De Beers has proposed pausing production at its Venetia mine in Limpopo for two years as challenging rough diamond trading conditions continue to affect the global diamond industry.
The planned pause would impact South Africa’s largest diamond producer by value and reflects the pressure facing even major long-term mining investments amid weaker market conditions.
Venetia mine faces temporary production halt
De Beers said the proposed suspension would help reduce costs while allowing the company to rephase capital spending on the Venetia underground project.
The miner added that critical infrastructure investment would continue during the pause to improve the mine’s capacity and efficiency ahead of a potential recovery in production.
Venetia accounts for approximately 40% of South Africa’s diamond production and recovered 2.2 million carats in 2025.
Long-term investment meets a changing market
Venetia produced its first underground diamonds nearly three years ago after De Beers completed its US$2.3 billion underground expansion, which followed the closure of open-pit mining in December 2022.
The project was designed to:
- Produce around four million carats annually.
- Extend the mine’s lifespan until at least 2045.
The proposed pause highlights the challenge of balancing mining investments planned over decades with consumer markets that can shift much more rapidly.
Global diamond market remains under pressure
The proposal also comes as Anglo American, which owns 85% of De Beers, continues working to separate the diamond business through a sale process.
While De Beers said global demand for natural diamond jewellery returned to growth during 2025, with increased sales among independent jewellers in the United States, rough diamond trading conditions remain difficult.
The industry continues to face several challenges, including:
- Falling demand, particularly in China.
- Increased competition from laboratory-grown diamonds.
- Declining marriage rates in China, which De Beers CEO Al Cook has identified as affecting engagement ring purchases.
Wider pressure across South Africa’s diamond sector
Venetia is not the only diamond operation facing challenges this year.
Other developments include:
- Petra Diamonds placing its Finsch mine into business rescue in May.
- The owners of Ekapa Mining filing for liquidation following a fatal mudslide and the prolonged downturn in the global diamond market.
De Beers continues cost-cutting measures
Al Cook said the company was responding to “protracted challenging conditions as the diamond industry evolves”, although he noted that demand for higher-quality diamonds was showing signs of improvement.
De Beers said production at its other operations would continue as planned and its overall group production guidance remains unchanged.
The proposed Venetia pause follows the earlier suspension of the Tuzo Phase 3 expansion at the Gahcho Kué mine in Canada and forms part of broader efforts to reduce corporate costs.
The company said it is consulting with stakeholders, will support affected employees, and will continue meeting its community and Social and Labour Plan commitments.
Venetia employs around 3,500 people, although De Beers has not indicated how many jobs could be affected by the proposed production pause.
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