The world’s biggest diamond miner, De Beers, cost its parent company almost $3bn last year as the growth in lab-grown stones continues to take the shine off the industry.
Anglo American was forced to write down the value of the renowned gem producer for a second consecutive year as its chief executive admitted the diamond markets had proved “really, really difficult for the company”.
Duncan Wanblad, the chief executive of Anglo American, added that its plan to shrug off De Beers as part of a radical strategy to dismantle parts of the 108-year-old group – which coined the slogan “a diamond is forever” in 1947 – may be delayed.
He added that the FTSE 100 company did not expect “much traction or progress” on its plans to spin off De Beers in the first half of the year, which could be via a trade sale or a listing via an IPO or demerger, but it might “pick up” towards the end of the year.
Diamond prices have slumped over the past decade because of the rising popularity of cheaper, lab-grown versions and a slowdown in consumer spending in China.
In response, Anglo has taken impairments of $2.9bn on De Beers last year, after a $1.6bn writedown of the company in its annual results last year. This drove Anglo to a $3.1bn net loss in 2024, from a $283m profit the previous year.
The latest writedown of De Beers, which once controlled 90% of the world’s diamond market, means the company is now valued at $4bn.
Anglo laid bare the ongoing losses at De Beers after setting out a plan last year to sell the diamond business as part of a historic corporate overhaul to defend the company against a £34bn takeover plot by the Australian miner BHP.
Anglo hopes to guard the company against further unsolicited advances from BHP, which attempted to force the board to offload two Johannesburg-listed subsidiaries, the platinum miner Amplats and the iron ore miner Kumba, in order to complete a takeover.
Wanblad said the company had received unsolicited interest in the diamond business but a formal process had not started. At least part of the company is expected to be purchased by the government of Botswana, which hosts many of the company’s diamond mines.
Anglo American’s troubled ownership of the De Beers group was brought into fresh focus on Thursday as the mining company announced a fresh multibillion-dollar write-down of the diamond group it’s trying to restructure.
De Beers, which nearly 80 years ago introduced the masses to the immortal phrase “A diamond is forever,” has lost its shine in recent years amid declining demand for diamonds, partly a result of the growth of cheaper, allegedly more sustainable lab-grown alternatives, and also from declining demand in its crucial Chinese market.
Anglo announced a $2.9 billion write-down in the value of De Beers as part of its 2024 annual results on Thursday. It was the second valuation reduction in two years, after a $1.6 billion write-down in its 2023 earnings.
De Beers now has a book value of around $4 billion, meaning the company has more than halved from a 2023 valuation of $8.5 billion. The current valuation includes a $2 billion stockpile of diamonds it has struggled to shift amid the downturn in the industry.
“It’s been a bad year for rough diamond sales,” De Beers CEO Al Cook told the FT in December.
Lab-grown diamonds and Chinese issues Duncan Wanblad, Anglo’s CEO, described the 2024 trading conditions for rough diamonds as “extremely challenging,” citing high midstream inventory levels and depressed demand in China for a steep drop in sales in the second half of the year. Anglo expects to remove 10 million carats from planned production this year, after removing 6 million in 2024.
De Beers has faced an identity crisis amid a drop-off in demand for authentic diamonds. That has partly been driven by brewing demand for lab-grown diamonds.
The group entered the lab-grown business in 2018, aiming for sustainability-minded customers. However, that proposition aligned with their relative affordability has caused the product to cannibalize some of De Beers’ customers, and it exited that market in 2024.
Wanblad said the lab-grown headwinds were surmountable. John Heasely, Anglo American’s finance director, suggested the expected continued decline in prices for lab-grown diamonds would continue to bifurcate the two markets, reducing the chance of lab-grown diamonds cannibalizing the genuine market.
In China, which has reduced the cumulative demand for diamonds by 40% in the last two years, Heasley noted changing behavior among retailers was adding to its inventory headaches.
The finance director said retailers in the country had started selling their polished diamonds back into the midstream market to recoup some of their expenditure. This led midstream inventories to spike in the first half of 2024, keeping the company’s rough diamond inventory fixed.
Anglo restructures De Beers Anglo has sought to restructure De Beers into an independent operation, which could result in either a sale or an IPO of the diamond company.
However, this restructuring has been delayed owing to myriad industrial headwinds the company has faced.
Wanblad said of De Beers: “I’m really not expecting much traction or progress in the first half of this year.”
Wanblad says it has agreed a framework with the Botswana government, which is a 15% owner in De Beers, to help it potentially initiate a formal sale process after receiving several “unsolicited inbounds” for the diamond company.
