DiamondBuzz

De Beers Q1 Output Drops 11% as Diamond Demand Slumps

Rough Sales Plunge 44% to $520 Million; Canada and South Africa See Sharpest Production Cuts

Published

2 years ago

April 24, 2025

De Beers reported an 11% decline in rough diamond production for Q1 2025, totaling 6.1 million carats, amid ongoing weak global demand. The sharpest drops came from Canada (down 40%) and South Africa (down 19%), while Botswana production fell 8% to 4.6 million carats due to planned reductions.

Rough diamond sales also took a major hit, falling 44% year-on-year to $520 million, with 4.7 million carats sold. The average realized price dropped 38% to $124 per carat, driven by a softer sales mix and a 15% decline in the De Beers price index.

Despite the downturn, De Beers reaffirmed its 2025 production guidance of 20–23 million carats, citing flexibility to adjust based on market shifts. The company is also navigating a dual-track strategy to divest or demerge from Anglo American, which is restructuring its portfolio. A new long-term sales agreement with the Government of Botswana was signed during the quarter, indicating a continued strategic partnership.

Related Topics:2025 De Beers diamondbuzz internationalnews ourbuzz

Up Next

Fancy-Color Diamond Prices Dip Slightly Amid Global Trade Tensions

Don't Miss

Attempts to sanction Russian diamonds are “ineffective: Alrosa official

Click to comment

Name*

Email*

Website

Name*

Email*

Website

0 Comments

Oldest

Newest Most Voted

DiamondBuzz

South African Task Team To Help Struggling Diamond Producers

The South African Government Has Partnered With Mining Industry Leaders To Form A Joint Task Team Aimed At Saving Jobs and Supporting Diamond Producers Facing Severe Market Pressures.

Published

15 hours ago

October 30, 2026

JewelBuzz Spread The Buzz

The quick intervention follows major disruptions in the local sector, including Petra Diamonds placing its Finsch mine under business rescue and De Beers announcing a two-year production pause at Venetia, the country’s largest diamond mine.

In a parliamentary reply on October 26, Minister of Mineral and Petroleum Resources Gwede Mantashe confirmed that the team—which includes the Minerals Council South Africa and local diamond producers—will develop strategies to help mines survive current economic headwinds.

The immediate focus is finding practical solutions to protect operations across the entire sector, especially junior and small-scale miners who are being hit the hardest,

Key Industry Challenges

The local diamond sector faces a combination of falling global prices, rising operating costs, and intense competition from lab-grown synthetic diamonds. Official figures highlight the severity of the crisis:

Production Downturn: South African diamond output dropped 19.5% year-to-date through August.

Commodity Slump: According to Statistics South Africa, diamond mining was the weakest-performing mining sub-sector in August, with output falling 23.0% in the three months ending August compared to the previous three months.

Significant Mine Reductions: De Beers reported a 37% year-on-year drop in South African production for Q3 2026 (down to 418,000 carats) as operations wrap up ahead of Venetia’s pause. De Beers expects zero further production in South Africa for the remainder of 2026.

Price Pressures: Lower market values and a strong South African rand reduced average tender prices at the Finsch mine from $56 to $47 per carat, making ongoing operations unviable under current conditions.

The task team will focus on measures to ease cost pressures and address global market shifts. Further details regarding the team’s specific work plan, timelines, and financial resources will be announced as proposals are finalized.