At its Venetia mine in South Africa's Limpopo province, De Beers plans a two-year pause in mining, while work to support a restart is expected to continue. The world's leading diamond producer by value announced the move as the sector faces mounting pressure from falling prices and the rapid expansion of lab-grown alternatives, putting thousands of jobs at risk. This is a production pause, not a permanent closure.
Venetia is a basic part of South Africa's diamond industry, accounting for nearly 40% of the country's diamond output and just over 10% of De Beers' global production. In 2025, the mine produced 2.23 million carats and directly employed around 3,500 people, with the total workforce rising further when contractors are included. Its output fell to 418,000 carats in the third quarter of 2026, down 37% from 659,000 carats in the same quarter a year earlier. De Beers' production summary put South African output at approximately 400,000 carats for the quarter.
Industry Pressures
De Beers attributes the suspension to persistent difficulties in the rough-diamond market. Since 2024, the company has cut more than $100 million in annual overheads and paused expansion plans at its Gahcho Kué mine in Canada. Demand in the United States and India showed signs of stabilising during the third quarter, but lower-priced natural stones remained under pressure from lab-grown alternatives. De Beers expects challenging trading conditions to persist in the near term.
The broader production picture reflects both the Venetia slowdown and planned plant maintenance at Orapa in Botswana. De Beers reported consolidated rough-diamond production of 6.8 million carats in the third quarter of 2026, an 11% year-on-year decline. For the first nine months of the year, its average realised price fell 37% to $97 per carat, while its rough-diamond price index declined 18%. The company also revised its expected unit costs to about $70 per carat, down from an earlier estimate of roughly $80. It cited cost controls and a larger contribution from Gahcho Kué, alongside the Venetia pause.
De Beers said that after the remaining ore is processed, “no further carat production is expected this year” at Venetia. Some spending on the mine's underground project will be delayed, but impressive infrastructure work is set to continue to support a future restart. The company raised its 2026 rough-diamond production guidance to 25 million-28 million carats, from a previous range of 21 million-26 million. Increased production elsewhere, including at Gahcho Kué, is expected to help offset the disruption. Venetia's output from ore already extracted also means the suspension does not immediately translate into an equivalent reduction in the group's full-year forecast.
Jobs and Local Impact
The National Union of Mineworkers warns that 1,214 permanent jobs are at risk: 1,134 at Venetia and 80 at the Johannesburg sorting center. De Beers has not specified how many positions may be lost, as labor consultations are ongoing. The company previously invested $2.2 billion to convert Venetia from an open-pit to an underground mine, aiming to extend its life until 2046. The two-year production pause leaves the mine's workforce and surrounding communities facing uncertainty as the operation shifts from extraction toward preparation and maintenance.
Lab-Grown Diamonds Disrupt the Market
The diamond industry is being reshaped by the surge in lab-grown stones, which have the same chemical and physical properties as natural diamonds but are produced in controlled industrial settings. Boston Consulting Group reports that global supply of lab-grown diamonds increased more than tenfold between 2018 and 2024, while wholesale prices dropped by over 90% through 2023. Prices vary with size. Cut and colour also matter: lab-grown stones can sell for as much as 90% less than natural diamonds, intensifying competition, particularly in lower-value segments. De Beers said synthetic lab-grown diamonds continued to affect demand for lower-value natural stones.
The WWW International Diamond Consultants' rough-diamond price index has fallen nearly 50% since its 2022 peak, pressured by weak demand from China and high inventories, while an influx of synthetic gems adds to the strain. De Beers entered the lab-grown jewelry market with its Lightbox brand in 2018, but announced its closure in May 2025 to refocus on natural diamonds. The group continues to manufacture synthetic materials for industrial use through its Element Six division. The decline in the company's realised price, steeper than the fall in its price index, also reflects a less favourable sales mix.
Ownership Changes and Industry Outlook
De Beers is currently majority-owned by Anglo American, which holds an 85% stake, with Botswana retaining the remaining 15%. Anglo American is in the advanced stages of selling its diamond business, having written down the value of De Beers by $2.3 billion in early 2026. The company believes that a reduction in global supply and stronger sales of high-quality stones could support the market in the long term, but maintains a cautious outlook for the months ahead. Consumer demand in the United States and India showed signs of stabilising, yet the group's first-nine-month average realised price of $97 per carat reflects continuing pressure on prices.
The suspension of Venetia's operations shows the disruption facing the diamond industry as consumer preferences shift and new technologies reshape the market. The production pause is part of De Beers' effort to align supply and costs with a weaker rough-diamond market; its two-year duration and continuing infrastructure work leave open the prospect of a restart. The future of thousands of workers and the broader South African diamond sector now hinges on how quickly the industry can adapt to these changes.
