Sales are falling as some buyers switch to lab-grown diamonds

🌐 Here's What Happened

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.

📌 Key Details

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

Workers' unions have previously warned against job losses in South Africa's mining sector, which employs almost half a million people , external and accounts for more than 4% of national GDP , external .

De Beers is majority-owned by Anglo American, which is reportedly trying to sell it and shift focus to the growing copper market , external fuelled by the recent AI boom.

At the Venetia mine, De Beers has pledged to use those two years of downtime to make infrastructure more "efficient" with increased "capacity" , external , ready to reopen production once market conditions improve.

Times remain tough across the industry, which has seen the International Diamond Consultants' rough diamond price index almost halve since 2022.

📰 Source: BBC Africa