De Beers to pause work at SA's largest diamond mine
De Beers is pausing production at its Venetia diamond mine in South Africa for two years to reduce costs amid a challenging market. The company is struggling with competition from laboratory-grown diamonds and broader economic pressures.
Why it matters
The move highlights the significant disruption laboratory-grown gems are causing to the traditional natural diamond industry and the economic impact on mining-dependent regions.
JOHANNESBURG - De Beers announced Monday it will pause production at South Africa's largest diamond mine for two years to reduce costs while trading conditions remained tough.
De Beers is majority-owned by British mining giant Anglo American, which is seeking to offload its stake as the natural diamond market faces intense pressure from laboratory-grown gems.
It said "rough diamond trading conditions are expected to remain challenging in the near-term," with production decreasing and several producers closing mines.
"Consistent with recent actions to improve business resilience, De Beers intends to pause production at the Venetia mine in South Africa for two years to reduce costs while also rephasing capital expenditure on its underground project," it said in a statement.
Venetia, which lies near the borders with Botswana and Zimbabwe, has been run by the De Beers group for more than 30 years.
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