De Beers has announced that it will suspend production at its flagship Venetia mine in Limpopo for two years as part of a broader restructuring plan aimed at reducing costs and improving the company's resilience in the face of ongoing challenges in the global diamond industry.
The Venetia mine, which began operations in 1992, is De Beers' largest diamond mining operation and has been South Africa's leading diamond producer since 1995, accounting for around 40% of the country's diamond output.
The mining giant, founded in Kimberley in 1888 by British businessman Cecil Rhodes, is majority-owned by Anglo American, which holds an 85% stake, while the Government of Botswana owns the remaining 15%.
The decision comes as the diamond industry grapples with weak consumer demand and growing competition from lab-grown diamonds, which are marketed as environmentally friendly and conflict-free alternatives to mined stones.
De Beers said the production pause forms part of a wider business transformation strategy designed to streamline operations, reduce costs and position the company for long-term growth.
According to the company, it has already eliminated around $100 million in annual overhead costs since 2024 through restructuring initiatives, while also selling or closing several non-core assets and reconfiguring capital spending to support key expansion projects.
The two-year suspension at Venetia will also allow the company to reschedule capital expenditure on the mine's underground expansion project.
De Beers said the pause would enable it to complete critical infrastructure upgrades aimed at improving the mine's long-term efficiency and production capacity once market conditions improve.
Venetia operated as an open-pit mine for three decades before transitioning to a major underground expansion after the open pit reached the end of its productive life. The underground project extends approximately 1,000 metres below the surface and is intended to access the remaining diamond-bearing ore.
The company said it is consulting with stakeholders in line with legal requirements and has committed to supporting affected employees while continuing to meet its Social and Labour Plan obligations.
The announcement follows De Beers' earlier decision to pause the Tuzo Phase 3 expansion project at the Gahcho Kué mine in Canada as part of its global cost-saving measures.
In addition to suspending production at Venetia, the company plans to simplify its global operating model by focusing resources on its core mining operations and reducing central corporate costs.
De Beers Group Chief Executive Officer Al Cook acknowledged the difficult conditions facing the diamond sector but said there are encouraging signs of recovery.
"We recognise the protracted challenging conditions as the diamond industry evolves," Cook said.
"We are encouraged by signs of consumer demand growth in the United States and beyond, particularly in higher-quality diamonds."
Cook added that declining global supplies of rough diamonds, together with improving consumer demand, are expected to strengthen the market over the longer term.
However, he cautioned that rough diamond trading conditions are likely to remain difficult in the near future as the industry continues to navigate both cyclical and structural challenges.