Iconic diamond group De Beers will halt production at its Venetia mine in South Africa for 2 years, amid major challenges for the diamond industry.<\/p>\n\n\n\n
The Venetia mine is the group’s largest diamond mining operation, which launched in 1992. It has been the largest diamond producer in the country since 1995, producing about 40% of all diamonds.<\/p>\n\n\n\n
De Beers was founded in 1888 in Kimberley, Northern Cape, by the controversial British businessman Cecil Rhodes. <\/p>\n\n\n\n
Rhodes merged his mining assets with competing operations to consolidate control over the diamond industry.<\/p>\n\n\n\n
De Beers is owned by Anglo American, which holds an 85% stake, and the Government of the Republic of Botswana, which owns the remaining 15%. <\/p>\n\n\n\n
The diamond industry is facing major headwinds, including weak consumer demand and the rise of lab-grown diamonds, which avoid the environmental issues associated with mining and are sourced from conflict-free areas.<\/p>\n\n\n\n
The group is thus undergoing a massive streamlining of its business by setting a number of planned portfolio and organisational changes to ensure an efficient cost base. <\/p>\n\n\n\n
It said this will ensure the group has an efficient cost base that strengthens near-term resilience while enhancing future competitiveness.<\/p>\n\n\n\n
Since 2024, the group has eliminated $100 million in annual overhead costs through streamlining activities. <\/p>\n\n\n\n
The group has also sold or closed a number of non-core assets and undertaken significant capital and cost reconfigurations to support asset expansion projects.<\/p>\n\n\n\n
As part of its recent efforts to improve resilience, the group now intends to pause production at the Venetia mine in Limpopo for 2 years to reduce costs. <\/p>\n\n\n\n
This will also allow De Beers to rephase capital expenditure on its underground project at the mine. <\/p>\n\n\n\n
“This will involve critical infrastructure investment to enhance the capacity and efficiency of the mine, with the intention to support future production growth as business and industry conditions improve.” <\/p>\n\n\n\n
The mine was an open-pit mine for 30 years. However, after exhausting the open-pit operations, De Beers announced a new 1,000-metre underground expansion to extract the remaining ore.<\/p>\n\n\n\n
De Beers is now engaging with stakeholders in accordance with the legal requirements. The group said it will support affected employees and invest in its Social and Labour Plan commitments.<\/p>\n\n\n\n
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