189 million loss in the first half of 2025 and has cut production to align with softer conditions.
The global slowdown, driven by inflation, cautious consumer spending and weaker growth in China and the US, has further pressured natural diamond prices. De Beers introduced steep discounts of 10–15% in late 2024 and is continuing to prioritise turnover over price recovery.
With a separation expected by 2026, the company could emerge as an independent entity or attract new shareholders, including potential interest from African governments. As De Beers navigates this transition, its actions will influence not only the global diamond trade but also South Africa’s mining landscape at a pivotal moment.
