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De Beers suspends production at South Africa’s Venetia diamond mine for two years
De Beers said the Venetia mine, its largest in South Africa, produces more than 40% of the country’s diamonds and employs over 4,000 people.
De Beers has suspended production at its Venetia diamond mine in South Africa for two years, citing depressed conditions in the global diamond market and the need to cut costs and streamline operations, according to BBC Business. The company said changing consumer habits are shrinking profits across the industry, particularly with weaker demand in China.
The news comes amid price declines for rough diamonds, with competition from lower-priced lab-grown gems. De Beers said it is scaling down to adapt to the “depressed” market environment, and it plans to use the downtime to make mine infrastructure more efficient and increase capacity ahead of a potential restart.
Venetia is described as De Beers’ flagship operation in South Africa, accounting for more than 40% of the country’s diamond production and employing more than 4,000 people. The decision also raises concerns in the region, with unions previously warning against job losses in South Africa’s mining sector.
BBC Business also noted that rough diamond prices have fallen sharply since 2022, as lab-grown diamonds have gained popularity amid ethical and environmental concerns. De Beers, which is majority-owned by Anglo American, has further faced pressure as industry leaders debate how to respond to shifting demand, including the lure of other commodity markets such as copper.
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