Diamond giant De Beers halts work at flagship South African mine as demand plummets
De Beers is suspending operations at its flagship Venetia mine in South Africa for two years due to falling diamond prices and competition from lab-grown alternatives. The company aims to use this time to improve infrastructure while facing broader industry shifts and potential divestment by parent company Anglo American.
Why it matters
This move highlights the significant economic disruption lab-grown diamonds are causing to the traditional mining industry and the potential for major job losses in South Africa.
Image source, Getty Images Image caption, Sales are falling as some buyers switch to lab-grown diamonds
Mining giant De Beers is suspending production at South Africa's biggest diamond mine for two years, as changing consumer habits continue to shrink profits.
Prices across the industry have fallen because fewer people are buying diamonds than in the past, especially in China, and there is stiff competition from much cheaper lab-grown gems.
Announcing its decision to close the Venetia mine, De Beers said it needed to cut costs and streamline operations given the depressed state of the world diamond market.
The Venetia mine, in the far north of South Africa, accounts for more than 40% of the country's diamond production and employs more than 4,000 people.
'By the grace of God': Miners dig on as lab-grown diamonds change market
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