Anglo American Eyes Fresh De Beers Write-Down as Diamond Slump Deepens

Gem News: Mounting Pressure on De Beers’ Valuation

Anglo American, the parent company of De Beers, is once again weighing a reduction in the iconic diamond miner’s book value, marking what could be the third such cut in just two years. The move reflects the prolonged weakness in global diamond demand, which has continued to weigh heavily on prices, margins, and investor confidence across the sector. According to Anglo American, an impairment review is currently underway to reassess De Beers’ carrying value in light of challenging market conditions.

This potential write-down follows a turbulent period for De Beers. Just last year, Anglo slashed the miner’s value by $2.88 billion, bringing its carrying value down to $4.1 billion. That adjustment itself came after a $1.56 billion write-down at the end of 2023. Taken together, the repeated impairments highlight the scale of the downturn and underscore how rapidly market realities have shifted for the once-resilient diamond business, as this Gems News report notes amid growing industry concern.

Production Targets Reined in to Match Demand

Alongside the valuation review, Anglo American has revised De Beers’ production guidance for 2026. The company said the adjustment is intended to better align output with prevailing demand. Under the new outlook, annual production is expected to range between 21 million and 26 million carats, down from the earlier forecast of 26 million to 29 million carats. This strategic pullback signals a more cautious approach as miners seek to avoid oversupplying an already fragile market.

Market indicators have reinforced the need for restraint. De Beers’ rough-price index fell 12 percent in 2025 on a like-for-like basis. When stock rebalancing and special high-volume deals with lower margins are included, the decline deepened to 25 percent. Average rough prices also slipped, falling 7 percent year on year to $142 per carat.

Sales Volumes Rise, Profitability Suffers

Despite the pricing pressure, consolidated rough-diamond sales for the full year rose 9 percent to $2.98 billion, while sales volume jumped 23 percent to 23.9 million carats. However, these gains were not enough to offset weaker pricing and higher costs. Anglo American has warned that De Beers’ EBITDA for 2025 is expected to be negative, reflecting the strain on profitability.

Production for the year declined 12 percent to 21.7 million carats, largely due to planned maintenance shutdowns and cost-management initiatives. Regional performance varied sharply. Botswana output plunged 56 percent following shutdowns at Jwaneng and Orapa, while Namibia saw a 21 percent decline. South African production slipped 10 percent, but Canada stood out as a bright spot, with output more than doubling as new ore was accessed at the Gahcho Kué site.

Sale Process Moves Ahead Amid Uncertainty

Anglo American has reiterated that it is continuing efforts to divest De Beers, confirming that a structured sale process is underway. The company said it is actively progressing the separation, even as market conditions remain difficult.

What lies ahead is a delicate balancing act. Anglo American must stabilize operations, protect long-term asset value, and find the right timing and structure for an exit, all while navigating subdued demand and volatile pricing. The decisions taken in the coming months are likely to shape not only De Beers’ future, but also broader confidence in the global diamond industry for years to come.

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