Anglo American Slashes De Beers Valuation Again, Eyes Consortium Sale

Anglo American has once again significantly reduced the valuation of its De Beers diamond business, marking the third such adjustment in three years. The London-listed miner announced a write-down of $2.3 billion for its De Beers unit, underscoring the persistent challenges within the diamond market that are complicating efforts to sell the subsidiary.

Deepening Financial Challenges

The recent write-down follows a warning from Anglo American earlier this month regarding a review of the De Beers business. For the fiscal year 2025, the diamond unit recorded an underlying earnings loss of approximately $500 million. This latest financial adjustment reflects the difficult market conditions that have plagued the industry.

Strategic Sale to a Public-Private Consortium

Despite the valuation challenges, Anglo American remains committed to selling De Beers. Chief Executive Duncan Wanblad indicated to the Financial Times that the company is likely to sell its diamond mining and marketing subsidiary to a public-private consortium. This group is expected to include governments from African nations where De Beers operates.

Wanblad expressed hope that the sale could be completed within the current year. He specifically noted that the government of Botswana, currently holding a 15% stake, is anticipated to increase its ownership in De Beers as part of the spin-off. Officials from Angola have also expressed interest in acquiring a stake, with proposals suggesting a 20% to 30% share for the Angolan government. Namibia is another African nation reportedly interested in joining the consortium.

The potential sale structure highlights a shift towards greater governmental and national involvement in the diamond sector of resource-rich African countries.