Angola Cuts Small Diamond Supply as Market Fights Oversupply

Gems and Jewelry News: Angola has announced a major intervention in the global diamond market, unveiling plans to significantly reduce the supply of small rough diamonds from its two largest mining operations, Catoca and Luele. The move is designed to support weakening diamond prices, curb concerns over oversupply, and help restore confidence in the natural diamond sector at a time when producers across the world are grappling with challenging market conditions.

The decision was confirmed by Elton Escrivão, Commercial Director of Angola’s state-owned diamond company Endiama, during industry gatherings held alongside JCK Las Vegas and other major trade events. According to company officials, the reduction will focus specifically on smaller-sized rough diamonds and will remain in effect for an initial three-month period. Industry observers view the announcement as one of the most significant supply-management measures undertaken by a major diamond-producing nation in recent years. This Gems and Jewelry News report notes that Angola is increasingly positioning itself not only as a major producer but also as an influential force in shaping market stability.

Endiama Moves to Protect Diamond Values

Escrivão emphasized that the objective of the supply reduction is to “protect the value” of Angola’s diamond production while supporting the broader health of the global market. He further indicated that authorities are prepared to extend the restrictions beyond the initial three-month period if market conditions continue to warrant intervention.

The announcement comes at a critical time for the natural diamond industry. While overall demand for larger and higher-value stones has shown pockets of resilience, smaller diamonds have struggled amid weaker consumer demand and mounting competition from laboratory-grown alternatives. These pressures have resulted in declining prices across several polished diamond categories, particularly stones under one carat.

Although Endiama has not yet specified the exact size categories affected, company officials confirmed that future sales from Catoca and Luele will contain substantially lower volumes of small rough goods. Further operational details are expected to be released in the coming weeks.

Angola’s Rapid Rise Creates New Challenges

Angola has become one of the fastest-growing diamond-producing nations in the world. The country recorded rough diamond exports of approximately 17.7 million carats in 2025, representing a remarkable 70 percent increase compared with the previous year. National diamond production also climbed to 15.2 million carats.

However, this production growth has been accompanied by a significant decline in average rough diamond values. Industry analysts attribute much of the decline to an increasing share of smaller diamonds entering the market. Angola’s average rough price reportedly fell by nearly 29 percent to around $102 per carat, reflecting the changing production mix.

The rapid expansion has largely been driven by the development of the Luele mine, one of the most important diamond discoveries of recent decades. Since commercial operations began in 2023, Luele has transformed Angola into the world’s third-largest diamond-producing nation and substantially increased the country’s global influence.

Global Producers Seek Better Balance

Angola’s decision arrives as other major diamond-producing regions are reducing output or facing production constraints. Botswana and Russia have implemented measures aimed at limiting supply, while Canada is confronting the prospect of shrinking production due to mine closures and operational challenges.

The broader industry has increasingly recognized that uncontrolled production growth can undermine recovery efforts in both rough and polished diamond markets. Many producers are now prioritizing disciplined supply management over volume expansion.

Support for Angola’s strategy has also come from De Beers CEO Al Cook, who praised the move during events at JCK Las Vegas. Cook pointed to declining production prospects in Canada and responsible supply management efforts elsewhere as evidence that natural diamonds could become increasingly scarce in the years ahead.

He noted that a combination of mine closures, project delays, and production controls could remove substantial volumes from the market, potentially strengthening the rarity and long-term value proposition of natural diamonds.

A Strong Signal to the Industry

Angola’s supply reduction represents more than a temporary production adjustment. It signals a growing willingness among producing nations to actively manage supply in response to changing market realities. As natural diamond producers face competition from synthetic stones and softer consumer demand in certain segments, coordinated efforts to stabilize pricing may become increasingly important.

For traders, manufacturers, and retailers, Angola’s decision is being viewed as a proactive step toward restoring balance in a market that has struggled with excess inventory and declining prices. If successful, the initiative could encourage similar actions across the industry and contribute to a healthier environment for natural diamonds worldwide.

As the global diamond sector continues to navigate economic uncertainty and shifting consumer preferences, Angola’s move demonstrates that supply discipline is becoming a central pillar of long-term market strategy. By prioritizing value over volume, the country is sending a clear message that sustainable growth and market stability are now taking precedence over rapid expansion. Industry stakeholders will be watching closely to see whether the reduction delivers the desired impact and whether additional measures follow in the months ahead.

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