De Beers, Africa’s largest diamond miner, posted a sharply wider $511 million loss in 2025 as weak Chinese demand, U.S. tariff pressures and softer global prices weighed on its worldwide operations, including key mines in Botswana, Namibia and South Africa.
- De Beers reported a significantly larger loss in 2025, with an underlying EBITDA loss of $511 million due to weak prices, softer Chinese demand, and competition from lab-grown diamonds.
- Total rough diamond production fell by 12% to 21.7 million carats as the company adjusted to lower demand and higher inventories.
- Core operations in Botswana, South Africa, and Namibia faced pressure from subdued demand and implemented cautious production strategies.
- Global diamond sector challenges were worsened by US tariffs on India and changing consumer preferences, prompting De Beers to cut costs and capital expenditure.
The group posted an underlying loss before interest, taxes, depreciation and amortisation (EBITDA) of $511 million for the year, compared with a $25 million loss in 2024.
Rough diamond production fell 12% to 21.7 million carats, as the company adjusted output to reflect prevailing market conditions.
Core African operations under pressure
De Beers’ African footprint remains anchored in Botswana, South Africa and Namibia.
In Botswana, operations are conducted through the Debswana joint venture, where Jwaneng, widely regarded as the world’s most valuable diamond mine by revenue, and Orapa remain core contributors to output.
Given Botswana’s reliance on diamond revenues for fiscal income and foreign exchange, sustained price weakness carries broader economic implications.
Amid softer global demand and elevated inventories, the company has adopted a disciplined production strategy.
Industry data show that stockpiles have expanded over the past year as rough sales slowed, prompting producers to calibrate output more closely to market conditions.
South Africa’s Venetia mine, now operating underground, continued production amid weaker market conditions, while Debmarine Namibia’s offshore operations similarly aligned output with subdued demand.
Price slump, tariffs and global headwinds
Total revenue held broadly steady at around $3.5 billion, but lower realised prices and inventory rebalancing weighed on earnings.
The downturn reflects broader pressures in the global diamond sector. Chinese luxury demand, a key driver of high-value sales, has weakened, while laboratory-grown diamonds continue to gain market share.
The strain has been compounded by U.S. trade policy. Tariffs imposed on India, the world’s largest diamond cutting and exporting hub, after President Donald Trump introduced 50% levies in August have added uncertainty to the supply chain.
Although Trump has said a rollback could be in place by April, producers remain cautious about near-term demand.
Cost control and restructuring
In response, De Beers reduced unit costs and cut capital expenditure to $353 million, prioritising cash preservation and operational efficiency.
Anglo American, the parent company, recognised a $2.3 billion impairment linked to weaker long-term price expectations and shifting consumer preferences.
Chief Executive Officer Duncan Wanblad said on a call with reporters that he hopes the current downturn represents a low point for the business.
The company continues to pursue its “Origins” strategy, aimed at streamlining operations and stimulating demand for natural diamonds through marketing campaigns and industry agreements.
Trading Conditions
Near-term trading conditions are expected to remain challenging as midstream buyers manage inventories conservatively and macroeconomic volatility persists.
However, De Beers expects gradual inventory normalisation to support medium-term stability.
For 2026, the group forecasts production of between 21 million and 26 million carats, aligning output closely with demand.
Meanwhile, Anglo American is progressing with a structured separation process for De Beers as part of a broader portfolio reshaping.
Despite global headwinds, Africa’s diamond sector remains strategically important, particularly for Botswana, where mining revenues play a central role in economic stability and public finances.
