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De Beers has announced a proposed plan to close Venetia — for at least two years — to cut costs amid a falling demand for the precious gems.
Venetia, South Africa’s largest diamond mine, will be the latest mine to close after the 158-year-old Ekapa Mine filed for liquidation following a mudslide accident in February, while Petra Diamonds placed its Finsch Mine in the Northern Cape under business rescue in June.
In a statement on its website on Monday, De Beers said it plans to pause production at Venetia for two years to reduce costs while also rephasing capital expenditure on its underground project.
“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,” it said.
The group said it is talking with stakeholders in line with legal requirements and the company’s values as it moves through this process. It said it will support affected employees and continue to invest in its community and social and labour plan commitments.
At the crux of the decision is the supply side. Global rough diamond production is now decreasing, with several producers closing mines during 2026, said De Beers.
“While the increasing rarity of diamonds and the emerging signs of improvement in consumer demand are likely to support longer-term value creation, rough diamond trading conditions are expected to remain challenging in the near-term due to cyclical and industry-specific factors,” it said.
The proposed Venetia halt follows an earlier proposal to pause the Tuzo Phase 3 expansion project at the Gahcho Kué mine in Canada.
De Beers said it also plans to reconfigure its global operating model to refocus and prioritise resources on the core operational businesses and reduce its central corporate cost base.
Commenting on the halt, De Beers CEO Al Cook said the diamond producer was taking several steps to support 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. 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 said the group will maintain current production levels at its other operations, with previous production guidance unchanged.
The rough diamond industry is facing a deep crisis of lower demand from the Chinese and US markets while GenZs redefine demand for synthetic diamonds over rough diamonds.
TimesLIVE
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