Key points
- These transactions were made at a loss, with diamonds acquired in a stronger market now being sold at lower prices, leading to what Anglo American confirmed would be a negative EBITDA for De Beers in the first half of 2025.
- De Beers, one of the most renowned names in the global diamond industry, is facing a turbulent 2025 as its rough diamond production dropped a staggering 36 percent in the second quarter alone.
- With De Beers under financial and operational pressure and ownership uncertainty growing, the second half of 2025 is expected to be pivotal for the global diamond trade.
Gems and Jewellery News: Production Sees Steep Decline Across Key Mining Locations
De Beers, one of the most renowned names in the global diamond industry, is facing a turbulent 2025 as its rough diamond production dropped a staggering 36 percent in the second quarter alone. From 6.44 million carats during the same period last year, output dipped to just 4.13 million carats — marking a significant slowdown. First-half production for 2025 totaled 10.21 million carats, down from 13.31 million carats a year ago. This Gems and Jewellery News report highlights that production reductions were seen across all major De Beers operations including Botswana, Namibia, South Africa, and Canada.
De Beers rough diamond production is falling steeply
Image Credit: De Beers
The production cut is a strategic response to declining market demand and what De Beers’ parent company, Anglo American, describes as “challenging” trading conditions. Although polished diamond prices showed signs of stabilization by the end of Q1, the introduction of US tariffs in April cast fresh uncertainty, effectively freezing polished trading activity.
Stock Rebalancing Strategy and Financial Fallout
To address the weak demand, De Beers undertook what it called “stock rebalancing initiatives,” selling certain assortments of rough diamonds at reduced margins. This helped boost consolidated Q2 sales to 7.6 million carats and raised revenues to US$1.19 billion — a 14 percent year-on-year increase. However, these transactions were made at a loss, with diamonds acquired in a stronger market now being sold at lower prices, leading to what Anglo American confirmed would be a negative EBITDA for De Beers in the first half of 2025.
Despite the sales increase, the average consolidated price per carat dropped 5 percent to US$155 due to the lower value of many rebalanced stocks. Still, strong demand for premium stones helped prop up the Q2 average price to US$174 per carat, reflecting a 23 percent jump compared to last year.
Uncertainty Lingers Over De Beers Ownership
The financial turbulence surrounding De Beers also coincides with an ongoing ownership shake-up. Anglo American is reportedly advancing plans to divest De Beers. Meanwhile, the government of Botswana — already a significant stakeholder — has expressed interest in increasing its share to gain fuller control of what it calls a “strategic national asset.” Botswana’s Minister of Minerals and Energy, Bogolo Kenewendo, emphasized the country’s intent to oversee the entire diamond value chain, including marketing and distribution.
Sales and Outlook Amid Volatile Conditions
Sales volume for the first half of 2025 fell 8 percent to 11 million carats on a consolidated basis, while total sales dropped to 12.3 million carats. The price index for De Beers’ rough stones dipped 14 percent year-on-year, despite a partial Q2 recovery in demand for high-value gems.
De Beers is maintaining its 2025 production guidance between 20 and 23 million carats, though Anglo American cautioned that operations will be reassessed as the year progresses. Industry insiders speculate that further cutbacks may be imminent should demand fail to rebound in the second half.
The recent turbulence underscores the fragile state of the diamond sector, with consumer appetite for diamond jewelry remaining flat despite fluctuating wholesale dynamics. The contrasting picture between steady retail demand and sluggish trade performance paints a complex landscape for stakeholders navigating the evolving gem market.
With De Beers under financial and operational pressure and ownership uncertainty growing, the second half of 2025 is expected to be pivotal for the global diamond trade.
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