Diamond Slump: De Beers to Halt Operations at South Africa's Largest Mine for Two Years

Global diamond company De Beers has decided to suspend operations at its largest diamond mine in South Africa for two years, citing poor profitability.
The move includes plans to lay off over 1,000 workers, sparking strong opposition from labor unions.
According to South African broadcaster eNCA and the BBC on July 15 (local time), De Beers recently announced that it would halt production at the Venetia Mine, located in the northernmost Limpopo province of South Africa, for the next two years.
The company explained that this measure is part of its cost-cutting and business restructuring efforts.
During the production suspension, the company plans to continue upgrading underground mine infrastructure and improving facility efficiency to prepare for increased production should market conditions recover.
The Venetia Mine, located near the borders of Botswana and Zimbabwe, is South Africa's largest diamond mine by production value, accounting for more than 40% of the country's total diamond output.
De Beers has operated the mine for over 30 years and has been investing in deep-level mining more than 1,000 meters underground since 2012.
De Beers projected that the slump in the natural diamond market would continue for the time being.
The company noted that diamond prices have fallen and demand for rough diamonds has shrunk significantly due to a combination of sluggish demand following the COVID-19 pandemic, a decline in luxury consumption in China, and the rapid growth of lab-grown synthetic diamonds.
Furthermore, the industry is facing widespread difficulties exacerbated by an oversupply of rough diamonds from Angola and geopolitical uncertainties.
Since 2024, De Beers has been undergoing restructuring, including cutting annual management costs by over 100 million dollars and selling or closing non-core assets. Earlier this year, the company also halted an expansion project at a mine in Canada.
Anglo American, the British mining company that is the majority shareholder of De Beers, is currently pursuing the sale of De Beers.
Along with the production suspension, the company has initiated restructuring procedures under labor laws.
It is reported that approximately 1,200 people, including 1,134 permanent employees and 80 sales staff, will be subject to layoffs at the Venetia Mine, which employs about 4,400 workers.
The National Union of Mineworkers (NUM) in South Africa immediately protested the decision.
The union criticized the company for failing to engage in sufficient consultation before deciding to halt production, stating that the move would cause severe damage to workers, their families, and the local community.
The union specifically argued that it had made concessions during previous wage negotiations in consideration of the difficulties facing the diamond industry, yet the company unilaterally pushed ahead with the production suspension and restructuring.
The Congress of South African Trade Unions (COSATU) also supported the NUM, stating that layoffs should be a last resort only after all other alternatives have been exhausted.
The union plans to consult with the government to demand measures that will minimize job losses.
※ Please note: This article was translated by AI and may contain errors.