Chinese scientists synthesized an artificial “super diamond” that is 40% harder and far more durable than natural diamonds. The findings of the research team were published in early February in the journal Nature Materials.
Led by Liu Bingbing and Yao Mingguang from Jilin University, the researchers discovered that by heating highly compressed graphite, it can transform into a hexagonal diamond. This synthetic creation possesses a hexagonal crystal form, which provides much greater strength compared to the cubic structure of most natural diamonds. The “super diamond” structure exhibits high thermal stability up to 1,100°C and a very high hardness of 155 Giga Pascals (GPa), according to the scientists.
“Our findings offer valuable insights regarding the graphite-to-diamond conversion under elevated pressure and temperature, providing opportunities for the fabrication and applications of this unique material,” the scientists wrote in the study.
Winston Red Diamond Will Be Unveiled to the Public at the National Museum of Natural History Alongside a Rainbow of Colorful Diamonds
The Smithsonian’s National Museum of Natural History will unveil the Winston Red Diamond and Winston Fancy Color Diamond Collection Tuesday, April 1—an extraordinary showcase of some of the world’s rarest and most dazzling gems.
The breathtaking diamonds were gifted to the museum by Ronald Winston, the son of distinguished jeweler and gem collector Harry Winston. In 1958, Harry Winston donated the iconic Hope Diamond to the Smithsonian, laying the foundation for the National Gem Collection. Now, the Winston Red Diamond and Winston Fancy Color Diamond Collection will be featured in the museum’s Winston Gallery, offering visitors the rare opportunity to witness one of the finest collections of fancy color diamonds ever amassed.
“This ranks among the most significant gifts ever received by the Smithsonian,” said Kirk Johnson, the Sant Director of the National Museum of Natural History. “The Winston diamonds are unprecedented in their beauty and rarity, and we are thrilled to welcome them as additions to our National Gem Collection. We extend our gratitude to Ronald Winston for making this gift to the nation possible.”
Natural red diamonds are among the rarest gemstones on Earth, and the Winston Red Diamond stands out as exceptional. At 2.33 carats, it ranks among the largest diamonds ever bestowed with the coveted “Fancy red” color grade by the Gemological Institute of America (GIA). Researchers estimate that less than one in 25 million diamonds is a Fancy red, and the Winston Red Diamond is one of the most exquisite in existence.
“The red diamond is the highlight of my career, and I have never seen anything else like it,” Ronald Winston said. “This donation to the museum represents my life’s achievements in this domain, and I am so happy to share this collection with the Institution and the museum’s visitors.”
While some colorful diamonds get their pigmented appearance from atomic impurities in their crystal structure, the Winston Red Diamond’s striking crimson hue is the product of extremely high pressure and temperature conditions deep within the Earth that strained and altered the crystal. The diamond features an old mine brilliant cut, a style that predates the round brilliant cut used in engagement rings today. With fewer, larger facets, this distinctive cut suggests the stone was fashioned before the mid-1900s. A study on the science and history of the Winston Red Diamond is forthcoming in the spring 2025 issue of Gems & Gemology, the quarterly professional journal of the GIA.
“In this collection, we have diamonds in colors I could never have dreamed of,” said mineralogist Gabriela Farfan, the Coralyn W. Whitney Curator of Gems and Minerals. “These gems give us the opportunity to share with our visitors the full range of colors in which diamonds occur.”
The Winston Red Diamond will be displayed alongside 40 other gems from the Winston Fancy Color Diamond Collection. The diamonds will be arranged in a radiant rainbow of color, featuring every shade imaginable from deep teal to soft peach.
The Winston Red Diamond and Fancy Color Diamond Collection are the result of 60 years of dedicated acquisitions by Ronald Winston. Alongside the Hope Diamond, the new display will honor the legacy of the Winston family and showcase the brilliance and rarity of these exceptional gems.
Independent mining group Petra Diamonds, which owns and operates diamond mines in South Africa, has appointed two interim CEOs Vivek Gadodia and Juan Kemp to succeed Richard Duffy, who has resigned by mutual agreement and with immediate effect.
Gadodia will oversee all corporate matters of the group, while Kemp will oversee all operational matters.
At this point, they will not be appointed as directors.
Vivek joined Petra in 2021 with his roles having included planning and corporate planning executive and chief restructuring officer. He previously worked for Sasol in various engineering, project management and corporate positions over a 15-year period.
Kemp, meanwhile, joined Petra in 2009 when the company bought its flagship Cullinan mine from fellow miner De Beers.
Kemp was GM of the mine since 2011 before having been appointed as a chief technical officer in 2019 and operations executive for the Cullinan mine in 2024.
His earlier career included positions at De Beers and AngloGold Ashanti.
