Anglo American said this week it may write down the value of its De Beers diamond unit for the third consecutive year as the diamond industry faces sustained market weakness.
The mining giant said it is reviewing De Beers’ carrying value and could record an impairment when it reports upcoming full-year results. The company already took a $2.9 billion writedown in February 2025 and a $1.6 billion charge in early 2024.
Anglo American expects De Beers to post negative earnings before interest, taxes, depreciation and amortization in 2025. The diamond business recorded an underlying loss of $25 million in 2024, down from a $72 million profit the previous year.
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Diamond prices continue to decline across the industry. De Beers’ average realized price fell 7% to $142 per carat in 2025, driven by a 12% drop in the rough price index, according to the company’s fourth-quarter production report.
The diamond market faces pressure from collapsing demand in China and growing competition from lab-grown stones. Rough diamond prices have dropped nearly 50% over the past two years, while polished stone prices fell approximately 35%.
De Beers responded by slashing production. The company recovered 3.8 million carats in the fourth quarter of 2024, down 35% from 5.8 million carats in the same period a year earlier.
Anglo American announced in May 2024 that it would sell its 85% stake in De Beers as part of a broader restructuring to focus on copper and iron ore operations. Chief Executive Duncan Wanblad told reporters he expects little progress on the sale in the first half of this year but anticipates movement in the second half.
“Given the state of the market, given the shape of the business as it stands right now, I’m really not expecting much traction or progress in the first half, but picking up in the second half,” Wanblad said.
Related: Angola, Botswana Race For De Beers Control Following Anglo American Exit
Multiple parties have expressed interest in acquiring De Beers. A consortium led by a former De Beers managing director represents one potential buyer, while the government of Botswana, which owns 15% of the company, has indicated it wants to take control. Namibia has also signaled interest.
The De Beers sale forms part of Anglo American’s transformation as it prepares to merge with Canada’s Teck Resources. The combined entity will operate as Anglo Teck.
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