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Mumbai: De Beers Group has reported a massive 34% drop in diamond production in the fourth quarter of 2024, mainly due to the closure of its mines at the expensive Moray mine.
In its Q4 report for the year, the diamond giant said it recovered 3.78 million carats in Botswana and Canada, down from 5.83 million carats in the same period in 2024. The company has also cut its production forecast for 2026 as it struggles to compete in the ‘traditional’ global market.
The biggest drop in production was seen in Botswana, De Beers’ largest operating hub. Production there fell 56% to 1.88 million carats. Processing at the troubled Jwaneng mine, known as the world’s most powerful diamond mine, also remained suspended during the quarter.
The company said the investment was part of a “pre-production boost to operational performance”, which it said was necessary to prevent further inventory build-up during a period of difficult demand and to gain market readiness.
Other regions also saw declines. Namibia’s production fell 21 percent to 0.5 million carats due to natural disasters at its offshore mines. Southern Africa’s production fell 10 percent to 0.5 million carats, while the Venetia mine in Canada saw a higher return of 949,000 carats as workers switched from open cast to underground mining as higher-grade ore was used.
Despite the decline in production, De Beers managed to increase its sales volume by offloading inventory. Sales of 27 billion in the quarter totaled 5.9 million carats, generating revenue of $515 million, compared to $543 million in the fourth quarter of 2024. However, the average price per carat fell 7 percent to $142 for the full year, reflecting a 12 percent decline in rough diamond processing and an average of lower-value stones in the sales mix.
Parent company Anglo American has also written down De Beers’ value this year due to the prolonged recession. Anglo, which is currently in the process of selling its 85 percent stake in the diamond production unit, noted that De Beers is expected to be in the red for the 2025 financial year. As a result of ‘unlimited energy, judiciousness and carat optimization’, De Beers has reduced its 2026 production guidance to 21-26 million carats, down from its previous estimate of 26-29 million carats. “We continue to accelerate our short-term planning to balance our production with market demand,” the company said in a statement.
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