The appointments of the interim CEOs come as Petra struggles with lower earnings generation and high debt.
The company’s results for the six months ended December 31, 2024, reflect Petra’s progress in implementing cost reduction plans and smoothed capital profiles, despite weakness in the diamond market.
Petra managed to reduce its mining and processing costs from continuing operations by 19% year-on-year to $98-million.
However, the group’s revenue was also lower by 30% year-on-year, or $49-million, at $115-million owing to additional revenue of $50-million having been carried over from tenders into the prior comparable period.
Adjusted earnings before interest, taxes, depreciation and amortisation amounted to $15-million, which was lower than the $38-million adjusted Ebitda reported in the first half of the prior financial year.
The company’s basic loss a share from continuing operations was $0.30, or $0.13 on an adjusted basis.
Operational free cash inflow of $16-million in the six months under review compares with a $21-million outflow in the first half of the prior year, which Petra says largely reflects the impact of its cost reduction measures, capital smoothing and working capital management.
The lower revenue and earnings over the financial year of 2024, caused Petra to not meet its required leverage and interest cover covenant ratios in its revolving credit facility measured at December 31, 2024.
Petra has since obtained a waiver from the lender, Absa Bank, related to these covenant breaches, and is restarting engagements with lenders regarding the refinancing of its debt.
The group’s consolidated net debt was $215-million as at December 31, compared with $193-million at the end of June, owing to diamond market weakness and the timing of Petra’s tender sales.
Three tender sales took place during the first half of the 2025 financial year (the six months ended December 31), while four have been scheduled for the remainder of the financial year.
Petra realised an average price of $103/ct in the reporting period, which reflects the positive impact of product mix over the period offsetting the overall weaker diamond pricing environment.
OPERATIONS
The group has achieved cost reductions through sustainably lowering overheads and on-mine cost optimisation with limited impact to its operations.
Petra completed the sale of its interest in the Koffiefontein mine to the Stargems Group in the six months under review, which allowed the group to avoid closure-related costs of $23-million.
Petra also entered into an agreement in January to sell its interest in the Williamson mine, in Tanzania, to Pink Diamonds Investments for a headline consideration of $16-million.
The group expects the sale of its interest in the Williamson mine to be completed by the end of the calendar year.
The Finsch mine has transitioned into new production areas called 78-Level Phase 2, with steady operations having been reported over the past few months.
In turn, production from the CC1E zone at the Cullinan mine has also started in the interim period, while Petra continues to advance more extension projects at both of these mines, as well as life-of-mine plan reviews.
Petra intends to re-engage its lenders with a revised business plan and updated cost-savings initiatives, as part of its overall restructuring plan.
The group is targeting net free cashflow generation for the remainder of the financial year, as well as more efforts to make the company resilient to pricing weakness.
Botswana’s central bank left its main lending rate unchanged on Thursday, saying the economy was expected to operate below capacity and not generate demand-driven inflationary pressures because of a slump in the global diamond market.
The Bank of Botswana held its Monetary Policy Rate at 1.90% for the second policy meeting in a row. The rate is based on a seven-day instrument.
“The economy will contract this year primarily due to the downturn in the global diamond market and moderately recover next year,” central bank Governor Cornelius Dekop told a news conference.
The southern African country’s economy is largely dependent on the export of diamonds, and declining earnings from the precious stone have limited government spending.
The central bank also lowered its primary reserve requirement to 0% from 2.5% due to significantly reduced liquidity in the banking system.
Dekop said inflation was expected to average 2.9% in 2024 and 3.3% in 2025, compared with forecasts of 2.8% and 3.1% given at the bank’s previous monetary policy meeting in November.
The Bank of Botswana prefers inflation between 3% and 6% over the medium term. Annual inflation stood at 1.6% in October.
The average price of a natural diamond engagement ring in the US last year was $6,750.
And the average size of the stone was 1.07 carats, according to a new report by the New York-based Natural Diamond Council.
It provides a detailed analysis of the shift to larger, higher quality diamonds in its downloadable 20-page Natural Diamond Trends: A 2024 Overview.
Round brilliants remain by far the most popular shapes in diamond jewelry, at 81.7 per cent, but that figure is slipping slightly.
Among fancy shapes for all diamond jewelry, princess and cushion showed the biggest increases, albeit from a very low base (2.1 per cent and 1.0 per cent market share respectively).
The most common color for an engagement diamond was H and the most common clarity was SI1, with bridal representing 33 per cent of all natural diamond sales in the US.
The average price of wedding sets increased 31 per cent in 2024, the report said.
“The increase was mainly due to a rise in the average size of diamonds and a notable change in the type of metal used.”
