De Beers, the world’s largest diamond miner, took a massive hit in 2023, with its parent company Anglo American writing down the value of the renowned gem producer for the second consecutive year. The cost: almost $3 billion.
The decline is largely due to the growing popularity of lab-grown diamonds, which have eroded consumer demand and driven down prices over the past decade. As a result, diamond prices have slumped, with Anglo American posting a net loss of $3.1 billion in 2024, up from a profit of $283 million the previous year.
The value of De Beers has plummeted to $4 billion, with the company’s market share dwindling to just 10% of the global diamond market. The decline is attributed to the rise of lab-grown diamonds, which offer similar characteristics at a fraction of the cost.
Anglo American’s CEO, Duncan Wanblad, admitted that the diamond market has proven “really, really difficult” for the company. He also hinted that plans to spin off De Beers may be delayed, citing limited traction on its strategy to dismantle parts of the group and focus on more profitable copper and iron ore mining.
The company’s plan to sell or demerge De Beers is expected to be pursued alongside the sale of its South African platinum business and steel-making coal assets. At least part of De Beers is expected to be purchased by the government of Botswana, which hosts many of the company’s diamond mines.
Source: https://www.theguardian.com/business/2025/feb/20/anglo-american-writes-down-diamond-de-beers-29bn