The average price of natural diamond jewelry sold across all product categories grew 2.7% to $2,360 in 2024.
The report, the latest in a series uncovering the trends, origins and impacts of natural diamonds, was jointly produced with Tenoris.
The diamond industry is undergoing a seismic shift, driven by the rising popularity of lab-grown diamonds. Once considered a niche alternative, these scientifically engineered gems are now mainstream, offering a more affordable and ethically sourced option compared to their natural counterparts. This surge in demand is putting pressure on the traditional diamond market, challenging industry norms and reshaping consumer preferences.
Lab-Grown Diamonds and Their Impact on the Industry
Lab-grown diamonds are chemically, physically, and optically identical to natural diamonds. They are created using advanced technological processes that replicate the conditions under which diamonds form in the Earth’s mantle. As a result, they offer the same brilliance, hardness, and durability as mined diamonds, but at a significantly lower price point.
With consumers becoming more conscious of sustainability and ethical sourcing, lab-grown diamonds are increasingly seen as a viable alternative to mined stones. This shift in preference is sending shock waves through the traditional precious gems market, compelling industry players to adapt to evolving trends.
Why You Need Expert Guidance When Buying Diamonds
While lab-grown diamonds present an attractive option, navigating the diamond market—whether natural or lab-created—requires expert guidance. With the influx of synthetic diamonds, ensuring that you are purchasing a high-quality stone from a reputable source is crucial. This is where independent diamond certification becomes essential.
DCLA: Sydney’s Most Trusted Diamond Laboratory
When it comes to protecting your investment and ensuring the authenticity of your diamond, the Diamond Certification Laboratory of Australia (DCLA) in Sydney is the best option. DCLA is one of the only internationally recognised and independent diamond grading laboratories in the world, adhering to strict grading standards to provide unbiased, accurate diamond certification.
Diamond miner Lucara Diamond Corp has sold the 549 ct Sethunya and the 1 080 ct Eva Star diamonds, recovered at its Karowe mine, in Botswana, for $54-million.
The Sethunya, recovered in 2021, and the Eva Star, discovered in 2023, showcase the remarkable quality and size of diamonds consistently produced from the South Lobe of the Karowe kimberlite. These exceptional stones underscore Karowe’s position as one of the world’s most prolific sources of large, high-value diamonds, Lucara states.
“The sale of these two extraordinary diamonds further validates our investment in the Karowe underground project. The unique characteristics of Karowe’s kimberlite, particularly in the South Lobe, continue to amaze us with its ability to produce diamonds of exceptional size and quality. The mineralogy we’re seeing is truly unprecedented in the industry, consistently delivering Type IIa diamonds of remarkable clarity and size,” adds president and CEO William Lamb.
The Karowe mine has yielded some of the world’s largest diamonds, including the 1 758 ct Sewelô, recovered in 2019; a 1 174 ct diamond recovered in 2021; and the 1 109 ct Lesedi La Rona, recovered in 2015.
The 1 080 ct Eva Star diamond was the fourth diamond weighing more than 1 000 ct to be recovered at the mine.
This was followed by the recovery of the 2 492 ct Motswedi diamond in August last year and the 1 094 ct Seriti diamond in September last year.
The 2 492 ct Motswedi is the second-largest diamond ever to be recovered, with the largest being the 3 106 ct Cullinan diamond recovered in South Africa in 1905.
The Karowe underground expansion project will extend the mine’s life beyond 2040 and has been designed to access the parts of the South lobe at depth where the EMPKS ore type is prevalent.
Production at the underground mine is scheduled to start in the first half of 2028.
Botswana’s government is forecasting a recovery in the diamond market later this year, and a consequent expansion of the country’s economy.
It shrank by 3.1 per cent in 2024, but according to vice president and finance minister Ndaba Gaolathe it is now expected to grow 3.3 per cent in 2025.
“This growth outlook is premised on recovery of the diamond industry, which is expected in the latter part of 2025, and continued positive sentiment in the non-diamond mining sectors,” he said yesterday (10 February) in his budget speech for 2025/26.
Diamonds account for around 80 per cent of Botswana’s export earnings and a third of total budget revenues.
De Beers and the Botswana government have finally reached agreement on the long-term mining and rough sales deals.
But their joint venture Debswana reported sales for the first three quarters of 2024 were down by 52 per cent.
In December, Gaolathe warned that Botswana’s economy could contract by 1.7 per cent during 2024 as a direct result of the diamond. Slump.
But he predicted better times ahead, with an expected rebound in the diamond market driving overall growth in 2025.
Video grab shows finance minister Ndaba Gaolathe delivering his 2025/26 budget.
